Apparently Real Estate is all about Location. If you've heard it once -- you've heard it a thousand times, the most important thing to know about Real Estate is " Location / Location / Location !!! "
As to the second most important thing -- in the world of Condominiums that factor really ought to be " Builder / Builder / Builder, " -- or like Butch Cassidy and the Sundance Kid used to continually ask " Who Are Those Guys? "
Go into any sales office on any given weekend, and the one thing you'll probably notice is that they're all relatively the same. As the actual building of the property doesn't usually start until the property is 65% to 70% SOLD (when the financing usually kicks in), most properties are sold visa vie drawings, model suites and marketing campaigns. In other words, the vast majority of new condominium Buyers out there are forced to buy into an idea and/or concept of what might be -- long before they really know what they'll be getting. Given the recent stregnth of our market, this hasn't been all bad, given that many condominiums have gone up in value by as much as 20% to 25% prior to actual occupancy (ie./ as it often takes 2.5 to 3 years to actually complete some of these condominium projects -- the market has often driven the relative value of these properties up quite substantially during this interim period of time).
Nonetheless, if you take into account that so many of these sales centre's look alike, make similar promises, and require a potential Buyer to make decisions based solely upon diagrams and/or model suites etc... -- is there any real way for a Buyer to differentiate up front (before the property is built) between the really great proposition and the one that may well under-deliver and/or under-perform initial expectations. Of all the factors one could try and take into account, the one that really matters is who the Developer / Builder might be. That said -- given that most sales centre's really don't and/or can't offer very much more than a tertiary and/or superficial description of the players involved in their project, where can a Buyer turn to, to get this vital if not key information? For better or for worse, the only practical source of information is probably a third party such as someone within the Development industry itself and/or someone with the Real Estate profession. Mind you, as many Real Estate practioners' aren't really up to speed on what differentiates the various Developers / Builders from one another -- this third party counsel really ought to be someone who knows and cares about the Condominium arena, and who is consequently well informed about the myriad options out there. Hence, this really ought to be someone who's been in the industry for some time, and consequently has first hand knowledge of most of the projects out there -- and what in consequence differentiates one Developer / Builder from another.
As someone who started his career as a sales representative for numerous Condominium Developers, and has in-turn maintained a close eye on this portion of the market, I can tell you without hesitation that there are in fact HUGE differences between how Developers operate, how Builders' build, and how in-turn their projects turn out. As a general matter of course, I consequently tend to try and steer my clients towards maybe 10 or 12 of the better entities out there, as opposed to having them try and consider everything. Given that there can and often are 100 to 200 projects going on within Toronto at any given time, this (as it implies) suggests that their are really only a small percentage of Developers / Builders -- who are creating the kinds of projects that will genuinely out-perform (no matter what the under-lying market conditions are) / that won't invariably create a project riddled with deficiencies / and that will at least come close to providing the kind of end product initially promised by the sales and/or marketing staff.
If all of this sounds a little daunting and/or frightening (esepcially the part about talking to a Realtor) -- you can always try and talk to someone (anyone) who has previously bought a property built by the self-same Developer / Builder you are currently considering. If in fact the property you're considering isn't the Builders' first foray into the Condominium market - this shouldn't be too hard to accomplish, as most builders will high-light any projects they have built in the past. If on the other hand, you're chosen project is in fact a " first-time " foray into the Development arena, you may well have to do a little more digging before finding the kinds of resources that can and might vouch for some of the participants in question. If you don't and/or won't do your' home-work, I guess it really will be a matter of " Caveat Emptor " and/or Luck -- but for those of you who don't really believe in Luck, and thus are more than willing to be a little leary (especially up-front) a little bit of home-work might well go a long way. Failing that -- you could always call me, and as long as it's a project (Developer / Builder) I have some knowledge of, I'd be happy to provide some third party feedback. Hey -- and if your'
worried about cheating on your' home-work, don't be -- I promise I won't tell anyone!
Thomas Hoeher (416) 879-1076
Monday, June 23, 2008
Monday, June 16, 2008
A few words about " Maintenance fee's. "
MAINTENANCE FEE'S -- Here's a subject not too many people like to talk about. Like taxes however, here's also a subject you really ought to pay some attention to prior to buying a condominium (new and/or resale).
