Toronto Real Estate Blog

As rental rates rise some landlords are selling off apartments one by one, but watch out for that tax bill

By Jane Gadd – Globe and Mail

Imagine owning a home in Forest Hill for a mere $121,000.

Okay, it’s only a 400-square-foot bachelor apartment. But it’s solidly built, well-maintained and quiet. And the location is unbeatable — a dead-end street lined with Sixties-vintage low-rise apartment buildings and single-family homes off Spadina Road, in a hidden enclave of boutiques and cafés known as Forest Hill Village.

For less than $300,000 you can have a two-bedroom apartment with more than 900 square feet in the same 45-year-old building on Montclair Ave., a short walk from the Bathurst West subway station and St. Clair Avenue. To buy something that size in a new condo building in the area would cost more than twice that much, and you’d have to wait for it to be completed.

There must be catch, you say. Well, yes and no.

Hanya Kizemchuk, inside a renovated-for-sale kitchen at 60 Montclair Avenue in Forest Hill Village, says older buildings like hers have some advantages over newer condos, including thicker walls for more soundproofing.

The building on Montclair is part of a new wave of “co-ownership” ventures in which rental apartments are sold off one by one as they become vacant, resulting in a mix of owners and tenants within the same building.

“The buildings are a little bit older, but they’re in some of the best locations in the city,” says Hanya Kizemchuk, the owner of the Montclair building, which has been in her family for 40 years.

Buildings like hers were built solid and soundproof, she explains.

“There’s 12-inch concrete between units rather than the new standard of eight inches… The walls are plaster on mesh, not drywall.”

Ms. Kizemchuk has already sold six units in her 48-unit building, all of them to outsiders who bought them as pied-à-terres after tenants had moved out.

Units have been offered to tenants first, she says, and they cannot be evicted for the purposes of selling units, but none have taken up the offer so far.

The last time Toronto experienced the co-ownership trend, in the 1980s, the provincial government became alarmed about the loss of rental housing and curbed the practice by passing the Rental Housing Protection Act. The explosion of new condo development that followed prevented the trend resurfacing when Mike Harris’s government repealed the act in 1997.

But now that condo prices are going through the roof and landlords are facing the rent-depressing effects of a 4% vacancy rate, co-ownership is back.

For buyers, it offers an opportunity to buy a no-frills living space that they can upgrade as much as they want and rent out if they choose.

For landlords, it’s a way to make additional money on their properties in a flat rental market at a time when the city is not approving total condo conversions.

And for tenants, it means a chance to buy their apartment if they have the money. If not, they face the prospect of living down the hall from people who own their units and get to vote on the building’s board of directors, while tenants have to speak through their landlord.

The tenants on Montclair weren’t thrilled by the co-ownership move, but have accepted it, Ms. Kizemchuk says. “I’ve known some of them for 10 years. Once I comforted them and said nobody can throw you out, you’re protected under the Tenant Protection Act, they felt better about it.”

However, the city of Toronto has concerns.

“The real problem for us is it doesn’t require any planning act approval to go from the rental form to something quite different,” says Patrick Lee, manager for community policy at the city. “Going condo needs formal approval, and all is above-board and out in public. But with co-ownership, it’s just a matter of going into the [Ontario Municipal Affairs and Housing] ministry office and registering a business, and you go into a different type of tenure.”

Martin Rumack, a Toronto lawyer with a long involvement in co-ownerships who teaches a course on the topic for agents of the Toronto Real Estate Board, explains the differences between condo ownership, co-operative ownership and co-ownership like this: With condos, you purchase a unit in a building and gain a percentage interest in the common areas. You receive a deed to the unit you have purchased.

With co-ops, you purchase shares of a private corporation that owns and manages the building. You also receive a leasehold occupancy interest in a specific unit and the exclusive right to use it. You do not receive a deed; you receive shares in the corporation.

In a co-ownership setup, you purchase an undivided percentage of the building that is registered on title (your name is on the legal ownership document), along with the exclusive right to occupy a specific unit — subject to the Tenant Protection Act (you cannot kick out sitting tenants). You receive a deed setting out the percentage interest you have acquired.

“Co-ownership is a hybrid between co-op and condo,” Mr. Rumack says.

With condos and co-ownerships (but not co-ops), you can mortgage your interest in the property without getting consent from the property’s board of directors. However, only a few finance companies will provide mortgages for co-ownership units. The big banks steer clear of them, but trust companies and credit unions will provide mortgages, though usually at a rate a couple of points higher than the banks’ mortgage rates.

A unit owner needs approval from a building’s board of directors to resell his unit, but Mr. Rumack says this is generally a “rubber-stamp” process.

