YC Condos (460 Yonge Street, Canderel Stoneridge) - Real Estate -

The S1 is the most ridiculous floor plan I have ever seen in my life. But I would love it as an office.
 
wow, a lot more crap floorplans:

* 2 bedroom / 2 baths squeezed in 665 - 690 sq ft
* 9'0" x 9'0" bedrooms
* 10'0" x 10'0" live/dine areas
* wasteful large 100 - 400 sq ft balconies which won't be fully utilized in our cold Canadian climates
 
Can someone advise. I can get a unit in YC for a price I consider very good for this location.

The thing that worries me is since the unit I am contemplating purchasing is on a lower floor approx 8th to 11th. With a west view (i.e. no real view) and is a small one bedroom…. can I get a good resale on this property? Say in five years I want to sell for a profit. With the amount I'd want to sell for say for example 350k, wouldn't purchasers prefer to take their 350k and get a better view and larger unit in a location maybe a bit less desirable?

I think it would rent out no problem but just worried I would be stuck with a rental property that no one would actually want to buy due to the lack of view.
 
buycondo said:
Can someone advise. I can get a unit in YC for a price I consider very good for this location.

The thing that worries me is since the unit I am contemplating purchasing is on a lower floor approx 8th to 11th. With a west view (i.e. no real view) and is a small one bedroom…. can I get a good resale on this property? Say in five years I want to sell for a profit. With the amount I'd want to sell for say for example 350k, wouldn't purchasers prefer to take their 350k and get a better view and larger unit in a location maybe a bit less desirable?

I think it would rent out no problem but just worried I would be stuck with a rental property that no one would actually want to buy due to the lack of view.
Click to expand...

Really depends on what the market will look like in 5 years. If prices jump then you're fine. If they drop or stay flat like they are now then you may not make much on it. You will be able to get it rented, though. I don't think view is that important unless you're looking at a brick wall and the unit is dark.
 
what is the size of unit and pricing can you get?

as TheKingEast said, pricing and quick saleability will depend on market conditions at that time.
also, have you taken into the realtor commissions/fees to sell, LTT and closing fees, missed opportunity costs over the next 5 years, capital gain taxes for non-primary residential property, etc into account in your 'profit'?

IIRC, the western view from YC will be Karma condos.
how far will it be from your building/unit?



buycondo said:
Can someone advise. I can get a unit in YC for a price I consider very good for this location.

The thing that worries me is since the unit I am contemplating purchasing is on a lower floor approx 8th to 11th. With a west view (i.e. no real view) and is a small one bedroom…. can I get a good resale on this property? Say in five years I want to sell for a profit. With the amount I'd want to sell for say for example 350k, wouldn't purchasers prefer to take their 350k and get a better view and larger unit in a location maybe a bit less desirable?

I think it would rent out no problem but just worried I would be stuck with a rental property that no one would actually want to buy due to the lack of view.
Click to expand...
 
if I decide to rent it should cover carrying costs:

have you independently calculated your costs and what is your anticipated rental income?
what LTV mortgage are you taking out, mortgage rate/amortization, monthly mortgage payment, property taxes, maintenance fees, etc.
please provide numbers.

get appreciation for 4 years:

this is NOT a given.
higher than normal appreciation over the past 15-20 years have largely been attributed to due to 2 main factors:
* drastically reduced interest rates (BofC overnight rates and 5-yr govt bond yield) which will rise (that's a given) during the amortization
www.bankofcanada.ca/publications-research/periodicals/wfs/


* loosened CMHC lending standards since 1995 that have been slowly eliminated or reduced the past few years with further restrictions to come.
http://www.cmhc.ca/en/corp/about/index.cfm


your initial unit cost is $650 psf + closing costs which will run to ~$30+ psf.


FUN FACT:
* do you know that a simple 100 basis point (ie. 1.00% rate) increase in the mortgage rate at renewal in 5 years will INCREASE your payment (principal + interest) by 8-10% even though one has paid down the principal !?!



buycondo said:
Its 483 square feet. There was only 8 of these units in the building so it was hard to get. Got it for 313900 after the 3k cash back on closing incentive. It was not easy to get.
Facing west on the 10th floor with a juliet balcony. I wanted east facing but this VIP phase was just incredibly difficult to get straight answers on whats available, whats being held, when prices are going up etc etc. Apparently cash back incentive is gone, prices are up, its 85% sold and will likely have very few units left when public according to the guy who processed my paperwork.

