Can you help me understand why a sea of lower income rental properties (which I don't necessarily agree with) would be such a hindrance to the Y&E area but presents such a wonderful gentrification opportunity at Jarvis & Dundas/Regent Park?
Well... going around in circles aren't we? Again for the LAST TIME, this is strictly project specific & price sensitive. Yes needless to say there is a sea of lower income rental housing at D/J as well, but afterall I didn't pay $615 psf and up, at the Madison's price range it would be in direct competition with much more desirable downtown locations.
Location Location Location, We’ve all heard the expression but for good reason. Yes not all properties will offer the same return, neither will all locations. If using a long term investment strategy what will happen to the area down the road? Will there be any major infrastructure developments, or efforts to implement zoning changes? On the NW corner of D/J the Ontario Gov, is pumping in $100 million into 222 Jarvis, it's one of the largest ever retrofits in north america, once completed this fall the formal Sear Canada HQ would house over a thousand gov. empolyees, bring in much needed pedestrian traffic east of Yonge. It's unlikely the Gov would spend $100 mil. and let that corner fall back into the hands of undesirables.
With two excellent hotels Hilton and the Grand on the NE & SE corner, the SW corner of D/J presents a wonderful opporuntiy simply because it's an area in transition, a corner within walking distance of everything downtown, it has vastly improved over the last few yrs, recently took a 12am latenight walk , you have your occasional boozed up homeless which is the norm downtown, it looks and feels just like any other downtown street. With X2 rising up on the north, and Mondial coming on the south end, one street over developements on Sherbourne JCM, 500, Kings court, modern, King+, now wellesley/Sherbourne, the 15 year revitaliztion plan of Regent Park and the coming 2015 PamAm games would bring many develpments to the entire lower eastside, the sucess of Pace could very well trigger a slew of other developements along this corridor, to think Jarvis was once the place to be in this city, a treelined boulevard nested with the Mansions of the Rich and famous... Currently one block south of D/J @ George/Shuter, O2 Maisonettes are going up, units are priced from $600.000, the smaller units were sold out in a single day, seems many with deep pockets do recognize the potential as I have...
Y/E is a more stable environment, with NIMBYs out in full force developments are few and slow, it would reflect market returns. Similar to the equity market, the present argument can be summarized into a choice bewteen mature stage conservative bluechip stocks with market performance or early stage yet undiscovered growth stocks with higher risks but yielding potentially higher returns on a % bases. Intel, Microsoft were great buys in the 90s,but for anyone who bought in this decade, you 're doing no better than the rate of inflation.
Moreover it is strategically sound to ensure an investment property appeals to a wide range of prospective tenants. For the price of a one bedroom at Y/E, one could get a two bedroom at D/J, A one bedroom in Y/E may seem like a great idea if only targeting single professionals or students, but perhaps a 2 bedroom in D/J for the same price would serve one better. Located right across from Ryerson U, and 7 min walk from Eaton Centre, one would be able to attract the same demographic and more ie families, retirees, 2 or more students, plus the rent differential bewteen the two locations are minial.
I am an investor not an end user, Lower psf at D/J about $100 psf difference directly translates to lower initial investment and future carrying cost, greater leverage. For precon investment, the use of leverage is the key to profits.
Again I repeat these are the rules I follow: Let your money work for you. Always buy in an area that’s gentrifying. When buying preconstruction you are buying 3-4 years out. Why pay a premium to be in an area that’s already developed? The greatest up tick will be found in areas that are undergoing rapid growth and gentrification. Never buy at the high end of the market. When you are buying preconstruction you are essentially buying condo futures. While we can all gaze into out crystal ball and predict the future we can never be sure with 100% certainty that our predictions will come true. Those who buy at the high end, you will be the most exposed when the market softens or if there is a downturn at the time of the project completion. By buying astutely in the mid to low end of the market you are better positioned to sustain a market shift or correction.
again because people don't care about that. But downtown you have access to so many great areas. Though you're about 15min a way on the subway from Y&E.