Since the 1980s, the number of co-ownership buildings in Toronto had remained steady at about 30 until two years ago. Now there are four or five new ones that Mr. Rumack is aware of, including Montclair and another seven-storey building one block north of it in Forest Hill Village.

“It’s not a stampede, not a gold rush,” Mr. Rumack says. “There’s a bit of startup.”

Mr. Lee, the manager for Toronto’s community policy, says the city is concerned that landlords may see co-ownership as the first step in getting full condo approval. “People go from rental to co-ownership, then they cry the blues about there being no financing available, or needing to settle estate matters. ‘Please let us go to condo,’ ” he says. “They think they can exert more pressure on us.”

He wants landlords to know that that is not going to be the case. In fact, the city plans to approach the province to tighten up the process and make sure buyers understand that co-ownership is not a step toward condo status, Mr. Lee says.

Ms. Kizemchuk says she knows she couldn’t get approval to convert her whole building into condos, but wants to provide ownership as an alternative and to share the investment potential of units in the building.

Before she launched the venture, she undertook a $400,000 upgrade of the building’s envelope and mechanical systems to ensure that buyers would not face surprise charges later for building maintenance.

While she had intended to do a basic renovation on all the for-sale units, changing the kitchen counters and bathroom fixtures but keeping the parquet floors and the basic room configurations, she found that some buyers were content to buy them as is and bring in their own renovators.

“My objective is to clean the places up,” she says. “If you want to blow your brains out making it high-end, you can do that.”

She says she doesn’t have the money to put in granite or marble, and in any case that’s a matter of taste and it would be wasteful to change things only to have the buyer rip them apart again.

“We’re all in this to make a buck, and I’m happy to pass on the opportunity to add value,” she says. She acknowledges the co-ownership trend will lead to “some flip buildings” — where a lot of investors buy just to resell and never move in — but she adds, “Mine won’t be one of them.”

One factor that may deter investors from co-ownerships is high unit taxes and maintenance fees. On Montclair, unit owners will have to pay combined tax and maintenance fees of $5.02 a square foot — close to $700 a month for a two-bedroom. About 40% of that is property tax.

The city taxes rental buildings at a rate 3.69 times higher than condos, partly on the rationale that these are investor-held buildings. Mr. Lee says the gap will be narrowed over the next 15 years to 2½ times higher, but that the city continues to view the co-ownership buildings as rental for tax purposes, and he wonders “if, indeed, people know what they’re getting into.”

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From The Condo Guide Magazine

Neoset Furniture is a unique concept in condo furniture, one that will enhance the way you use your home. It’s not just a showroom of high-quality furnishings. It’s not simply a design service that helps create a plan to furnish your living space. Neoset Furniture offers customized customer service with an impressive selection of great, modern pieces and professional designers to create a solution for your needs. The results are stylish, functional rooms that accommodate your lifestyle.

Your home should be an expression of who you are, and should provide comfort and convenience. Neoset works with your style, drawing from collections that cover every room in your house. With great options of colours and finishes, pieces work together, seamlessly creating a cohesive look. Pieces make a statement, they don’t limit you, they work well together. With Neoset, contemporary design flows through your home creating a gorgeous designer-detailed look.

Neoset doesn’t simply focus on main pieces and focal points, it offers an entire package – storage solutions are part of the overall design. From basic shelving and television consoles, to wall units and entire shelving systems, elements are finished with great accents and gorgeous hardware. You won’t be purchasing stand-alone pieces that will have you searching the city for a satisfactory match.

Furnishing a home is often a three-part task. First, you source your furniture, then design your space, and finally you assemble and install all the pieces. Neoset has changed that to a much easier system. First, you work with a designer to create your ideal space, then they deliver, install and assemble everything, and finally, you sit back and enjoy. Neoset has made it that easy.

You would imagine that, with impeccable customer care throughout the entire process, this kind of service would come with a hefty price tag. It doesn’t. Neoset offers sensational value, allowing you to comfortably complete your entire project. Pricing includes delivery and installation. The process really is as easy as it sounds. With five stores across the GTA to serve you, it’s easy to find out for yourself how Neoset Furniture can transform your home.

The Condo Guide Magazine is an excellent source of housing information for those looking for information on new condos in Ontario, Canada. We offer the most up-to-date information on new condominiums across the greater Toronto area.

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Fashion district loft project full of innovative spaces

The Globe and Mail

When Freed Developments and Lash Development Corp. first acquired the corner lot at 455 Adelaide St. West, they didn’t quite know what to do with it. Then a team from Core Architects Inc. came up with a unique design: an L-shaped building with a variety of innovative spaces, including townhouses on the ground level and lofts above.

“There are a plethora of unique floor plans,” sales manager Craig Emond says of the project named 455 Adelaide West, and adds that many of them haven’t been seen in other projects. He notes that the developers also encourage buyers to help define and develop the unit layouts so they better suit their needs.