I have 10 days to cool but I think I will keep it. Its facing west but I"m on the southern part of the building and Karma will be 32m away and slightly more north than YC so I think my unit will be clear of karma looking straight ahead. I think I got a good price and if I decide to rent it should cover carrying costs.

Other than this unit I came across one 1bdrm for 335k at 519sq ft juliet balcony 12th floor and after that it was 345k and up.

I'm not sure if it is better to buy a pre con or close an assignment at a great price. My thinking is if you get a great price on an assignment and rent it 4years down the road you have appreciation plus equity. With a prebuild you just get appreciation for 4 years. I guess there are pros and cons to both but thats for another thread.
Click to expand...
 
cdr108 said:
if I decide to rent it should cover carrying costs:

have you independently calculated your costs and what is your anticipated rental income?
what LTV mortgage are you taking out, mortgage rate/amortization, monthly mortgage payment, property taxes, maintenance fees, etc.
please provide numbers.

get appreciation for 4 years:

this is NOT a given.
higher than normal appreciation over the past 15-20 years have largely been attributed to due to 2 main factors:
* drastically reduced interest rates (BofC overnight rates and 5-yr govt bond yield) which will rise (that's a given) during the amortization
www.bankofcanada.ca/publications-research/periodicals/wfs/


* loosened CMHC lending standards since 1995 that have been slowly eliminated or reduced the past few years with further restrictions to come.
http://www.cmhc.ca/en/corp/about/index.cfm


your initial unit cost is $650 psf + closing costs which will run to ~$30+ psf.


FUN FACT:
* do you know that a simple 100 basis point (ie. 1.00% rate) increase in the mortgage rate at renewal in 5 years will INCREASE your payment (principal + interest) by 8-10% even though one has paid down the principal !?!
Click to expand...


Yes I calculated carrying costs based on a mortgage after 20% down on a 3% variable. The total carrying cost I estimate at 1610 after maintenance and estimated property tax. I'd estimate rent for a small bedroom would be 1600 to 1700 in that area by 2018, actually it already is in that range today.

Yes Closing costs would probably be 10 to 13k. I'm aware of that. I may sell on assignment as that is free as per incentive but if I do close and interest rates do go up I can put in extra to cover it. Agent fees I understand are 5%. I would obviously like to avoid that or negotiate a lower commission when I sell.

Yes appreciation is an assumption!! You make some good points but I believe the biggest deciding factor is demand. For such a central location by hospitals, schools and on the subline I believe the property will increase but yes that assumption is where the biggest risk is at. I'm okay with that. But I don't believe the 20k condos being built per year is enough to keep up with demand, especially in the better locations of dt.

Yes I bought for 650 psqft today. I really haven't seen any of the newer buildings less than 700 persq foot today on MLS in the same area so I think that is also a good sign.

My only concern is my unit really being the bottom of the barrel of this building. Smallest, having the least desirable view and lower floor. But that was the only unit that fit in my budget. I figure there is more room for profit when selling in addition to Less downpayment, less interest and less carrying costs. Also if I paid more I don't think a renter would cover costs
Hopefully it works out.
 
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Thanks cdr108! I did not post the comments you are referring to but I am following this thread. Your thoughts are appreciated.
 
buycondo said:
Its 483 square feet. There was only 8 of these units in the building so it was hard to get. Got it for 313900 after the 3k cash back on closing incentive. It was not easy to get.
Facing west on the 10th floor with a juliet balcony. I wanted east facing but this VIP phase was just incredibly difficult to get straight answers on whats available, whats being held, when prices are going up etc etc. Apparently cash back incentive is gone, prices are up, its 85% sold and will likely have very few units left when public according to the guy who processed my paperwork.

I have 10 days to cool but I think I will keep it. Its facing west but I"m on the southern part of the building and Karma will be 32m away and slightly more north than YC so I think my unit will be clear of karma looking straight ahead. I think I got a good price and if I decide to rent it should cover carrying costs.

Other than this unit I came across one 1bdrm for 335k at 519sq ft juliet balcony 12th floor and after that it was 345k and up.

I'm not sure if it is better to buy a pre con or close an assignment at a great price. My thinking is if you get a great price on an assignment and rent it 4years down the road you have appreciation plus equity. With a prebuild you just get appreciation for 4 years. I guess there are pros and cons to both but thats for another thread.
Click to expand...

