Wednesday, May 15, 2013

Humber Bay Shore Condos Provide strong ROI

For those who are concerned about a "bubble" there needs there needs to be an excess of inventory that causes Toronto condominium to go vacant ( without a tenant ). There seems to be a continuing population growth in Toronto, Ontario that IMHO is summed up as safe have and educational / vocational opportunity.

This is borne out by many years of competitive markets not only for condominium purchasers but also renters.  New buildings  ( mini communities IE Beyond the Sea, Windermere by the Lake or Eau de Soliel ) are attracting buyers worldwide. Stable and Low Mortgage Rates are just feeding the buying.

The rental market in Toronto condominiums is heating up, with increasing numbers of units being leased rather than sold and rents continuing to rise in the first quarter of 2013, an analysis by the market research company Urbanation suggests.
There were 31 per cent more condo units leased in the first quarter than a year ago, Urbanation found, and rents were up 4.4 per cent, a gentler jump from the 5.9 per cent increase that occurred between the first quarters of 2011 and 2012 but still a significant rise, said Pauline Lierman, Urbanation's director of market research.
The average rent was $1,856, or $2.33 per square foot, in the first quarter compared to $2.11 in Q1 2011.
That jump in rent of more than 10 per cent in two years is mainly a product of demand, with the most desirable units in downtown locations close to transit lines and amenities, Lierman said.
"The vacancy rate is barely over one per cent for rental condominiums," Lierman said. "The market has remained tight."

In my own experience I have observed that condos are renting for half their purchase price divided by 100 to calculate monthly cash flow. For example at $400,000 for a well appointed two bedroom, two full bath unit, it is not uncommon to seek rents at $2,000 to $2,200 depending on building amenities. [ 400k divided by 50% then divided by 100 results in a rental of $2,000 per month ]

With average downpayments of 35 - 40% Investors can calculate a reasonable ROI   compared to keeping money in the bank or a GIC.

With restricted credit policies and aging buyer demographics larger homes eventually will fall out of favour by cost and size.  Then add in a vacancy rate near 1%,  Condo investors are looking at the upside of holding their investment long term and that is what real estate is all about. 

Would you like to invest in a few condos?   Call me. 

Wednesday, May 8, 2013

The Location Should be Secret 1926 Lake Shore

Photo Cred; Urban Toronto
It should be kept a secret because these towers that are situated at the foot of Windermere and Lake Shore, Carterra, Windermere by the Lake, NXT and Park Lake Residences are all on the East side of the Humber River Bridge.

You know that traffic bottleneck at the QEW and Lake Shore? But these buildings are all on their own traffic signals and easily access Lake Shore Boulevard with a 10 minute Drive to Union Station. 

Looking through the renderings the building will have an internal traffic roundabout with exits to Lake Shore Blvd., and Windermere.

The renderings describe the redevelopment of [Four Points by Sheraton] 1926 Lake Shore Boulevard West with two residential towers of 42 and 48 stories connected by a 4 storey podium. The proposed development would contain 847 residential units and have a floor area of over 78,600 m2, representing an FSI of 17.6 times the lot area.

Floor Plans are not yet available but I can assume they will be out shortly.

Ideal Location along the Western Beaches....

What do you think?