Like a lot of things in life, maintenance fee's are and will always remain a necessary evil and/or component of the Condominium proposition. Most often these monthly charges accrue as a function of the following:
1) Property taxes are usually excluded except in the case of Co-ops' and/or Co-ownership properties which are in essence a variant form of the Condominium concept (ie/ people own shares in a property as opposed to owning title to it).
2) Heat
3) Hydro
4) Water
5) C.A.C. (Central Air Conditioning)
6) Building Insurance
7) Cable and/or Television feeds
8) Common Element(s) maintenance and,
9) Parking (associated fee's to maintain parking areas / facilities etc...).
Given that your monthly condominium fee's go to some portion of the above, the first thing one ought to consider when contemplating this portion of a condominiums monthly fee's is what exactly do your Condominium Fee's cover? If they cover the majority of the fore-going, then it may well be ok if the fee is a little higher. If and where they cover only a minimum of the aforementioned costs -- then in all fairness, these fee's ought to be somewhat lower (relatively speaking).
As a Realtor and/or someone who has this discussion with clients all the time, I think the key issue when purchasing new and/or used, is to decide what it is YOU genuinely want out of the condominium life-style, and what is it YOU in turn are prepared to pay for. Do you want and/or need a lot in the way of shared facilities? Do you want and/or need " concierge services? " Are you willing to pay for the maintenance associated with landscaping and/or a parkette? If you can decide up-front and/or before you purchase what it is YOU'RE genuinely looking for -- it becomes much easier to gage these monthly fee's ahead of time -- and hence much easier to live with the reality of these monthly payments when in fact they become pay-able.
As a cautionary warning -- should you be contemplating the purchase of a NEW condominium from a Builder / Developer, keep in mind that the initial budgeted maintenance fee's (usually declared as a small stipend per square foot) are just that, a GUESTIMATE provided by the Builder / Developer to give you a general sense as to what these fee's might be upon completion. As anyone who's ever purchase new will tell you -- these fee's are invariably almost always under-stated and/or under-estimated, and in consequence do rise (and often quite appreciably) within a short period after title transfer and/or registration. ie./ Given that a Builder / Developer has to provide a budget within the condominium documents that attend the purchase of any new property, it is within his or her capacity to manipulate this aspect of the budget any way he or she likes. In other words -- should a Builder / Developer deem it preferable to quote an artificially low figure (to entice sales) it is within their ability to alter the budget to accomodate this misconception. In consequence -- as a general rule, it may well be prudent to be somewhat dubious and/or cautious about any figures which get stated right up front. Given that the Builder / Developer isn't legally accountable for these initial figures, it's probably a good idea not to rely and/or depend upon the voracity (or truthfulness) of these initially stated numbers.
Another thing one probably ought to take into account right up front, are the potential implications of any drammatic rise in maintenance fee's going forward. For example, if you're buying a condominium that's roughly 1,000 sq. feet in size, and the stated maintenance fee is 35 cents / sq. foot, what will happen to the valuation of your' property should these fee's indeed drift upwards. At present you're estimated monthly fee is $350.00 per month / at 50 cents per sq. foot it becomes $500.00 per month / and should it ever reach 75 cents per sq. foot -- you'd be obligated to pay $750.00 per month. As you can see -- what doesn't sound like a lot on a per sq. footage basis can and often will have some drammatic effects dependent upon just how large your' condominium is. Moreover -- when the fee's start to reach these higher than average numbers, the costs of this monthly burden can and often do start to have an impact upon the relative value of your' property and/or what you might be able to get for it when you re-sell. As is especially the case in a number of larger / older condominiums within Toronto, once these monthly maintenance fee's exceed a certain thresh-hold (comfort level) the resale prices of these properties start to drift lower to accomodate the higher debt burdens associated with the higher maintenance fee's. If there is an " Achilles Heel " within the condominium equation -- this may well be it.
If and where the condominium is being purchased primarily as an investment, this becomes an even more critical concern in some respects, as any rise in the maintenance fee in essence changes the nature of the speculative equation (especially as relates to both monthly income and any potential profits which might accrue from an eventual sale). Hence, when buying for investment purposes, this aspect of the purchase should become a critical element in evaluating the potential utility and/or profitability of the condominium.