IMO there's no money in precon anymore. Assignment might be a better deal but you need a lot of money up front. I still think the best option (at least right now) is to buy resale...
 
buycondo said:
Yes I calculated carrying costs based on a mortgage after 20% down on a 3% variable. The total carrying cost I estimate at 1610 after maintenance and estimated property tax. I'd estimate rent for a small bedroom would be 1600 to 1700 in that area by 2018, actually it already is in that range today.

Yes Closing costs would probably be 10 to 13k. I'm aware of that. I may sell on assignment as that is free as per incentive but if I do close and interest rates do go up I can put in extra to cover it. Agent fees I understand are 5%. I would obviously like to avoid that or negotiate a lower commission when I sell.

Yes appreciation is an assumption!! You make some good points but I believe the biggest deciding factor is demand. For such a central location by hospitals, schools and on the subline I believe the property will increase but yes that assumption is where the biggest risk is at. I'm okay with that. But I don't believe the 20k condos being built per year is enough to keep up with demand, especially in the better locations of dt.

Yes I bought for 650 psqft today. I really haven't seen any of the newer buildings less than 700 persq foot today on MLS in the same area so I think that is also a good sign.

My only concern is my unit really being the bottom of the barrel of this building. Smallest, having the least desirable view and lower floor. But that was the only unit that fit in my budget. I figure there is more room for profit when selling in addition to Less downpayment, less interest and less carrying costs. Also if I paid more I don't think a renter would cover costs
Hopefully it works out.
Click to expand...

Wouldn't worry about the size. It's probably a good thing to have the smallest, cheapest unit. I personally don't see much money in this unit but that's just me. In a perfect world, how much do you think the unit will be worth in 5 years?
 
TheKingEast said:
IMO there's no money in precon anymore. Assignment might be a better deal but you need a lot of money up front. I still think the best option (at least right now) is to buy resale...
Click to expand...

Yes I bought an assignment last year and really was inexperienced. I did not know I had to have the seller's profit and original downpayment upfront. So I ended up having to put all my capital into it. Also I was not aware of how much closing costs or agent fees when selling really were. The only thing I did know was that I was getting a good price on the unit.

Would I do it again? Probably not but my saving grace is that if I sold it today even after all those fees I would come out ahead by 10k or so. I am debating selling it just to get all my capital back and look for more pre cons that I like. Something I am still deciding.

I'm not quite sure I agree with you from an investors point of view. I think both pre con and assignment allow you to get a better initial price than resale. Resale is usually on MLS which creates too much competition for any valuable unit.
 
buycondo said:
Yes I bought an assignment last year and really was inexperienced. I did not know I had to have the seller's profit and original downpayment upfront. So I ended up having to put all my capital into it. Also I was not aware of how much closing costs or agent fees when selling really were. The only thing I did know was that I was getting a good price on the unit.

Would I do it again? Probably not but my saving grace is that if I sold it today even after all those fees I would come out ahead by 10k or so. I am debating selling it just to get all my capital back and look for more pre cons that I like. Something I am still deciding.

I'm not quite sure I agree with you from an investors point of view. I think both pre con and assignment allow you to get a better initial price than resale. Resale is usually on MLS which creates too much competition for any valuable unit.
Click to expand...

That's tough. I have purchased an assignment before and needed to come up with a lot of money but this was 5+ years ago so the downpayment wasn't as large as what it would be now and the value skyrocketed since I bought right when it looked like the market was going to crash and a lot of people were trying to get out of deals. If I had more money I would be a millionaire right now because there were so many deals.

Yea, the agent doesn't tell you how much money you're actually going to lose. All they tell you is how good of a deal you're getting. There are a lot of costs that come with buying and selling property. Some of it is downright ridiculous but it's a reality. It's really difficult to buy assignments now because builders want a lot of upfront money nowadays and that's just too much $ to spend. There is the occasional deal, though.

As far as resale vs precon... Resale is not that far off from precon prices now. You actually see what you get and can investigate the building. That's something you can't do with precon. The boom has created a number of poorly built buildings. You buy precon you have no idea what you're getting. It's really a crap shoot. 25% down plus 20K closing costs at registration is enough to keep me away. Then when you consider that condo prices are on the way down, I think there are more deals in resale.

If you have the money now. I'd personally say resale. If you don't...then precon would be better option.
 
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