Ïce Condos (Lanterra Developments, Cadillac Fairview) - Real Estate -

Land tranfers tax will be about 2% when you buy the building. Plus your mortgage payments will not be going towards your mortgage until occupancy occurs (around 6-8months). Don't forget to factor any loss time to try to find a tenants. And lastly because you will not be in Canada most of the time, you will have to hire a property management team to collect rent, find tenants, etc... which is usually 5-10% of rent collected. There's also many other issues, such as the maitenance is lowest the first year or two and shoots up significantly after. Home price increases does not follow rate of inflation so that calcuation will not work. Tones of other things to address. It's all about what your expectations are and long term goals are. HTH.
 
You forgot to factor in the inflation of energy costs. Course the building is suppose to be energy efficient so it might not need to use so much? In which case the maintenance fee won't increase much. About the rental though. If you find an agent to look for good renters, you won't need to get them to collect rent for you. When the person rents, they usually have to pre-write cheques so you can just deposit them when the date arrives. Commission is about 3/4 of 1 month rent cost (one time payment). Also you forgot to take into account rent increases. It won't stay at $1,500 if housing prices and energy costs go up higher.
 
True, utility costs will change as well so that needs to be taken care of in his calculations.
Not good to get a real estate agent for Jani's case as he won't be in the country a lot. I don't know if the agent will be able to answer calls, repairs, complaints etc... throughout the year as they are just responsible for getting a tenant. If the agent is not willing to do that then get a property management group.
Right now, rent hasn't kept up with the price increases of condos. I read a report that there is a downward trend with respect to rents in the next couple of years as a bunch of condos will be closing with many of them owned by investors. So I wouldn't count on that too much. Either way, one should always allow room for any type of correction so you don't screw yourself on the investment. HTH.
 
Ice Condos

Well outlook for 5 years i have no clue where ill be. But my parent reside in GTA so im set in terms of taking care of tennants.

How easy is it to tennant a 1 bedroom in that area? I looked and not many adverts for the waterfront area there?

my only concern is that with an average of 600 - 800/month ill be needing to carry that condo, will i be able to sell it at 400K + to generate a decent margin. Considering im putting about 85 - 90K into this project over the 5 year period. I dont plan on residing there.
 
Ice Condos

Also note the assignment fee is waived so nearing end of construction i can offload it again in a ideal market conditions i guess i would find someone to take it especially being up so high 31 floor.
 
Just keep in mind assignment fee is only what the builder 'would have' charged you as penalty otherwise (now waived) if you sold the unit before closing ... if you successfully 'offload' the unit you would still have to pay the RE agent fees for their service .... while I agree 31st floor is high, I am not so sure in this location context it is that unique of a character (given everything is tall in the area)
 
janisell said:
Well outlook for 5 years i have no clue where ill be. But my parent reside in GTA so im set in terms of taking care of tennants.

How easy is it to tennant a 1 bedroom in that area? I looked and not many adverts for the waterfront area there?

my only concern is that with an average of 600 - 800/month ill be needing to carry that condo, will i be able to sell it at 400K + to generate a decent margin. Considering im putting about 85 - 90K into this project over the 5 year period. I dont plan on residing there.
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Do you really want to make your parent's spend their time running after tenants? My parents have always had rental properties, so I know that having tenants is no piece of cake. Even if you forget about repairs/questions/general hassle, what if you get one bad tenant that decides that he doesn't want to pay rent or move out? It will take you months to finally get him evicted, and the place will be an absolute wreck when he does leave. Oh yeah, that's another thing. One bad tenant, and your brand new, pristine condo won't be looking so great. Don't forget to budget for repairs. And you are contemplating kicking in 600-800 dollars a month for the privilege of dealing with all of this?

Tenants are not hard to find in that area. Lots of people work and live in the downtown core, but finding someone that would pay $2200/month for 500 sq.ft shoebox may be a different story.

If you were to invest your 80k down payment at 8% over the next five years, you would have 117k. This means the opportunity cost of investing in this project is about 37k. Also, when selling your condo, I'm guessing you are looking at least 5% in real estate commissions, so that will be another ~20k. That means that if you are super lucky and sell at 375k, you will only be breaking even. If you defy all laws of economics and sell at 400k, you will have made 25k after 5 years or 5k/year. Wow, what a great return! :rolleyes:

Also, I don't know if you have noticed, but Ontario is entering a recession at the moment and prices have been flat for all of 2008... doesn't seem like a great time to buy.

