cabbagetowner
Active Member
never "invest" in a condo. buy one to live in.
simuls
Senior Member
Blanket statements like that are completely useless as it all depends on the purchase price/rental market/upkeep costs, etc. I own condo's and they more than pay their own way, but I bought them 6 years ago at a very different price point. At $325 000 (for a 1 bedroom, 650 sq foot), yes it's a dumb investment, but at $200 000 (in Toronto) it can be a very money making vehicle.
JackLondon
New Member
I agree.
Investors who are buying in at these new price points must surely have some idea of what 1 bedroom apartments are renting for in downtown Toronto.
I wonder what they are tapping into their calculators.
Are they hoping to break even on their monthly expenses?
Maybe, if their down payment is large enough.
Do they think write offs will put them in the black?
Maybe, but they better be incorporated and have a really good accountant.
Is the big payoff coming when they sell in a few years and they just need to hang on?
Maybe they will have to hang on more than just a few years.
Maybe they know something the rest of us don't know.
I wonder what it is?
cabbagetowner
Active Member
it's true you don't buy into markets you buy deals, but i have yet to see a condo deal that makes as much financial sense as other segments of the re market (for example multi unit res.). if you crunch the numbers on condos i think you'll find they don't have the cap or roi that a multi res has. congrats on making money on the condo but perhaps you would have made more. i see a lot of people buying condos for cap apprec. good chances they will get a hair cut in the next couple of years.
luxome
Active Member
a little off topic...
Talking about investments, i wondered if anyone who purchased in One St. Thomas thought it was a good investment. The rents are out the roof. It would be much more cost effective to live in hotel all year round. Makes me wonder how the owners ("investors") in that building are holding out.
Talking about investments, i wondered if anyone who purchased in One St. Thomas thought it was a good investment. The rents are out the roof. It would be much more cost effective to live in hotel all year round. Makes me wonder how the owners ("investors") in that building are holding out.
RedRaptor
New Member
Wrong place to ask this question. You should really be talking to your real estate agent who is going to make a lot of money off your purchase.
My understanding is that they want 10% on Occupancy so when the building is ready to be occupied, you will need to pay the remaining 10%. Then you will need to pay "Ghost Rent" for a few months until the building registers. On closing, you will need to pay closing costs and get a mortgage. At that point, your monthly mortgage will start.
My understanding is that they want 10% on Occupancy so when the building is ready to be occupied, you will need to pay the remaining 10%. Then you will need to pay "Ghost Rent" for a few months until the building registers. On closing, you will need to pay closing costs and get a mortgage. At that point, your monthly mortgage will start.
L
love.condos
Guest
I'm not sure I understand exactly what you mean by recieving the 10% back. All builders structure their deposits differently for many various reasons, pre-sales, if construction started, or if its inventory. Your APS (front page) should list exactly all your deposit dates and amounts. If Im reading your question correctly, they are asking for a total deposit of 25%, which is normal. The additional 10% is that at interim or before? If its before interim, then you owe 0 on occupancy for the deposit since you've already paid it. And no you would not recieve 10% back. As for closing costs, it varies, but to do a quick estimate it is roughly 1% of your purchase price. (Closing costs vary because of lawyer fees, levies, etc). Did noone explain this to you when you purchased? And no I am not an agent. But I can help you with these questions. Hope this was helpful
scrappyTO
Active Member
We did something similar with our condo. The developer needed 15% deposit on the purchase price (spread out over 3 payments), but our mortgage was approved with only 10% down. We still did have to pay what the developer required. But upon closing, the difference (5%) came back to us from bank, via our lawyer, so that we had a credit balance in trust with the lawyer. However, then all the closing costs, land transfer, fees, etc., came out of that amount, leaving just a small balance as a cheque back to us. It actually was very handy to have already paid this money, since it ended up covering all our closing costs so we were not left scrambling for money for closing.
