Tag Archives: toronto condo buyers
Data on condo speculators prove elusive
Tara Perkins – The Globe and Mail
An effort to get more information about the influence of some speculators in Toronto’s condo market has collapsed after developers refused to take part, leaving policy makers in the dark.
Comment: Awesome, thank you builders! Time for people to stop guessing about speculators in the market. There are not that many, and they don’t matter that much. Stop trying to make something – and something negative at that – out of nothing.
Urbanation Inc., a data-research firm, has pulled the plug on a survey that it had tried to conduct, with the support of Canada Mortgage and Housing Corp., to quantify how many “assignments” are taking place in the market.
An assignment is when a buyer who has bought a condo in a building that’s not yet finished, or registered, assigns their right to buy the unit to someone else.
Comment: And assignments do not mean speculators or flippers. Remember, some of these people bought their condos on opening week, 3 years ago, maybe even more. Their life has changed. Maybe they got married, had a child, changed jobs, moved, etc. Just because someone sells their condo does not mean they are a flipper looking for profit.
Urbanation officially called off the study Tuesday, after the vast majority of developers who were asked for information did not give it. The study could have shed light on an aspect of the condo market that economists and policy makers have been worried about, as they have sought to get a handle on just how overheated the market might be and what risks it might pose to home buyers and the greater economy.
“There aren’t any good numbers on the amount of properties being used for investment purposes,” said Toronto-Dominion Bank chief economist Craig Alexander. “It’s very hard to assess risk in the market when you don’t have insight on that.”
Comment: Yet every wonk out there is happy to give their opinion on the risk level. They all claim we are at Def-Con 4 these days. And they are saying all of this with NO data.
Urbanation had sent a letter to developers in August, notifying them that it would be conducting this “very important data collection exercise” with the support of CMHC.
Ben Myers, executive vice-president at Urbanation, said he sent the survey to more than 100 developers that had launched condo projects in the past five years, asking them for either the percentage of units or an exact number of units that had been assigned before the condo buildings were registered. “We wanted to know what’s happening with this shadow market; there’s no real way to track it,” he said.
He said that one person he spoke to, outside of the developer community, speculated that “because some of the people assigning units are not paying capital gains taxes on that, developers may not want the government looking into that any further.”
Comment: Right… this is new. Now the tin-foil-hat folks are claiming that Toronto condo developers are in cahoots with investors to help them cheat the government out of tax revenues? Nice.
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Contact the Jeffrey Team for more information – 416−388−1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Onwards and upwards on Toronto’s waterfront
Lisa Van de Ven – National Post
Toronto has a love affair with the condo, with 28,466 new-build units purchased in 2011. Thousands more are planned. Suite size, price, amenities and architecture are important, but more and more, a building’s neighbourhood is being considered the ultimate draw.
“I haven’t gotten used to it at all.”
Speaking from his 31st storey condo suite at Queens Quay and Yonge, Pasha Nasirzadeh is referring to the commanding view. It’s the reason you’ll often find him out on his balcony, sometimes with his fiancée Andrea Kendaris, who’s moving in next month.
With a southwest vista and no obstructions from his sky-high vantage point, Dr. Nasirzadeh loves looking out over Lake Ontario. “When the weather’s good in the summer, Andrea and I pretty much have our dinners on the balcony,” he says.
Initially, it wasn’t the view that enticed Dr. Nasirzadeh to Toronto’s southern edge. When he started looking to buy a condo in 2009, all that the avid cook knew was he wanted something within walking distance of St. Lawrence Market. When he couldn’t find anything, he ended up on the waterfront. It turned out to be just right: A walk to the market and easy access to both public transit and the Gardiner Expressway (a convenience for the dentist, who commutes daily to his practice in Aurora).
He’d soon find out it was also an action-packed, diverse neighbourhood. Today, you’ll see him and Ms. Kendaris taking the ferry to the Toronto Islands for an afternoon, or visiting local hotspots such as the Harbour Sports Grille to watch a game, or the lobby bar at The Westin Harbour Castle for drinks.
“In the summer, there’s a lot of people on bikes and Rollerblades or jogging,” he says, and the couple often joins them on their bikes, enjoying summer on the shore. “It’s very lively.”