Sorry for the lengthy reply, but i felt the need to comment. I'm 23 as well, and have rented out my condo for the past couple of years. The only difference is that I bought at a really low price and thus, I have positive cashflow every month. Oh, and I have a super property manager that just mails me checks every 3 months without me having to lift a finger. If you find a project like that, jump on it... but for this, with the hassle and risk involved, I would run as fast as I could in the opposite direction if I were you.
 
Condo investment

janisell said:
Hi,

Im a new investor in to Condos. I am interested in purchasing at the ICE. I have a few questions. Im looking at a unit on the 31 floor facing west in the Phase 1 55 storey Bldg with a closing in late 2013.

1 Bedroom plus study 522 Sq Ft

the price works out to $610.00 a SQ FT. Note: im 23 yrs old and this would be my first investment.

1. When buying a pre-con is there a way to negotiate the price down.

2. what rate of property tax is fair to assume in 5 years at that location.

3. I would assume about 60 - 75% would be investors like myself looking to turn a profit from all this. So unloading this condo will take some time during which i would have to hold it, will i be able to rent out the unit and break even. If not how do you pros calculate within reason what the additional carrying costs would be after the rental income.

4. I make a decent income but im in a volatile business (import/export) and in the current economic times its very hard to see the future.

5. Also I would like to calculate my monthly mortgage payment should i hold that unit what is a fair rate of interest to assume 5 yrs from now when the closing time comes.

thanks
Jani
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I hope this isn't against the forum rules... if some of you investors are interested in a cheaper existing alternative (in comparison to what's being built), I am privately selling "infinity" unit on 35th floor from Infinity phase 1. It is the curvy unit looking at south-west, 2 bed/2bath/2 balconies, 970 sq.ft.+ 238 sq.ft balconies. The exact same unit is called 'coliseum' in phase 3. You can see my online ad with pics here:
http://toronto.kijiji.ca/c-ViewAd?AdId=67797357&Guid=11bb37d4-3640-a0e6-5744-94e4ffff275d
and here:
http://www.homesbyowner.com/76963
The nice part is, the full frontal view will remain unobstructed. $475/sq.ft, including parking and locker.
 
Marino ... you are going to hate me for saying this, I looked at your photos and I must say you have a lovely looking unit on a very high floor and good exposure, however your south view will surely be block by Infinity3 when it is built as it will at least match the height of Infinity1 if not taller than it~
 
^.. The views in those pictures won't be affected as they are south west.. the views of the first 35 storeys of ICE however will.
 
no he's right. infinity 3 will be right in front of infinity 1. His direct south view will be blocked. He might be able to look at the lake from the side.
 
Solaris said:
Marino ... you are going to hate me for saying this, I looked at your photos and I must say you have a lovely looking unit on a very high floor and good exposure, however your south view will surely be block by Infinity3 when it is built as it will at least match the height of Infinity1 if not taller than it~
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Solaris, I don't hate you... I think everybody should like everybody...
but you are not right. The south-west views of the lake will not be affected by infinity 3, only the south view. Think about it, with all that's being built around, that is an asset for the future value. Phase 3 views to the south-west will be affected by the tall brown buildings on harbourfront. My unit will lose about 20% of the views it has now, but the main frontal view will remain unobstructed as Infinity 3 is on the side of where my unit is positioned.
 
AKS said:
no he's right. infinity 3 will be right in front of infinity 1. His direct south view will be blocked. He might be able to look at the lake from the side.
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Of course everybody is entitled to their opinion, but you are wrong... maybe next time you walk around you will see that infinity 3 is on the side of the curvy part of infinity 1. Yes, view from the south balcony will be partially blocked, but this is not a huge deal because my south balcony is huge and is looking from east to south-east to south to south-west to west. But the frontal view from the unit is south-west, which could only be blocked by infinity 4 if it were tall enough (16 floors). So, this will remain unobstructed and thus this unit will be valuable in the future, as long as the building is managed properly.
 
Condo George said:
Phase 1 now starting from $459,900 no parking for a 2 bedroom 1.5 bath. :D
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$459,900 for ~750 SF = $613 PSF
why are you happy about something like that ??? :confused:

with RE at prices like that, it makes it unaffordable for alot of people in the city !
 
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