Be sure you understand the difference between developer deposits, and mortgage down payment. They are not the same thing.
majic
LunaTIC
cityplace - i was told (when i called them) that some buildings registered within 6 months and others within 12 months.. sucks but oh well, let's just hope Luna beats the average
majic
LunaTIC
got a letter today (i'll scan it later as the scanner not hooked up)
------------------------
April 2, 2009 (i was hoping it was April 1 so it was a joke but no cigar)
Dear Loser(s):
I know you bought this unit back in March 2006 so we are delighted to inform you of your "confirmed interim closing date" 4 years later, March 8, 2010.
blah blah blah Customer Care Dept... balh blah blah.. smooth transition blah..
PDI 4 weeks before closing.. blah blah blah..
-Kellee Burt
------------------------
anyone else got one of these? we bought a unit in the podium so if you bought in the tower, is your date the same?
why the delay? the shorter tower on the podium has been capped off for a while already and the Luna Vista is almost done.. it's gonna take 12 months to finish off the interiors??? seriously? and then what, another 12 to register the damned thing..
at least we still live at home but with a wedding approaching i dunno how much more of this i can take..
i guess the only upside to all of this is paying for the place with CA$H
/rant
------------------------
April 2, 2009 (i was hoping it was April 1 so it was a joke but no cigar)
Dear Loser(s):
I know you bought this unit back in March 2006 so we are delighted to inform you of your "confirmed interim closing date" 4 years later, March 8, 2010.
blah blah blah Customer Care Dept... balh blah blah.. smooth transition blah..
PDI 4 weeks before closing.. blah blah blah..
-Kellee Burt
------------------------
anyone else got one of these? we bought a unit in the podium so if you bought in the tower, is your date the same?
why the delay? the shorter tower on the podium has been capped off for a while already and the Luna Vista is almost done.. it's gonna take 12 months to finish off the interiors??? seriously? and then what, another 12 to register the damned thing..
at least we still live at home but with a wedding approaching i dunno how much more of this i can take..
i guess the only upside to all of this is paying for the place with CA$H
/rant
RedRaptor
New Member
I have a tower suite and the closing date is March 19th, 2010. Majic, I think the keyword is "closing". My understanding is thats the date when the building will be registered and you will no longer have to pay Concord Adex rent. I believe the "Occupancy" date is still Sept/Oct/Nov for Luna.
I could be wrong but thats how I understand it.
I could be wrong but thats how I understand it.
meiborlo
New Member
got a letter today (i'll scan it later as the scanner not hooked up)
------------------------
April 2, 2009 (i was hoping it was April 1 so it was a joke but no cigar)
Dear Loser(s):
I know you bought this unit back in March 2006 so we are delighted to inform you of your "confirmed interim closing date" 4 years later, March 8, 2010.
blah blah blah Customer Care Dept... balh blah blah.. smooth transition blah..
PDI 4 weeks before closing.. blah blah blah..
-Kellee Burt
------------------------
anyone else got one of these? we bought a unit in the podium so if you bought in the tower, is your date the same?
why the delay? the shorter tower on the podium has been capped off for a while already and the Luna Vista is almost done.. it's gonna take 12 months to finish off the interiors??? seriously? and then what, another 12 to register the damned thing..
at least we still live at home but with a wedding approaching i dunno how much more of this i can take..
i guess the only upside to all of this is paying for the place with CA$H
/rant
probably one of the best posts ever
Solaris
Senior Member
I have a tower suite and the closing date is March 19th, 2010. Majic, I think the keyword is "closing". My understanding is thats the date when the building will be registered and you will no longer have to pay Concord Adex rent. I believe the "Occupancy" date is still Sept/Oct/Nov for Luna.
I could be wrong but thats how I understand it.
I think the reference to 'interim' closing in fact suggests that is only a occupancy date when you start paying rent ... there is really only an 'interim occupancy' and 'final closing', Concord's reference to 'interim closing' would equate to 'interim occupany' as we all know it