The 10-storey building will stretch north to Adelaide Street and toward Morrison Street to the east. It will house 93 lofts and 10 two-storey, modern townhouses that will be integrated into, rather than separated from, the main structure. One end of the townhouses will have floor-to-ceiling windows on both the first and second floors.

“Some of these townhomes have 11-foot ceilings on the ground level and 10-foot ceilings above,” Mr. Emond says. “I can assure you that’s never been done in the city.”

Located in the heart of the fashion district, the building will feature an exterior of large glass panels and sand-coloured precast concrete.

The developers’ desire to merge architectural design with public space, landscaping and art will be best demonstrated by a Zen-influenced atrium, which will contain an orchard and a sculpture garden. Inspired by St. Andrews Park across the street, the urban compound will have cast-in-place concrete walls that create a two-storey, outdoor space to guide guests from the north entrance to the main lobby. An elevated walkway will lead to a wooden bridge that will hover above a water feature.

Mr. Emond says it’s difficult for some buyers to conceptualize the project because it is unlike most conventional buildings.

But 35 suites and two townhouses have been sold in less than three months, to first-time and move-up buyers as well as empty-nesters.

The lofts at 455 Adelaide West will range from one- and two-bedroom suites to penthouses featuring two terraces with more than 1,000 square feet of space. The townhouses will have large private gardens and range from 1,186 to 1,652 square feet.

Units will feature Cecconi Simone interiors with floor-to-ceiling windows and glass sliding bedroom doors. The floors will be pre-engineered hardwood or polished concrete, complemented by exposed concrete ceilings and columns with flared capitals.

The open-concept kitchens will have islands, granite countertops and stainless-steel appliances. Bathrooms will have deep soaker tubs, Corian vanities, and oversized shower stalls. Units will be prewired for the use of a range of communication and entertainment devices.

A monthly fee of 30 cents a square foot will cover the maintenance of all common elements, as well as building insurance, heat, water and air conditioning. There will be surveillance cameras in common areas and carbon monoxide detectors in all suites.

Project: 455 Adelaide West
Location: 455 Adelaide St. West, west of Spadina Avenue
Developers: Freed Developments and Lash Development Corp.
Square footage: 565 to 3,000
Price: $174,900 to $1,500,000
Parking: $20,000
Locker: $2,500

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Two industry leaders enter exiting new partnership to present the ultimate in super luxury living in Toronto

From New Homes & Condos Magazine

Tridel and Concert Properties Ltd. have just announced a joint venture partnership for the development of Huntington – 1900 Bayview. Located in one of Toronto’s most sought-after neighbourhoods (Lawrence Park, on the west side of Bayview Avenue, south of Blythwood) this ultra-luxury condo community will be home to a limited number of residences and will offer privacy and tranquility in an intimate ravine setting.

Named one of the “Top 25 Companies to Work for in BC” by BC Business Magazine, Concert is a premier developer of residential and commercial properties. Since its formation in 1989, Concert has built more than 7,300 rental and condo homes, and has received numerous awards from the Canadian Home Builders’ Association. Concert entered the Toronto market in 2001 to focus on the development of new rental residential housing with OMERS.

In 2004, Concert engaged Tridel’s affiliate Deltera Inc. as the general contractor for Concert and OMERS’ Jazz property; a sophisticated rental residence that was recognized as the “Best New Rental Development High–Rise in Ontario” in 2006 by the Federation of Rental Housing Providers of Ontario. Deltera is also providing general contractor services for Concert on Village Gate West in Etobicoke. Now, for the first time, Concert and Tridel will combine their exceptional talents on Huntington – 1900 Bayview, Toronto’s newest luxury condo development.

“We are delighted to partner with such a first-class organization,” says Leo DelZotto, President of Tridel. “Concert is recognized as one of the leading Canadian developers, and prides itself on providing exceptional customer service. They also share our ideals and commitment to the local community. As a result of our complementary philosophies and principles, we are confident that our collaboration will result in a spectacular residential community.”

David Podmore, President and CEO of Concert Properties, notes. “We have a very high regard for Tridel, and this alliance brings together two of Canada’s top home builders in what we believe is the first in a long-term relationship. Tridel and Concert’s combined talents and expertise will result in the creation of some of Toronto’s finest communities.”

Huntington – 1900 Bayview

Occupying a fabulous ravine setting, with spectacular views of the city, Huntington – 1900 Bayview will be home to over 80 ultra luxury condos within an existing established and stately neighbourhood. Displaying dramatic architecture and outstanding suite designs, this new development offers exquisitely designed homes for the discerning buyer, ranging in size from 1,800 to 5,000 sq. ft. and priced from $1 million.

