OnePark West Condos (Daniels Corporation) - Real Estate -

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asiancolossus

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

$400 psf is ok, but how efficient/well laid-out is the space, etc.
 
cdr108 said:
what price point are you talking about, and floorplan layout ?

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

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.
 
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.
 
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.
 
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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