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Investment options

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carturo15

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For investment purposes, what option do you think is better?

1. Market Wharf (St Lawrence market), 620 sq ft 7th floor facing west for $294900 or
2. X Condos (Charles&Jarvis), 545 sq ft 16th floor facing east for $259000

same price per sq ft on both $475
 
Last edited:
carturo15 said:
For investment purposes, what option do you think is better?

1. Market Wharf (St Lawrence market), 620 sq ft 7th floor facing west for $294900 or
2. X Condos (Charles&Jarvis), 545 sq ft 16th floor facing east for $259000

same price per sq ft on both $475
Click to expand...


those are good prices ...
do you have floorplans for both b/c layout is important since pricing is similar for both?

is the MW unit a 1 bed or b+d since it's 620 sf?
 
The Market Wharf unit is waaay better, more than worth the price difference, in my opinion.
 
I'd agree with BB, the market wharf unit is better. With waterfront redevelopment it also has a much much much higher upside to it in terms of capital appreciation.
 
I agree Market Wharf is better but that said, comparing 545 to 620 feet is obviously not fair and the price differential reflects that.
Location: Individual but I think there is less product around Market Wharf. The bedroom with a window way better.

However, as an investment to rent. Assuming fees are the same, my suspicion is you will get $1400-1450 for the X and $1500 to $1550/month for Market Wharf. So, from a return point of view, I suspect you may do better on the net rental return with X since assuming the same fees rate, you will pay proportionately more condo fees (13.7% more) and more tax (13.5%) with only a 7% increase in rent. So you will net less rate of return with Market Wharf. Price appreciation: likely more with Market Wharf. Depends on your goals, time horizen.

Also, make sure you look at the views. You may be looking at a wall in one of these and hence the great price and that would obviously influence your decision. However, I am assuming both are comparable.
 
Are the down payments structures similar?
When is the expected closing date of each building?
What is the comparable sales in the area?
Is it for rental or flipping?

All worthwhile questions when looking into an investment.
 
Both the projects seem to be a bit later on in development. From what I have seen, the rents you make from an investment unit may either cover your monthly costs, or you may even be in the red.

Typically the return you realize is only in appreciation.. you will have to consider closing costs, land transfer taxes, real estate fees, and any capital gains taxes... IMO you should network with agents that can you find you projects that are not open yet... you will have to wait longer but the price differential can be significant.. also try negotiating a zero dollar assignment fee in case you want to assign and not pay the developer.... When I look to invest, I try to estimate the expected return between alternatives and than pick the one with the return that reflects the risk I am willing to take...
 
Very true.

If a project is only asking for 15% down, with 5 years closing (with anticipations it could go 6-7) and the ability to get anywhere from 10,000-30,000 off of the original price, the best option for investment in my opinion is pre-construction.

Im biased, but I have seen it succeed.
 
SeanLafortune said:
Very true.

If a project is only asking for 15% down, with 5 years closing (with anticipations it could go 6-7) and the ability to get anywhere from 10,000-30,000 off of the original price, the best option for investment in my opinion is pre-construction.

Im biased, but I have seen it succeed.
Click to expand...

Yes but prices were rising the last few years. They are stagnating presently maybe even dropping. Most precon is asking a premium which has been offset in the 5 years going back but the question is will it continue in the future. Affordability it would seem would be an issue going forward.
 
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