Monday, August 25, 2008
What's Going on " Down Below? "
Never mind that -- this is a " family oriented " condominium related BLOG, which means you're not going to get any of that -- here (sorry about that).
The issue I'm referring to visa vie this purposefully compelling title, is another one of those " un-spoken " and/or un-talked about issues implicit to the purchase of a new and/or as yet to be built Condominium: ie./ The issue of what the Builder / Developer potentially intends to do with the real estate located on the main and/or ground level of the condominium. Sometimes this area is dedicated to Lobby space, to bicycle storage and/or a mail-box room. Where there is a concierge, this area may also include some provisions (such as a counter and/or desk etc....) for same.
Alternatively -- some Developers incorporate ground floor residential units on the first floor, although such units (if included) are usually discounted to reflect some of the less than desirable aspects associated with this circumstance. ie./ Ground floor units are usually perceived as less secure (especially by women), and in consequence need to be discounted to encourage potential purchasers. Moreover, ground floor units often have less than ideal views and/or vantage points (in terms of both elevation and exposure) which also compromises their value relative to other more desirable units (ie./ anything above ground level). In other words, you're usually only likely to see ground floor residential units sold within Developments where there is something about the grounds and/or ground level area that helps to mitigate against most of these draw-backs (ie./ where there might be gardens and/or a court-yard associated with the Development etc....).
As a result -- what you have in most cases (especially those cases where the Condominium is being developed in a highly Urban area and/or on a major street / etc...) is a ground level area with a number of units dedicated as " Commercial Space. " In such cases, the Developer / Builder retains the right (privalege) to sell and/or lease these units to whomever he likes, pending certain loosely defined criteria. ie./ Usually the condominium documents will suggest that such units will be leased and/or sold to service related interests which will hopefully be of benefit to the Condominium owners (ie./ things such as Dry Cleaners, small variety stores and/or video rental outlets etc....). That said, many of these Commercial arrangements are often amongst the last to be consummated, and consequently aren't usually known about (by the initial residential purchasers) until well after they've made their own buying decisions.
What all of this means to an initial Buyer then -- is that there is some risk (however small) that the kinds of Commercial properties and/or interests that will eventually inhabit the lower floor(s) of a condominium property aren't always known about until well after the initial Buyers have taken possession. In most cases this isn't problemmatic, as long as the Condominium Developer in question remains conscientious about the kinds of Commercial tenants and/or Owners they allow into the property, but if and where this goes awry -- the consequences can be both problmemmatic and/or consequential. ie./ I know of one Developer / Builder for example who apparently made initial arrangements with the Municipal government here in Toronto to allow for a needle exchange site and methodone clinic to occupy a property within one of their buildings. Needless to say -- they never made this information available to their residential Buyers, and just sort of sprung it on them once the project was finished. Apparently, one of the concessions they made to secure the property right up front was to agree to this contingency -- which they didn't however feel obliged to share with Buyers prior to registration. Needless to say, a great many of the Buyers were upset by this, as the relative value or their units (not to mention their related quaility of life) was indeed effected by this arrangement.
Hence -- make sure to check your' Condominium Documents carefully (within your' 10 day rescission period) / grill your' Developer - Builder ahead of time / and if and when necessary -- include a condition within your' initial offer which protects you from this kind of under-handed / duplicitous behaviour. As I've stated in previous Blog up-dates, one of the critical things to consider when contemplating the purchase of a new Condominium property is the nature and reputation of the Developer(s) under consideration. It is my experience over the last 10 years or so, that the better Developers don't engage in this kind of duplicitous chicanery, where-as some of the middle tier Developers and/or their lesser-lites, can and sometimes do resort to this kind of behavior. What you don't know can indeed hurt you, and given that buying a newer Condominium is indeed like being a silent partner with a vastly complex business proposition (the construction of a large scale building), the more you know and/or can find out up front -- the better off you're likely to be. Moreover, if and when you can't know up-front what might be in store down the road, it may well be worth creating contingencies (and/or conditions / clauses etc...) within your' initial offer that can at least balance the equation somewhat. Caveat Emptor is not only a refrain for duplicitous Sellers to hide behind -- it can and ought to be a shield against some of the very real and possible issues that may lurk in the weeds just outside of the Condominium buying experience. That said -- it can only become a shield if in fact you use it. Hence -- it really ought to be one of the components of your' condominium buying arsenal, right along with your' skeptical good nature, your' critical business sense, and of course you're check-book.