Despite the comparative pain associated with maintenance fee's -- which to some extent mimic taxes in this regard, the key then is in knowing what one is willing to pay, and then taking means to mitigate and/or minimize against any associated pain. As much as this isn't always a key consideration for a lot of people right up front (people who understandably focus more upon features & finishes / relative size / and location etc....) just like the fore-going, maintenance fee's will ultimately have a huge effect on your condominium experience. Mitigate them where-ever possible and/or feasible, and the long-term pay-back could be huge. Think of it as the difference between filling up a large S.U.V. on a weekly basis versus filling the tank of a smaller Volkswagen Beetle. If the weekly savings at the pump don't bring a smile to your' face -- the long-term residual benefits will undoubtedly have the desired effect. Needless to say he or she with the lowest monthly maintenance fee's in the Condominium world, tend to have a lot more in common with that Volkswagen owner than the driver of the S.U.V. As with a lot of things in this life (taxes and maintenance fee's etc...) Less really is More!
Like a lot of things in life, maintenance fee's are and will always remain a necessary evil and/or component of the Condominium proposition. Most often these monthly charges accrue as a function of the following:
1) Property taxes are usually excluded except in the case of Co-ops' and/or Co-ownership properties which are in essence a variant form of the Condominium concept (ie/ people own shares in a property as opposed to owning title to it).
2) Heat
3) Hydro
4) Water
5) C.A.C. (Central Air Conditioning)
6) Building Insurance
7) Cable and/or Television feeds
8) Common Element(s) maintenance and,
9) Parking (associated fee's to maintain parking areas / facilities etc...).
Given that your monthly condominium fee's go to some portion of the above, the first thing one ought to consider when contemplating this portion of a condominiums monthly fee's is what exactly do your Condominium Fee's cover? If they cover the majority of the fore-going, then it may well be ok if the fee is a little higher. If and where they cover only a minimum of the aforementioned costs -- then in all fairness, these fee's ought to be somewhat lower (relatively speaking).
As a Realtor and/or someone who has this discussion with clients all the time, I think the key issue when purchasing new and/or used, is to decide what it is YOU genuinely want out of the condominium life-style, and what is it YOU in turn are prepared to pay for. Do you want and/or need a lot in the way of shared facilities? Do you want and/or need " concierge services? " Are you willing to pay for the maintenance associated with landscaping and/or a parkette? If you can decide up-front and/or before you purchase what it is YOU'RE genuinely looking for -- it becomes much easier to gage these monthly fee's ahead of time -- and hence much easier to live with the reality of these monthly payments when in fact they become pay-able.
As a cautionary warning -- should you be contemplating the purchase of a NEW condominium from a Builder / Developer, keep in mind that the initial budgeted maintenance fee's (usually declared as a small stipend per square foot) are just that, a GUESTIMATE provided by the Builder / Developer to give you a general sense as to what these fee's might be upon completion. As anyone who's ever purchase new will tell you -- these fee's are invariably almost always under-stated and/or under-estimated, and in consequence do rise (and often quite appreciably) within a short period after title transfer and/or registration. ie./ Given that a Builder / Developer has to provide a budget within the condominium documents that attend the purchase of any new property, it is within his or her capacity to manipulate this aspect of the budget any way he or she likes. In other words -- should a Builder / Developer deem it preferable to quote an artificially low figure (to entice sales) it is within their ability to alter the budget to accomodate this misconception. In consequence -- as a general rule, it may well be prudent to be somewhat dubious and/or cautious about any figures which get stated right up front. Given that the Builder / Developer isn't legally accountable for these initial figures, it's probably a good idea not to rely and/or depend upon the voracity (or truthfulness) of these initially stated numbers.
