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OnePark West 
Sackville Street at Cole Street, Toronto
Developer: The Daniels Corporation


OnePark West Condos (Daniels Corporation) - Real Estate -

asiancolossus

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#1
I have an opportunity to buy a townhouse condo for about 400/square feet in this area. I'm getting a huge amount of criticism because Regent Park is such a nasty place with violence, drugs, etc, but this area is undergoing revitalization and the buildings are quite decent. They are built by Daniels who are quite reputable. I think if this place was two blocks to the west, it would go for at least 550/square feet these days.

I'm thinking of buying to invest and rent. Am I crazy??? Is Regent Park so bad to the point it can never be redeemed? I'm thinking of taking a chance that there will be some improvement with this 6 phase program and although it won't happen right away, it will in 5 to 10 years. My bigger concern is that nobody will rent in this area because of the reputation.

Any opinions would be appreciated. Thanks in advance.
 

cdr108

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#2
what price point are you talking about, and floorplan layout ?

$400 psf is ok, but how efficient/well laid-out is the space, etc.
 

asiancolossus

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#3
what price point are you talking about, and floorplan layout ?

$400 psf is ok, but how efficient/well laid-out is the space, etc.
Around 300k for 750 ft 1 bedroom two patios bedroom 13x11 with walkin closet. I'm more worried about the location and whether I can rent it out.
 

cdr108

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#4
just curious what type of finishes are you getting for $400 PSF?


$300K, with 20% DP and amortized @ 4.5% for 5/25yrs = $1,328/m;
plus you have to include:
* maintenance fees (~$375/m),
* property taxes (~$250/m),
* insurance (~$150/m), etc ... your monthly costs are $2,100/m to break even

market rent for 750 SF would be ~ $1700-1875/m in your typical condo.
that means negative cashflow, and personally, i wouldn't pay market rent to live in that area.
 

simuls

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#5
Regardless of CDR's calculations, I think that Regent Park is one of the very best places you can possibly buy in Toronto right now with one of the largest upside potentials. In 15 years - assuming you plan to hold onto it, it'll be worth a lot more.
 

asiancolossus

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#6
Thanks cdr and simuls, I thank you for your opinions, especially the calculations cdr. I just signed the agreement today, it was like a zoo there! I think I can manage to pay off more than the 20%. I was told that I should be able to rent it out at at least 1400 (without parking), so its interesting that you say 1700 to 1875, that seems a bit high, with the reputation of the neighbourhood I supsect I won't get that high. Maintenance fees are 150 a month, which is better than the .50 per square foot in condo, but I will have no amenities so I won't be able to rent it out for so high. Property taxes estimated at 1%, so 3000 a year so about 250 a month is about right.
I think with all that considered, I may have a chance to break even. And the more I put down the better my chances.
I'm just wondering, with Tarion covering the warranty for the first bit and the tenant covering the contents, would I still need house insurance? I suppose if someone breaks in, I still would need it?
And just as an aside, my real estate agent actually bought a unit himself in the condo, so that made me feel lots better.
The finishes I could not choose but they are quite upscale (for me at least), all stainless steel appliances and hardwood flooring in the main living area. So that I was very impressed with. The real estate agent says the interiors are actually an upgrade from phase 1, Daniel's is actually going all out on this.
Move this townhouse 2 or 3 blocks west and we'd be talking at least 550-600 psf, so I'm taking the chance. I hope I made the right decision. I'll only know in time. My time horizon depends on if I have trouble renting it out. If so, I'll try to sell, if not, my time horizon is at least 3 to 5 years.
 

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