The issue I'm referring to visa vie this purposefully compelling title, is another one of those " un-spoken " and/or un-talked about issues implicit to the purchase of a new and/or as yet to be built Condominium: ie./ The issue of what the Builder / Developer potentially intends to do with the real estate located on the main and/or ground level of the condominium. Sometimes this area is dedicated to Lobby space, to bicycle storage and/or a mail-box room. Where there is a concierge, this area may also include some provisions (such as a counter and/or desk etc....) for same.
Alternatively -- some Developers incorporate ground floor residential units on the first floor, although such units (if included) are usually discounted to reflect some of the less than desirable aspects associated with this circumstance. ie./ Ground floor units are usually perceived as less secure (especially by women), and in consequence need to be discounted to encourage potential purchasers. Moreover, ground floor units often have less than ideal views and/or vantage points (in terms of both elevation and exposure) which also compromises their value relative to other more desirable units (ie./ anything above ground level). In other words, you're usually only likely to see ground floor residential units sold within Developments where there is something about the grounds and/or ground level area that helps to mitigate against most of these draw-backs (ie./ where there might be gardens and/or a court-yard associated with the Development etc....).
As a result -- what you have in most cases (especially those cases where the Condominium is being developed in a highly Urban area and/or on a major street / etc...) is a ground level area with a number of units dedicated as " Commercial Space. " In such cases, the Developer / Builder retains the right (privalege) to sell and/or lease these units to whomever he likes, pending certain loosely defined criteria. ie./ Usually the condominium documents will suggest that such units will be leased and/or sold to service related interests which will hopefully be of benefit to the Condominium owners (ie./ things such as Dry Cleaners, small variety stores and/or video rental outlets etc....). That said, many of these Commercial arrangements are often amongst the last to be consummated, and consequently aren't usually known about (by the initial residential purchasers) until well after they've made their own buying decisions.
What all of this means to an initial Buyer then -- is that there is some risk (however small) that the kinds of Commercial properties and/or interests that will eventually inhabit the lower floor(s) of a condominium property aren't always known about until well after the initial Buyers have taken possession. In most cases this isn't problemmatic, as long as the Condominium Developer in question remains conscientious about the kinds of Commercial tenants and/or Owners they allow into the property, but if and where this goes awry -- the consequences can be both problmemmatic and/or consequential. ie./ I know of one Developer / Builder for example who apparently made initial arrangements with the Municipal government here in Toronto to allow for a needle exchange site and methodone clinic to occupy a property within one of their buildings. Needless to say -- they never made this information available to their residential Buyers, and just sort of sprung it on them once the project was finished. Apparently, one of the concessions they made to secure the property right up front was to agree to this contingency -- which they didn't however feel obliged to share with Buyers prior to registration. Needless to say, a great many of the Buyers were upset by this, as the relative value or their units (not to mention their related quaility of life) was indeed effected by this arrangement.