Another thing one probably ought to take into account right up front, are the potential implications of any drammatic rise in maintenance fee's going forward. For example, if you're buying a condominium that's roughly 1,000 sq. feet in size, and the stated maintenance fee is 35 cents / sq. foot, what will happen to the valuation of your' property should these fee's indeed drift upwards. At present you're estimated monthly fee is $350.00 per month / at 50 cents per sq. foot it becomes $500.00 per month / and should it ever reach 75 cents per sq. foot -- you'd be obligated to pay $750.00 per month. As you can see -- what doesn't sound like a lot on a per sq. footage basis can and often will have some drammatic effects dependent upon just how large your' condominium is. Moreover -- when the fee's start to reach these higher than average numbers, the costs of this monthly burden can and often do start to have an impact upon the relative value of your' property and/or what you might be able to get for it when you re-sell. As is especially the case in a number of larger / older condominiums within Toronto, once these monthly maintenance fee's exceed a certain thresh-hold (comfort level) the resale prices of these properties start to drift lower to accomodate the higher debt burdens associated with the higher maintenance fee's. If there is an " Achilles Heel " within the condominium equation -- this may well be it.
If and where the condominium is being purchased primarily as an investment, this becomes an even more critical concern in some respects, as any rise in the maintenance fee in essence changes the nature of the speculative equation (especially as relates to both monthly income and any potential profits which might accrue from an eventual sale). Hence, when buying for investment purposes, this aspect of the purchase should become a critical element in evaluating the potential utility and/or profitability of the condominium.
Despite the comparative pain associated with maintenance fee's -- which to some extent mimic taxes in this regard, the key then is in knowing what one is willing to pay, and then taking means to mitigate and/or minimize against any associated pain. As much as this isn't always a key consideration for a lot of people right up front (people who understandably focus more upon features & finishes / relative size / and location etc....) just like the fore-going, maintenance fee's will ultimately have a huge effect on your condominium experience. Mitigate them where-ever possible and/or feasible, and the long-term pay-back could be huge. Think of it as the difference between filling up a large S.U.V. on a weekly basis versus filling the tank of a smaller Volkswagen Beetle. If the weekly savings at the pump don't bring a smile to your' face -- the long-term residual benefits will undoubtedly have the desired effect. Needless to say he or she with the lowest monthly maintenance fee's in the Condominium world, tend to have a lot more in common with that Volkswagen owner than the driver of the S.U.V. As with a lot of things in this life (taxes and maintenance fee's etc...) Less really is More!
Monday, June 9, 2008
A brief word about the current state of the market.
Given all of the un-certain and often disconcerting news from south of the border, one of the questions we as Realtors' seem to be asked a lot more often nowadays, is " what about us? " Is our market still as viable as it was this time last year, and all things being equal -- should I wait?
The first answer I usually give to this question is that the Condominium Market in Toronto, is first and foremost a MARKET. Hence, what one really has to do is judge for ones' self, the current health of todays market, the factors (current and imminent) which might affect our market going forward, and what if any trends and/or tendencies already seem to be implicit in the day to day activities of this particular market.
The discouraging thing for many people looking at the Toronto Real Estate Marketplace, is that the fundamentals of our market are still quite good -- which to some extent implies we shouldn't even be having this conversation. ie./ The Job market in Toronto is still buoyant, interest rates are still at or close to their historic lows, and the relationship of supply vs. demand (and/or Buyers vs. Sellers) continues to remain more than adequate to support a strong and healthy market going forward. Hence -- if there is an issue (and there definitely seems to be one) it's more an issue of what is happening south of our border (in the U.S.A.) as opposed to anything inherently amiss within our own market.
Virtually every day we as Canadians (Torontonians) are inundated with bad news from the U.S. about ever increasing rates of fore-closure, erroding Real Estate values, and the resultant stories of pain and anguish these issues inevitably create for those affected. In other words, with this dark cloud hanging over the U.S. market, it becomes inevitable that their collective nightmare becomes the back-drop to our own sense of things at home, and that despite some very sound fundamentals, people here are starting to question what might befall our own marketplace going forward. At this stage then -- our only real issue seems to be an issue of PERCEPTION and inturn our very real and understandable concern that these maladies may yet drift northward and begin affecting us as well.
As for the consequences of this shift in general PERCEPTION, we are in fact already feeling some of the initial effects of this condition in terms of greater sales inventory (properties for sale), an increase in the average length of time it takes to sell a property (which is now a little longer than it was even just a few months ago) and the reduced number of properties which actually ellicit multiple offers and/or sell for well above asking. In a very real way then, we've become so accustomed to the consequences of a genuinely HOT market, that even a healthy market starts to worry us. If on top of this you start to factor in the incessant litany of bad news stories emanating from the States, it's actually no wonder there's a growing feeling of trepidation in our own neck of the woods.
