You can believe me when I tell you that the last thing you want to do is to buy an expensive condo from an ad!
The next to last thing that you want to do is to buy a high end condo in Toronto using a Realtor that doesn’t have the experience to know the good from the bad or ugly.
If you think that you can tell a good one from a bad one simply by inspecting it for a few minutes, think again.
Let face it, all new developments look good and they usually sound good at least until the Efficiency Audit, which is conduct not before six months after registration.
And if you think that the fact that it is a high priced condo makes it somehow a good one, you are drastically wrong and possibly fooling yourself right out of positive equity.
Here’s an example. Aura, which was just completed at the corner of Gerrard and Yonge Street boasted a $13 Million Penthouse. The building’s acclaim . . . it is the tallest residential building in the city.
So, investors see all those glitzy ads about it, prepared by high priced ad agencies, and jump in head first!
And what will you discover? Well, it’s a Canderal Stoneridge development, meaning that the quality is, at best, questionable.
You will also discover that Aura as well as College Park I and II are full of small units that were sold to speculators intending to either flip their unit or rent them out. The buildings are full of renters!
Now, there’s nothing wrong with renting out your condos for income and equity appreciation, I do that myself (I don’t “flip” condos as my investment strategy revolves around buying and paying for my principal residence and only when I have paid off my home do I seek out income properties that I will also pay off before looking for another).
I also don’t advise “flipping” as real estate is really a long term investment and when you factor in real estate commissions and income taxes you will see that there’s not much left over to cover the “risk” that you’ve accepted in the deal.
The thing that you’ve got to understand about Aura (and most Canderal buildings) is that it you would be buying into principally a “Rental” building.
Now, you’ve got to ask yourself “do I want to spend all that money on my dream home to end up living in a building that is full of renters“?
Canderal did the same thing in the earlier two buildings in College Park. I own a townhouse there (the only good investment in the development) and have used the facilities when I lived there. I can tell you that “patience” is required to stand and wait for the elevators. I just couldn’t do that every time I want to come or go from my home!
I simply can’t imagine anyone being satisfied spending $13 Million to live in a rental building. That’s what has proven accurate in both towers at College Park Condos. Masses of small rented suites below a few 4,000 square foot $3.5 Million dollar suites above. The formula simply does NOT work!
Renters abuse everything as they hold no “pride of ownership“. College Park’s facilities are always in a shambles due to abuse by renters.
Toronto has no “owner only buildings” although there are a few that gravitated that way.
I specialize in high end condos (I have an assistant that handles all my clients looking for middle market and entry level condos) and can assure you that the only way anyone can know which buildings are the right ones to spend millions of dollars to live in, is to have spent the decades that I have, visiting every condo in my area of the city (I personally only work in the downtown core).
If you are considering buying a high end condo in Toronto, the best first step that you should take is contacting me. I’m constantly in the market studying all the high end buildings and can tell you that big names (like Trump) carry big price tags but simply aren’t worth the money.
And international realtors out there, if you have clients interested in Toronto properties simply email me and I’ll be happy to work with you to insure that your clients get the best service and insider knowledge available to be able to make their own informed decisions.
The best insurance you can have coming to Toronto for high end condos is me on your team. After almost four decades I can say, in all modesty, that I know this city and all the condos and I won’t steer you wrong.
Never buy from a seller’s agent as they hold a legal (“fiduciary“) obligation to protect ONLY the best interests of their client (“Seller“) and if they knew of something wrong, they would be breaking the law to inform you unless you specifically asked the right question (they must be truthful but don’t have to volunteer any information).
I represent my clients as if I were purchasing the condo myself. I’m not on Christmas card lists of seller’s agents and that sits just fine with me. My clients love me!
So, if you are looking at Toronto as an investment destination for high end properties, call me directly at 647-667-9707 or email me at [email protected]