Hence -- make sure to check your' Condominium Documents carefully (within your' 10 day rescission period) / grill your' Developer - Builder ahead of time / and if and when necessary -- include a condition within your' initial offer which protects you from this kind of under-handed / duplicitous behaviour. As I've stated in previous Blog up-dates, one of the critical things to consider when contemplating the purchase of a new Condominium property is the nature and reputation of the Developer(s) under consideration. It is my experience over the last 10 years or so, that the better Developers don't engage in this kind of duplicitous chicanery, where-as some of the middle tier Developers and/or their lesser-lites, can and sometimes do resort to this kind of behavior. What you don't know can indeed hurt you, and given that buying a newer Condominium is indeed like being a silent partner with a vastly complex business proposition (the construction of a large scale building), the more you know and/or can find out up front -- the better off you're likely to be. Moreover, if and when you can't know up-front what might be in store down the road, it may well be worth creating contingencies (and/or conditions / clauses etc...) within your' initial offer that can at least balance the equation somewhat. Caveat Emptor is not only a refrain for duplicitous Sellers to hide behind -- it can and ought to be a shield against some of the very real and possible issues that may lurk in the weeds just outside of the Condominium buying experience. That said -- it can only become a shield if in fact you use it. Hence -- it really ought to be one of the components of your' condominium buying arsenal, right along with your' skeptical good nature, your' critical business sense, and of course you're check-book.
Monday, August 18, 2008
References -- that might be helpful.
Given that it's 100 degrees out there -- and I too want to get out and enjoy the last of the Summers' rays, I figured I'd offer you a number of reference options, which will hopefully expand your' capacity to ellicit some pertinent information (about construction / architecture and condominiums etc...) for yourself.
First amongst these is a programme which appears every saturday at 5:30 pm on PBS (and/or channel 18 -- if you live in the Toronto area). This old house is one of the original progenitors of the current spate of " home renovation " programs, and as such has a compelling educational aspect to it which should prove beneficial to viewers irrespective of the kind of property purchase (and/or renovation) they might be contemplating. A lot of the topics they deal with tend to be about things like structural issues, plumbing and heating up-grades and architectural styling(s) etc.... but they also deal with interior design issues, the cost benefits of certain up-grades and exterior and/or land-scapping concerns. All in all -- the show is quietly informative, informal in nature and very (very) addictive and/or habit forming (even if you don't own a hammer). They've been around for over 20 years -- and hence also publish a magazine, but the show is definitely the more appealing and compelling format in which to experience the " THIS OLD HOUSE " phenomenon.
For anyone more interested in things related to architecture, interior design, and the vast variety of condominium and/or home alternative(s) out there, two magazine's I'd highly recommend would include both Dwell Magazine (out of San Francisco) and AZURE magazine which is published right here in Toronto. Both deal with a wide array of topics via their monthly periodicals -- and hence there is almost always something of interest to the general reader. Both magazines also tend to cover a lot of what's new / interesting and/or theoretically significant in the world of Green Developments (especially as they relate to construction etc....) which again makes them significant to anyone potentially contemplating the purchase of a newer condominium. DWELL tends to venture internationally for a lot of their stories and features, where-as AZURE magazine is probably a little more domestic or Canadian in flavor -- but outside of this minor nuance, both magazines are great places to read about a lot of what is pertinent in the design, building and architectural communities.
For something a little more specific -- both in terms of subject material and bias, another magazine I'd highly recommend is " Canadian Architect magazine. " Although this periodical often times tends to be a little overly (and/or overtly) specific to the Architectural community per se, they do an Awards edition every year (in December / January) which highlights all that is best in the Canadian Archtitectural scene over the past year. As a lot of the projects which get reviewed (and awarded with praise) include newer condominium and/or housing options -- this edition should be must reading for anyone who takes their purchase of a NEWER property seriously. Despite the obvious and specific nature of this magazine, the writing and content of the articles is such that anyone (including myself) can easily comprehend same. Hence -- don't be intimidated by the nature and/or cost of the magazine, especially when and if you're hunting for the above noted (yearly) edition.
And now -- while the Sun is still high in the Sky and the Rays are still easy to attain, I'm afraid I have to go out and make myself available to all that free vitamin " D " laden radiation. Like my Broker keeps telling me, it's all about the TAN.