What to do about this? What to make of this? and/or how to proceed going forward? If in fact you are still in the market for a new home and/or need to sell a property, I think the only rational thing you can do is re-examine your REAL reasons for wanting to buy and/or sell real estate, and to frame your' future activities and expectations in consequence of same. In other words, if you're thinking of selling a property at this point, take into account the nature of what's going on at present and re-calibrate your' expectations accordingly. If on the other hand, you genuinely need and/or want to get into a property -- keep in mind that the fore-going developments are in fact working in your' favor, which gives you an enhanced capacity to negotiate a better deal on your' own behalf.
As for recommendations, I don't know that I'd be arguing in favor of any kind of heavy concerted speculation at this point, but if what you're seeking is a principle residence and/or a condominium to live in yourself, I don't know that the current situation should constitute a problem and/or deterrent. As I tell most of my clients, despite any short-term and/or interim problems which may befall our market (and markets always endure changes -- positive as well as negative) I think our City still has enough going for it to assure that future real estate valuations will be higher in 5 to 10 years time than they are right now. In other words, as long as you are still in this for the long haul, and not just in the market to make a quick buck etc... I'm still fairly convinced that you're more than likely to be better off in Real Estate in 5 to 10 years than you are right now. Moreover, as long as you buy smart and buy well (the right kinds of properties, in the right locations etc....) odds are still pretty good that you're going to do ok no matter what the market does in the near term.
The current reality is that the U.S. is beset by a whole host of problems not directly applicable to our own circumstance, and given this utterly important distinction, our market shouldn't suffer anything like the same kinds of consequences besetting their market. The quicker this distinction is acknowledged and realized by the collective parties making up our domestic Real Estate market, the sooner this new PERCEPTION will hopefully anihilate the previous mis-conception and allow the normal market forces to once again assert their authority over what is what, and what ought to be. Although that too may well take a while, there is a sort of inevitability to it. As any climatologist will tell you, no matter how large a storm system and/or " dark cloud " might be, it will eventually give way to natural climatological forces, and when this occurs -- it's only a matter of time before the sun will re-appear.
The first answer I usually give to this question is that the Condominium Market in Toronto, is first and foremost a MARKET. Hence, what one really has to do is judge for ones' self, the current health of todays market, the factors (current and imminent) which might affect our market going forward, and what if any trends and/or tendencies already seem to be implicit in the day to day activities of this particular market.
The discouraging thing for many people looking at the Toronto Real Estate Marketplace, is that the fundamentals of our market are still quite good -- which to some extent implies we shouldn't even be having this conversation. ie./ The Job market in Toronto is still buoyant, interest rates are still at or close to their historic lows, and the relationship of supply vs. demand (and/or Buyers vs. Sellers) continues to remain more than adequate to support a strong and healthy market going forward. Hence -- if there is an issue (and there definitely seems to be one) it's more an issue of what is happening south of our border (in the U.S.A.) as opposed to anything inherently amiss within our own market.
Virtually every day we as Canadians (Torontonians) are inundated with bad news from the U.S. about ever increasing rates of fore-closure, erroding Real Estate values, and the resultant stories of pain and anguish these issues inevitably create for those affected. In other words, with this dark cloud hanging over the U.S. market, it becomes inevitable that their collective nightmare becomes the back-drop to our own sense of things at home, and that despite some very sound fundamentals, people here are starting to question what might befall our own marketplace going forward. At this stage then -- our only real issue seems to be an issue of PERCEPTION and inturn our very real and understandable concern that these maladies may yet drift northward and begin affecting us as well.
As for the consequences of this shift in general PERCEPTION, we are in fact already feeling some of the initial effects of this condition in terms of greater sales inventory (properties for sale), an increase in the average length of time it takes to sell a property (which is now a little longer than it was even just a few months ago) and the reduced number of properties which actually ellicit multiple offers and/or sell for well above asking. In a very real way then, we've become so accustomed to the consequences of a genuinely HOT market, that even a healthy market starts to worry us. If on top of this you start to factor in the incessant litany of bad news stories emanating from the States, it's actually no wonder there's a growing feeling of trepidation in our own neck of the woods.
