taal
Senior Member
This discussion all started when someone posted: to which I find questionable, again most new precons are sold to investors, I was simply alluding to the fact that on a strictly investment perspective, at $615 psf. & $0.54/sf maintenace. there are simply many more viable downtown core alternatives with greater profit potential for an investor, ie. peter street, pace condos. even cinema tower etc. ie. areas under raip transition or gentrification.
The crosstown LRT has a projected completion date of 2020, knowing the way the city works, we won't likely see it done til 2015, most condo investors are focusing on short term ROI, as once a building ages beyond 10 yrs, the monthly carrying cost of maintenace skyrockets, down at Y/B a 2 bedroom unit at 30 hayden st. can be had for under $380K with a $700 maintenace, while just next door @ Bloor1 a similar 2 bedroom would fetch $600K. With the height restrictions in this neighborhood, the pace of developement would be extremely gradual.
The long awaited LRT would eventually bring some much needed streetlife along this corridor & help to bring condo prices in this neighborhood to its full potential. However with a glut of cheap rental housing nearby one would be a little hesitant paying the $615 sqf + maintance in 2011 & hoping the rent would keep you afloat for the next 10-15. years. Personally I would stick with downtown core when it comes to investing.
Again the rental housing is not cheep ... and plenty of this exist downtown. The LRT will really do little for Y&E directly, it won't help at all other then employment.
You keep mentioning streetlife but I keep telling you there's more street life then the majority of downtown Toronto; This is not an exaggeration. You'll like find Yonge street up to Broadway bussier then most streets downtown, way busier then anything in the St. Lawerence market are.
To be clear though, maybe this is where the confusion arises, I'm referring to a very small area i.e. not any further east then Mt. Pleaset, and not west of Yonge at all, there's nothing west of Yonge till you get around Avenue. Then up Yonge quite a distance though.
Now regarding the price, I agree that seems too high anyway. The market will of course tell. But I agree with you that I'd expect downtown to cost more, even though by far and large it has less streetlife 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.
My explanation for the price to a certain degree is the lack of new supply.
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