Oh Yah! Just in case you'd like to check out some of the attendent websites re: any of the above you can find same at,
1) This Old House -- www.ThisOldHouse.com
2) Dwell Magazine -- www.dwell.com
3) Azure Magazine -- www.azuremagazine.com, and
4) Canadian Architect Magazine -- www.cdnarchitect.com
" Shante' "
First amongst these is a programme which appears every saturday at 5:30 pm on PBS (and/or channel 18 -- if you live in the Toronto area). This old house is one of the original progenitors of the current spate of " home renovation " programs, and as such has a compelling educational aspect to it which should prove beneficial to viewers irrespective of the kind of property purchase (and/or renovation) they might be contemplating. A lot of the topics they deal with tend to be about things like structural issues, plumbing and heating up-grades and architectural styling(s) etc.... but they also deal with interior design issues, the cost benefits of certain up-grades and exterior and/or land-scapping concerns. All in all -- the show is quietly informative, informal in nature and very (very) addictive and/or habit forming (even if you don't own a hammer). They've been around for over 20 years -- and hence also publish a magazine, but the show is definitely the more appealing and compelling format in which to experience the " THIS OLD HOUSE " phenomenon.
For anyone more interested in things related to architecture, interior design, and the vast variety of condominium and/or home alternative(s) out there, two magazine's I'd highly recommend would include both Dwell Magazine (out of San Francisco) and AZURE magazine which is published right here in Toronto. Both deal with a wide array of topics via their monthly periodicals -- and hence there is almost always something of interest to the general reader. Both magazines also tend to cover a lot of what's new / interesting and/or theoretically significant in the world of Green Developments (especially as they relate to construction etc....) which again makes them significant to anyone potentially contemplating the purchase of a newer condominium. DWELL tends to venture internationally for a lot of their stories and features, where-as AZURE magazine is probably a little more domestic or Canadian in flavor -- but outside of this minor nuance, both magazines are great places to read about a lot of what is pertinent in the design, building and architectural communities.
For something a little more specific -- both in terms of subject material and bias, another magazine I'd highly recommend is " Canadian Architect magazine. " Although this periodical often times tends to be a little overly (and/or overtly) specific to the Architectural community per se, they do an Awards edition every year (in December / January) which highlights all that is best in the Canadian Archtitectural scene over the past year. As a lot of the projects which get reviewed (and awarded with praise) include newer condominium and/or housing options -- this edition should be must reading for anyone who takes their purchase of a NEWER property seriously. Despite the obvious and specific nature of this magazine, the writing and content of the articles is such that anyone (including myself) can easily comprehend same. Hence -- don't be intimidated by the nature and/or cost of the magazine, especially when and if you're hunting for the above noted (yearly) edition.
And now -- while the Sun is still high in the Sky and the Rays are still easy to attain, I'm afraid I have to go out and make myself available to all that free vitamin " D " laden radiation. Like my Broker keeps telling me, it's all about the TAN.
Oh Yah! Just in case you'd like to check out some of the attendent websites re: any of the above you can find same at,
1) This Old House -- www.ThisOldHouse.com
2) Dwell Magazine -- www.dwell.com
3) Azure Magazine -- www.azuremagazine.com, and
4) Canadian Architect Magazine -- www.cdnarchitect.com
" Shante' "
Monday, August 11, 2008
The Beauty of the Ten Day Rescission Period!
One of the absolute best things about buying a NEW condominium has to be the Ten Day Rescission period that accompanies any offer to purchase from a New Home (condominium) Developer. As mandated by LAW, this 10 day rescission period basically suggests that any new Buyer (and/or person making an offer) has 10 days (from the date of signing) in which to re-consider and/or contemplate his purchase. *** Given a recent up-date in the condominium legislation in Ontario, this time period winds up being somewhat longer then 10 days -- as the rescission period now starts once the Developer signs off on (and/or agrees to) the Offer per se. As this process normally takes 3 to 4 days (or there-abouts) -- your 10 Day rescission period is often somewhat longer than 10 days.