The Lawrence Park area

The Lawrence Park neighbourhood was one of Toronto’s first-planned garden suburbs. Established in the early 1900s with winding streets and a lush canopy of mature trees, this tranquil neighbourhood offers unprecedented access to downtown Toronto, Hwy. 401 and the Don Valley Parkway. To the south on Bayview Avenue are many local specialty food stores, boutiques, cafés and high-end restaurants, adding to the ambiance of the community. Directly to the north is the Sherwood Park Ravine where residents can follow the Burke Brook and enjoy old growth trees of at least 150 years old set in one of the city’s largest remaining protected natural areas. To the east is the extensive Sunnybrook Park with paths that wind for miles following the Don River and eventually meeting the waterfront.

Partners in excellence

Concert Properties Ltd. is an award-winning diversified real estate enterprise with assets in excess of $1 billion and shareholder equity of approximately $500 million. Exclusively owned by Canadian pension plans, Concert is involved in developing and acquiring multi-family condo housing, seniors living communities, rental housing, resort developments, hotels and commercial and industrial properties in British Columbia, Alberta and Ontario. In 2003 and 2004, Concert was awarded the Canadian homebuilding industry’s highest honour – the Grand SAM Award – by the Canadian Home Builders’ Association. Concert was also named Best Home Builder in British Columbia by the Canadian Home Builders’ Association of BC in 2000 and 2002.

Tridel is one of Canada’s leading developers and builders of condos with more than 70 years of homebuilding experience. To date, the Tridel Group of Companies is responsible for producing over 66,500 homes, and continues to be a leader in the industry in innovation, technology and design. Tridel is determined to develop condo communities that meet the needs of today’s homeowners while safeguarding the well-being of future generations. The company is working to meet this goal by focusing on environmentally sustainable building design and performance in construction and corporate stewardship. In recognition of Tridel’s outstanding service to its homeowners, Tridel has also been awarded the coveted Ontario High-Rise Builder of the Year Award by Tarion, formerly known as the Ontario New Home Warranty Program, and Home Builder of the Year by the Greater Toronto Home Builders’ Association, received the City of Toronto 2006 Green Award for Energy Conservation and recently J.D. Power and Associates ranked Tridel highest in satisfying buyers of newly built condos in Toronto.

New Homes & Condos Magazine is an excellent source of housing information for those looking for information on new condos in Ontario, Canada. We offer the most up-to-date information on new communities across the Greater Toronto Area.

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From New Homes & Condos Magazine

What transforms a great location into a landmark address? In the case of 500 St. Clair Avenue West, located on the northwest corner of St. Clair Avenue and Bathurst Street, it is the pioneering vision and architectural integrity of two inspired development firms, The Goldman Group and Lash Development Corporation. This remarkable alliance brings to 500 St. Clair Avenue West over 50 years and two generations of experience in building landmark development projects in Canada, the US and worldwide.

The Goldman Group, renowned for their ability to develop exclusive condos in a variety of urban locations in Toronto, the United States and Israel, has the unique ability to see what might be, instead of what is. For over forty years, Murray Goldman has demonstrated his passion for the city of Toronto as one of the very first developers to build lofts in Toronto, as well as pioneering an innovative residential enclave on trendy Queen Street West – The Soho.

The Goldman Group has always been on the leading edge of inspired condos-for-sale/propertysearch.htm” title=”Toronto condo living”>Toronto condo living, developing and building such projects as The Ports Condominiums, The Courtyards of Rosedale, and the magnificent Georgian townhomes known as Castle Hill. In addition to 500 St. Clair Avenue West, The Goldman Group is also in the process of developing The Equinox at Scarborough’s City Centre and has recently completed Forest Hill Lofts.

Lash Development Corporation is the name behind thousands of quality homes and condos across Southern Ontario and Florida. Like the Goldman Group, they pride themselves on their innovation, architectural integrity and their passion for the City of Toronto. Since the firm’s first venture in the field of apartment construction in 1953, Lash Development Corporation has established a proficiency and expertise that has formed the basis for their reputation to this day as a quality builder. Lash Development Corporation has constructed five luxury condominiums in south Florida, and in addition to 500 St. Clair Avenue West, has four brilliant new condo projects presently under development and construction in the GTA, including 777 Steeles West, 455 Adelaide West – The Fashion District Lofts, 20 Stewart and 66 Portland.

And now these two visionary leaders are bringing to life Toronto’s newest landmark luxury condos – 500 St. Clair Avenue West, one of the cities most unique and inspired condominium projects. This is the first of many future joint ventures between the Goldman Group and Lash Development Corporation.

New Homes & Condos Magazine is an excellent source of housing information for those looking for information on new condos and lofts in Ontario, Canada. We offer the most up-to-date information on new communities across the Greater Toronto Area.

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