What to do about this? What to make of this? and/or how to proceed going forward? If in fact you are still in the market for a new home and/or need to sell a property, I think the only rational thing you can do is re-examine your REAL reasons for wanting to buy and/or sell real estate, and to frame your' future activities and expectations in consequence of same. In other words, if you're thinking of selling a property at this point, take into account the nature of what's going on at present and re-calibrate your' expectations accordingly. If on the other hand, you genuinely need and/or want to get into a property -- keep in mind that the fore-going developments are in fact working in your' favor, which gives you an enhanced capacity to negotiate a better deal on your' own behalf.
As for recommendations, I don't know that I'd be arguing in favor of any kind of heavy concerted speculation at this point, but if what you're seeking is a principle residence and/or a condominium to live in yourself, I don't know that the current situation should constitute a problem and/or deterrent. As I tell most of my clients, despite any short-term and/or interim problems which may befall our market (and markets always endure changes -- positive as well as negative) I think our City still has enough going for it to assure that future real estate valuations will be higher in 5 to 10 years time than they are right now. In other words, as long as you are still in this for the long haul, and not just in the market to make a quick buck etc... I'm still fairly convinced that you're more than likely to be better off in Real Estate in 5 to 10 years than you are right now. Moreover, as long as you buy smart and buy well (the right kinds of properties, in the right locations etc....) odds are still pretty good that you're going to do ok no matter what the market does in the near term.
The current reality is that the U.S. is beset by a whole host of problems not directly applicable to our own circumstance, and given this utterly important distinction, our market shouldn't suffer anything like the same kinds of consequences besetting their market. The quicker this distinction is acknowledged and realized by the collective parties making up our domestic Real Estate market, the sooner this new PERCEPTION will hopefully anihilate the previous mis-conception and allow the normal market forces to once again assert their authority over what is what, and what ought to be. Although that too may well take a while, there is a sort of inevitability to it. As any climatologist will tell you, no matter how large a storm system and/or " dark cloud " might be, it will eventually give way to natural climatological forces, and when this occurs -- it's only a matter of time before the sun will re-appear.
Monday, June 2, 2008
Adding Value to a New condominium Purchase.
For those of you fortunate enough to be able to consider buying a new condominium directly from a Developer, there are some very clear and striking ways to add a whole lot of value to your investment. If you are early enough to the table to still have a REAL choice amongst available units, think clearly and carefully about what it is you need and want, and then start thinking about what it is you can include and/or enccompass within your choice to make your' new home really sing as both a place to live and an investment. If you choose wisely, your' new purchase will undoubtedly out-perform in both categories.
1) (Corner Units). First off, where-ever possible -- lean towards corner properties and/or properties with more than one exposure. The principle benefit to this gambit is that it will definintely enhance the illusion and/or feeling of space within the condominium, and it will also provide much more in the way of potential views and internal light etc.... A corner unit almost invariably feels larger than a similarly sized unit without the benefit of a second wall of windows, and hence provides a much enhanced sense of space. Although this might not be as self-evident right off (while you're considering buying a unit from floorplans directly from the Developer), when and if you eventually go to resell this property -- this will be obvious to any potential Buyer and hence will undoudtedly translate into higher relative resale value.
2) (Exposure). Where-ever possible, opt for the favored exposure. As this article is being written in reference to Toronto, the obvious exposure to try and secure here is undoubtedly a Southern exposure. There is the obvious issue of the view (ie./ the City centre and the coincidental views of the Lake etc....), the associated issue of the Sun (and it's path in the sky throughout the day) and hence by implication the residual issue of potential and/or perceived value going forward. Although true that most Developers will affix a premium to their south-facing inventory (and sometimes aggressively so), the reality still remains that most Buyers (and by this I mean resale Buyers) may well focus exclusively on south facing units for all of the reasons afore-mentioned. Hence -- especially in relation to larger more expensive units, and to a lesser extent all units in general, the south facing units are and will remain the premium units -- and are in consequence the units to opt for.