If it helps to clarify things -- this rescission period exists primarily because any purchase of a Condominium in Ontario by implication suggests certain rules / regulations and obligations etc.... emanating out of the communal structure and/or organization of a condominium (ie./ Rules & Regulations etc.... a condominium owner will have to abide by). The idea of the 10 day rescission period is to provide a Buyer with enough time to contemplate these rules and regulations before committing (in earnest) to the rules and regulations inclusive to his purchase. Part of this process invariably involves a Buyer having the attendent documents (which outline all of the fore-going) reivewed and over-looked by a Real Estate Lawyer. The idea being -- that once granted this capacity of review and contemplate all of the rules / obligations and potential additional costs associated with the Condominium purchase -- the Buyer will indeed have a much better sense as to what he is in fact agreeing to (both in terms of his unit purchase and the rules and regulations associated with same).
Beyond all of this of course, the law provides some attendent benefits which are also worth mentioning. First of all -- the 10 day rescission period gives a Buyer ample time in which to RE-CONSIDER the voracity of his purchase, and to double-check some of the extraneous factors which might be relevent to his or her purchase. ie./ The 10 day rescission period provides a great opportunity in which to do any " due diligence " the Buyer might wish to engage in, in terms of reviewing locations, doing some attendent research about the Builder / Developer, and/or even getting to know the neighborhood a little more intimately. Better yet, should the Buyer eventually decide against his or her potential purchase, the Buyer can opt out of the transaction simply by conveying his desire to withdraw to the Developer prior to the expiry of the rescission period (ie./ no clever excuses are in fact required to negate the offer).
Given this contingency - and the attendent ease of withdrawing from a transaction, a lot of investor's will in fact initiate transactions (early in the Sales cycle of a new project) merely as a means of removing certain units from availability (where they might otherwise get scooped and/or purchased by other potential Buyers) while they in fact make up their own minds as to whether or not they actually want to buy said unit(s). The amount of this kind of chicanery varies from project to project -- but does constitute a modest amount of the initial activity within any given Development (especially amongst investor's and/or speculator's). Hence -- it is always a good idea to consult with the Sales Staff, to get a better and/or truer sense as to what units may or may not be available at any given time.
The last thing I would say -- is that when and if the market really starts to heat up (which often makes buying a resale condominium a lot more difficult than it ought to be in terms potential multiple offers and the coincidental requirement to " waive all conditions " etc....) buying NEW is perhaps the quickest and fairest way to re-level the playing. Whenever you walk into a new sales site, the price is indeed the price, the laws in effect to protect Buyers stay in EFFECT (and don't have to be waived), and all of the emotion and stress of buying under the gun (or NOW! NOW! NOW!) are in some respect ameliorated (lessened) by the 10 day rescission period. Better yet -- if you were drinking at the time and/or temporarily " lost your mind " etc... (as often happens in the land of RESALE) -- the 10 day rescission period offers you a way to escape from " DODGE " without having to break a whole host of other laws. In a sense then -- the " ten day rescission period " tends to make the whole buying process a whole lot more even handed or fair, which in-turn makes the entire buying process a whole lot less stressful and in consequence a whole lot more manageable.
Hence -- even though it's just a LAW, it does sort of have an aesthetic beauty and/or inherent loveliness to it, which may well be worth considering when and if you have a choice betwixt NEW and/or RESALE. If " Caveat Emptor " means anything (and I'm sure it means something) -- ten days of careful deliberation probably trumps the scanty 10 minutes and/or half an hour of " due diligence " often affored the RESALE client. Yah -- it's probably no where near as exciting as shooting from the hip and/or walking a tight-rope without a net, but then again there's a reason they tie a rope to your' ankles before you get to " Bungee Jump. " Maybe if I had more time, I could figure that one out as well?
If it helps to clarify things -- this rescission period exists primarily because any purchase of a Condominium in Ontario by implication suggests certain rules / regulations and obligations etc.... emanating out of the communal structure and/or organization of a condominium (ie./ Rules & Regulations etc.... a condominium owner will have to abide by). The idea of the 10 day rescission period is to provide a Buyer with enough time to contemplate these rules and regulations before committing (in earnest) to the rules and regulations inclusive to his purchase. Part of this process invariably involves a Buyer having the attendent documents (which outline all of the fore-going) reivewed and over-looked by a Real Estate Lawyer. The idea being -- that once granted this capacity of review and contemplate all of the rules / obligations and potential additional costs associated with the Condominium purchase -- the Buyer will indeed have a much better sense as to what he is in fact agreeing to (both in terms of his unit purchase and the rules and regulations associated with same).
Beyond all of this of course, the law provides some attendent benefits which are also worth mentioning. First of all -- the 10 day rescission period gives a Buyer ample time in which to RE-CONSIDER the voracity of his purchase, and to double-check some of the extraneous factors which might be relevent to his or her purchase. ie./ The 10 day rescission period provides a great opportunity in which to do any " due diligence " the Buyer might wish to engage in, in terms of reviewing locations, doing some attendent research about the Builder / Developer, and/or even getting to know the neighborhood a little more intimately. Better yet, should the Buyer eventually decide against his or her potential purchase, the Buyer can opt out of the transaction simply by conveying his desire to withdraw to the Developer prior to the expiry of the rescission period (ie./ no clever excuses are in fact required to negate the offer).
Given this contingency - and the attendent ease of withdrawing from a transaction, a lot of investor's will in fact initiate transactions (early in the Sales cycle of a new project) merely as a means of removing certain units from availability (where they might otherwise get scooped and/or purchased by other potential Buyers) while they in fact make up their own minds as to whether or not they actually want to buy said unit(s). The amount of this kind of chicanery varies from project to project -- but does constitute a modest amount of the initial activity within any given Development (especially amongst investor's and/or speculator's). Hence -- it is always a good idea to consult with the Sales Staff, to get a better and/or truer sense as to what units may or may not be available at any given time.
The last thing I would say -- is that when and if the market really starts to heat up (which often makes buying a resale condominium a lot more difficult than it ought to be in terms potential multiple offers and the coincidental requirement to " waive all conditions " etc....) buying NEW is perhaps the quickest and fairest way to re-level the playing. Whenever you walk into a new sales site, the price is indeed the price, the laws in effect to protect Buyers stay in EFFECT (and don't have to be waived), and all of the emotion and stress of buying under the gun (or NOW! NOW! NOW!) are in some respect ameliorated (lessened) by the 10 day rescission period. Better yet -- if you were drinking at the time and/or temporarily " lost your mind " etc... (as often happens in the land of RESALE) -- the 10 day rescission period offers you a way to escape from " DODGE " without having to break a whole host of other laws. In a sense then -- the " ten day rescission period " tends to make the whole buying process a whole lot more even handed or fair, which in-turn makes the entire buying process a whole lot less stressful and in consequence a whole lot more manageable.
Hence -- even though it's just a LAW, it does sort of have an aesthetic beauty and/or inherent loveliness to it, which may well be worth considering when and if you have a choice betwixt NEW and/or RESALE. If " Caveat Emptor " means anything (and I'm sure it means something) -- ten days of careful deliberation probably trumps the scanty 10 minutes and/or half an hour of " due diligence " often affored the RESALE client. Yah -- it's probably no where near as exciting as shooting from the hip and/or walking a tight-rope without a net, but then again there's a reason they tie a rope to your' ankles before you get to " Bungee Jump. " Maybe if I had more time, I could figure that one out as well?
Tuesday, August 5, 2008
Can I Get Parking with That?
The reality of our Condominium market here in Toronto is that most of the properties available for sale thru Developers & Builders are of the smaller variety ie./ Often times 70% to 80% of the units within a proposed building project are at or under 800 square feet in size. There are a couple of reasons for this, the first being that this is where the BULK of the market resides (ie./ for the vast majority of potential condo Buyers / especially first time buyers -- pricing and affordability are of critical importance). Secondly, these kinds of units work better as potential investments. Smaller units are easier to afford up-front, their carrying costs are more reasonable (relatively speaking) and they tend to lease for more money (on a price per sq. footage basis) than larger units ie./ where-as a large 2 bedroom unit in downtown Toronto might lease for just over $2,000.00 per month -- a smaller one bedroom may well fetch $1600.00 to $1,700.00 per month. Equally important (from an investment point of view) these smaller units will tend to appreciate better (on a percentage basis) over time. Hence, for these and sundry reasons -- the condominium marketplace in Toronto is skewed towards smaller more reasonably priced units in general.