3) (Elevation). Moving in lock-step with the issue of exposure, is obviously the associated issue of elevation and/or height above ground. As this too is an element that will likely effect the nature of everything we've been talking about to this point (ie./ namely views, sunlight, and an inner sense of drama etc....) it is again one of those elements that invariably effects the nature and value of a property going forward. Hence -- depending upon the premiums the Developer will be charging for a units' relative height above ground (and this can range anywhere from a couple of thousand dollars to 10 or 20 thousand per floor), whenever and where-ever possible or allowed by the budget, this too is an issue that ought to be maximized within the Buying equation.
4) (Parking). Although this would seem obvious, I am always amazed at how often Buyers choose not to purchase parking based solely upon the issue of not having and/or wanting to get a vehicle themselves. Although this is laudible in and of itself, the truth remains that without a parking spot, a condominium (any condominium) is always hurt in terms of it's ultimate and/or eventual resale value. Given that most Developments can only provide parking for somewhere in the visinity of 65% to 75% of their residents -- the argument by most sales people and Realtor's has been to down-play the issue of parking (at the time of purchase) arguing that the potential Buyers' for such a property are all those people out there who also don't have a vehicle. While this sounds reasonable in principle, as a realtor -- my experience is that property's without parking are way harder to sell, usually take much longer to resell, and virutally always sell for an appreciable discount to other units (with parking) within the self-same building. Even if un-necessary and/or un-needed by a Buyer throughout his own occupancy of a unit, parking can always be leased and/or rented and the proceeds used against maintenance fee's etc... Moreover -- where condominiums may well have doubled in value in Toronto over the past 8 to 10 years etc..., the value of parking has increased somewhere in the vicinity of five to six fold. Hence -- in terms of it's investment pay-back and/or capacity to appreciate in value over time, parking (in and of itself) is definintely the better investment, and in consequence should be a component of your Real Estate portfolio.
5) (Floorplans). Finally -- lets deal more specifically with the nature of the floorplan itself. From a value perspective (which is by definition invariably a " resale " perspective) the best floorplans out there are usually those that are more square in nature and/or if rectangular -- far greater in width than depth. By this I mean less deep in terms of their dimension from their interior entrance to their exterior walls. If and where there are windows (and there always are) this will again by definition increase the number of windows inclusive to your' unit and will in-turn work much like a corner unit to enhance your' feeling of interior space, the grandeur and drama implicit in your' views, and by extension your' sense of interior space (ie./ everything will feel much larger than it really is -- in terms of the raw sqaure footage). If you're ever in a long thin unit (which constitutes the majority of condominium units out there) -- these often feel like bowling alleys, due to the minimal amount of light that enters the unit and the corresponding feeling of enclosure the closer one gets to the interior demeaning walls. Similarly, a square unit, given that it too tends to fight this perceived experience of enclosed interior space, not only opens a property up -- it inturn allows all kinds of options in respect to how one can utilize the interior space and/or place furniture etc....
Even though this is by no means an exhaustive list of elements that can and ought to be considered when contemplating a potential condominium purchase directly from a Developer, this ought to be enough of a guideline to get you thinking about your' potential purchase in a more strategic long-term way. As this isn't always easy, especially for a first time buyer and/or someone caught up in the emotion and passion of the moment (and who isn't that -- when embroiled in the process) -- it is vital if you too are going to enter the more exclusive arena of those out there buying the best units, gleaning the most from their condominium experience(s) and reaping the largest pay-back in terms of eventual resale.
Good luck -- and Happy House (Condo) Hunting!
1) (Corner Units). First off, where-ever possible -- lean towards corner properties and/or properties with more than one exposure. The principle benefit to this gambit is that it will definintely enhance the illusion and/or feeling of space within the condominium, and it will also provide much more in the way of potential views and internal light etc.... A corner unit almost invariably feels larger than a similarly sized unit without the benefit of a second wall of windows, and hence provides a much enhanced sense of space. Although this might not be as self-evident right off (while you're considering buying a unit from floorplans directly from the Developer), when and if you eventually go to resell this property -- this will be obvious to any potential Buyer and hence will undoudtedly translate into higher relative resale value.