Another thing worth mentioning at this point is that virtually all new projects have a short-fall of parking spaces in relation to the number of units they're actually building. This ratio varies -- but it too is often around 70% to 80% in relation to the number of units being built. More than anything else, this has to do with the nature of construction in Toronto and the fact that Builders do face constraints in respect to what they can and can't accomodate in terms of under-ground parking spaces. Beyond the mere physical and government inflicted constraints -- parking areas are also one of the more expensive components for a Builder / Developer to construct (which again implies limitations).
As a result of this circumstance, parking spaces in Toronto are not only getting more expensive, they are also getting more difficult to secure. In a lot of cases, Developers won't even sell you a parking space unless you spend a certain (requisite) amount and/or unless you buy a specified size of property (ie./ you won't be permitted to buy parking unless you buy a property over 600 sq. feet and/or at a price point above $350,000.00 etc....).
Although this may well help to justify and/or explain the current circumstance, my advice as a Realtor is that unless you can secure a property (large and/or small) with parking -- one really ought to reconsider the proposition. Moreover, if your budget constraints don't allow for parking (which at this point in time runs around $35,000.00 per space -- on average), my advice would be to alter your' search criteria enough to enable you to factor this element into the equation. In other words, you're definintely going to NEED parking -- so do whatever you have to do, to make sure you can secure same.
If the Developer won't play ball -- WALK. If you're mortage broker won't help you accomodate the extra payment -- WALK. If the Sales people at the site and/or your own Representative (Realtor) try and persuade you to buy without parking -- WALK.
The reality of our marketplace is that everyone drives a car -- which in essence means everyone needs a place to park. If you're ever thinking of re-selling your property (and/or investment), not having parking will probably exclude 90% to 95% of your' potential Buyers. As a resale Agent, I've had clients who hated cars (didn't have one -- would never get one), didn't eat meat and donated to various " Luddite " societies -- who wouldn't let me show them condominium resale properties without parking. And Hey! if you can't trust a pro " Luddite " -- on an issue such as this, you can you trust?
In any event -- even if you don't actually need parking during your' own tenancy and/or ownership of the property, you can always lease it out and put that stipend against your' monthly maintenance fee costs. At least that way -- the parking will be there when and if you go to re-sell.
If none of this matters to you, you should also realize that without parking -- there is virtually no way you'll ever be able to solicit and/or realize multiple offers on your' property (some where down the road) no matter how crazy and/or frenzied the market might get. Hence -- in a very real way, not having parking could cost you as much as 10% to 20% in terms of potential loss(s) upon resale (ie./ the difference between getting 10% more than asking -- as opposed to 10% less than same).
Finally, if you're still not convinced, realize that within the past 10 years or so (in Toronto), condominium prices have probably doubled on average. Parking prices on the other hand have (within that same period of time) gone up by a factor closer to 5 or 6 times what they were at in 1998 / 1999 ie./ I can easily remember parking going for $5,000.00 to $7,000.00 at that time -- as opposed to the average nowadays of closer to $35,000.00 (and closer to $45,000.00 in our harbourfront). Hence, if you really want to make some money in Real Estate -- you probably ought to be buying parking instead of condominiums.
Just so you know -- Ive already asked, and not only are the Developers not amenable, I think it's against condominium laws (by-laws and/or codes) to sell parking to non-owners and/or residents.
Hence -- if like a lot of people you're on the fence re: this whole parking issue, and are contemplating fore-going that crazy $35,000.00 expense, do yourself a favor and at least re-think the issue. It's one thing if it's truly impossible and/or un-fordable, but failing that -- GET THE PARKING! Yah --it'll hurt when you're doing it, but beieve me -- it'll hurt so good when you're re-selling it.
" Zoom, Zoom, Zoom! "
Another thing worth mentioning at this point is that virtually all new projects have a short-fall of parking spaces in relation to the number of units they're actually building. This ratio varies -- but it too is often around 70% to 80% in relation to the number of units being built. More than anything else, this has to do with the nature of construction in Toronto and the fact that Builders do face constraints in respect to what they can and can't accomodate in terms of under-ground parking spaces. Beyond the mere physical and government inflicted constraints -- parking areas are also one of the more expensive components for a Builder / Developer to construct (which again implies limitations).
As a result of this circumstance, parking spaces in Toronto are not only getting more expensive, they are also getting more difficult to secure. In a lot of cases, Developers won't even sell you a parking space unless you spend a certain (requisite) amount and/or unless you buy a specified size of property (ie./ you won't be permitted to buy parking unless you buy a property over 600 sq. feet and/or at a price point above $350,000.00 etc....).
Although this may well help to justify and/or explain the current circumstance, my advice as a Realtor is that unless you can secure a property (large and/or small) with parking -- one really ought to reconsider the proposition. Moreover, if your budget constraints don't allow for parking (which at this point in time runs around $35,000.00 per space -- on average), my advice would be to alter your' search criteria enough to enable you to factor this element into the equation. In other words, you're definintely going to NEED parking -- so do whatever you have to do, to make sure you can secure same.
If the Developer won't play ball -- WALK. If you're mortage broker won't help you accomodate the extra payment -- WALK. If the Sales people at the site and/or your own Representative (Realtor) try and persuade you to buy without parking -- WALK.
The reality of our marketplace is that everyone drives a car -- which in essence means everyone needs a place to park. If you're ever thinking of re-selling your property (and/or investment), not having parking will probably exclude 90% to 95% of your' potential Buyers. As a resale Agent, I've had clients who hated cars (didn't have one -- would never get one), didn't eat meat and donated to various " Luddite " societies -- who wouldn't let me show them condominium resale properties without parking. And Hey! if you can't trust a pro " Luddite " -- on an issue such as this, you can you trust?
In any event -- even if you don't actually need parking during your' own tenancy and/or ownership of the property, you can always lease it out and put that stipend against your' monthly maintenance fee costs. At least that way -- the parking will be there when and if you go to re-sell.
If none of this matters to you, you should also realize that without parking -- there is virtually no way you'll ever be able to solicit and/or realize multiple offers on your' property (some where down the road) no matter how crazy and/or frenzied the market might get. Hence -- in a very real way, not having parking could cost you as much as 10% to 20% in terms of potential loss(s) upon resale (ie./ the difference between getting 10% more than asking -- as opposed to 10% less than same).
Finally, if you're still not convinced, realize that within the past 10 years or so (in Toronto), condominium prices have probably doubled on average. Parking prices on the other hand have (within that same period of time) gone up by a factor closer to 5 or 6 times what they were at in 1998 / 1999 ie./ I can easily remember parking going for $5,000.00 to $7,000.00 at that time -- as opposed to the average nowadays of closer to $35,000.00 (and closer to $45,000.00 in our harbourfront). Hence, if you really want to make some money in Real Estate -- you probably ought to be buying parking instead of condominiums.
Just so you know -- Ive already asked, and not only are the Developers not amenable, I think it's against condominium laws (by-laws and/or codes) to sell parking to non-owners and/or residents.
Hence -- if like a lot of people you're on the fence re: this whole parking issue, and are contemplating fore-going that crazy $35,000.00 expense, do yourself a favor and at least re-think the issue. It's one thing if it's truly impossible and/or un-fordable, but failing that -- GET THE PARKING! Yah --it'll hurt when you're doing it, but beieve me -- it'll hurt so good when you're re-selling it.
" Zoom, Zoom, Zoom! "
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