2) (Exposure). Where-ever possible, opt for the favored exposure. As this article is being written in reference to Toronto, the obvious exposure to try and secure here is undoubtedly a Southern exposure. There is the obvious issue of the view (ie./ the City centre and the coincidental views of the Lake etc....), the associated issue of the Sun (and it's path in the sky throughout the day) and hence by implication the residual issue of potential and/or perceived value going forward. Although true that most Developers will affix a premium to their south-facing inventory (and sometimes aggressively so), the reality still remains that most Buyers (and by this I mean resale Buyers) may well focus exclusively on south facing units for all of the reasons afore-mentioned. Hence -- especially in relation to larger more expensive units, and to a lesser extent all units in general, the south facing units are and will remain the premium units -- and are in consequence the units to opt for.
3) (Elevation). Moving in lock-step with the issue of exposure, is obviously the associated issue of elevation and/or height above ground. As this too is an element that will likely effect the nature of everything we've been talking about to this point (ie./ namely views, sunlight, and an inner sense of drama etc....) it is again one of those elements that invariably effects the nature and value of a property going forward. Hence -- depending upon the premiums the Developer will be charging for a units' relative height above ground (and this can range anywhere from a couple of thousand dollars to 10 or 20 thousand per floor), whenever and where-ever possible or allowed by the budget, this too is an issue that ought to be maximized within the Buying equation.
4) (Parking). Although this would seem obvious, I am always amazed at how often Buyers choose not to purchase parking based solely upon the issue of not having and/or wanting to get a vehicle themselves. Although this is laudible in and of itself, the truth remains that without a parking spot, a condominium (any condominium) is always hurt in terms of it's ultimate and/or eventual resale value. Given that most Developments can only provide parking for somewhere in the visinity of 65% to 75% of their residents -- the argument by most sales people and Realtor's has been to down-play the issue of parking (at the time of purchase) arguing that the potential Buyers' for such a property are all those people out there who also don't have a vehicle. While this sounds reasonable in principle, as a realtor -- my experience is that property's without parking are way harder to sell, usually take much longer to resell, and virutally always sell for an appreciable discount to other units (with parking) within the self-same building. Even if un-necessary and/or un-needed by a Buyer throughout his own occupancy of a unit, parking can always be leased and/or rented and the proceeds used against maintenance fee's etc... Moreover -- where condominiums may well have doubled in value in Toronto over the past 8 to 10 years etc..., the value of parking has increased somewhere in the vicinity of five to six fold. Hence -- in terms of it's investment pay-back and/or capacity to appreciate in value over time, parking (in and of itself) is definintely the better investment, and in consequence should be a component of your Real Estate portfolio.
5) (Floorplans). Finally -- lets deal more specifically with the nature of the floorplan itself. From a value perspective (which is by definition invariably a " resale " perspective) the best floorplans out there are usually those that are more square in nature and/or if rectangular -- far greater in width than depth. By this I mean less deep in terms of their dimension from their interior entrance to their exterior walls. If and where there are windows (and there always are) this will again by definition increase the number of windows inclusive to your' unit and will in-turn work much like a corner unit to enhance your' feeling of interior space, the grandeur and drama implicit in your' views, and by extension your' sense of interior space (ie./ everything will feel much larger than it really is -- in terms of the raw sqaure footage). If you're ever in a long thin unit (which constitutes the majority of condominium units out there) -- these often feel like bowling alleys, due to the minimal amount of light that enters the unit and the corresponding feeling of enclosure the closer one gets to the interior demeaning walls. Similarly, a square unit, given that it too tends to fight this perceived experience of enclosed interior space, not only opens a property up -- it inturn allows all kinds of options in respect to how one can utilize the interior space and/or place furniture etc....
Even though this is by no means an exhaustive list of elements that can and ought to be considered when contemplating a potential condominium purchase directly from a Developer, this ought to be enough of a guideline to get you thinking about your' potential purchase in a more strategic long-term way. As this isn't always easy, especially for a first time buyer and/or someone caught up in the emotion and passion of the moment (and who isn't that -- when embroiled in the process) -- it is vital if you too are going to enter the more exclusive arena of those out there buying the best units, gleaning the most from their condominium experience(s) and reaping the largest pay-back in terms of eventual resale.
Good luck -- and Happy House (Condo) Hunting!
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