On a recent evening, locals walk their dogs, joggers go by and a young couple shares a kiss on the grass at Harbour Square Park. There’s the odd tourist (evident from their cameras) but it’s obvious this neighbourhood isn’t just for visitors. For Dr. Nasirzadeh and fellow residents, the waterfront is more than just a place to live; it’s a lifestyle choice. And thanks to the revitalization underway, residents are seeing their community changing, with a lot more neighbours getting ready to move in to enjoy the view.
Walking against the wind on an April evening, James Russell remembers dropping by the waterfront to write at the Second Cup at Queens Quay and York, even before he moved into the neighbourhood. Perhaps it was destiny that he’d fall in love with a woman who lived close by. He moved in with her in 2005 and has been there ever since; he’s now a member of the York Quay Neighbourhood Association. As a resident, he says, he sees a side of the waterfront not a lot of tourists (or even other Torontonians) are privy to. “In the winter it’s pretty quiet down here,” says the author of the young adult book Mermaids and Zombies. “And year round there’s a community of people — we like to think of ourselves as vertical communities. We really are a little city here.”
While there are amenities Mr. Russell wishes would make their way into the neighbourhood, such as a good breakfast spot, more playgrounds, libraries and daycare facilities, a lot of what the residents need is there, including a new Sobeys in the Queens Quay Terminal, the long-established Loblaws at Queens Quay and Jarvis, and even more facilities for the neighbourhoods east and west of that.
“People who live here have everything they need within a five-minute walk,” says Carol Jolly, executive director of the Waterfront Business Improvement Area. “They’ve got all their services, like doctors and dentists, groceries, liquor store.”
Right now, what they also have is construction in the form of the waterfront revitalization. A joint project by all three levels of government, the venture will lure more tourists to the lakeshore, and will benefit area residents.
While the waterfront of the past was designed for industry, today the master plan involves a mix of uses. An estimate of 40,000 residential units (the future homes of approximately 115,000 people) is planned along the waterfront from Dufferin to the Eastern Beaches over the next 30 to 35 years, give or take a few, says John Campbell, president and CEO of Waterfront Toronto. There will also be new employment, promising to bring more activity to the neighbourhood even in the tourist-light winter months: Oxford Properties has an office tower underway and George Brown College is building a new campus.
New recreational areas, meanwhile, will give the influx of people places to gather: Sugar Beach has been a favourite since it opened in 2010 and there are new parks planned throughout the area as well.
Queens Quay will also undergo a complete redesign, with construction slated to start this summer, and expected to last 18 to 20 months. Car traffic will be reduced from four lanes to two, with a dedicated Light Rail Transit line installed, as well as a pedestrian promenade. The Martin Goodman Trail will be extended alongside, and other beautification efforts, including new benches and trees, will be added. It will be a complete transformation for a street once listed as part of the “Hall of Shame” by the Project for Public Spaces, a New York-based non-profit focused on creating stronger public spaces.
“We will turn it into one of the 10 most beautiful streets in the world,” Mr. Campbell says. “I’m forecasting it will become Toronto’s signature street.”
The changes will be more than welcome to Queens Quay resident Kelly Gorman, who’s on the Waterfront Toronto stakeholder advisory committee. “That’s something I’ve been looking forward to for a number of years now,” she says. “It will help a street that needs beautification.”
Ms. Gorman, a retired teacher, moved to Queens Quay from Scarborough in 2001. Now she volunteers at the Harbourfront Centre and walks everywhere: to Ontario Place or downtown to Roy Thomson Hall and some of her other favourite venues. “To me one of the great pleasures of living down here is not only the beauty of it but also that you don’t have to go very far to do lots of things,” she says.
Ask Ms. Gorman what else she likes about the neighbourhood, and, like Mr. Russell, she’ll name the strong sense of community. It’s a quality visitors to the area wouldn’t notice. “I was really sick for about a week last month. Do you know how many people knocked on my door to bring me supper?” she says. “To me, if you get involved and make friends, it’s amazing.”
Then, of course, there’s the view. Like Dr. Nasirzadeh, Ms. Gorman can’t get enough of it; for her, it’s a natural pick-me-up. “It’s so relaxing. It doesn’t matter how stressful your day is,” she says.
And what says home more than that?
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Contact the Jeffrey Team for more information – 416−388−1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Feeling at Home in the Heart of Toronto
Elaine Smith – The New York Times
Travelers flying into Billy Bishop Airport after dark see the Toronto skyline shimmering like a diamond necklace.
Sparkling along the Lake Ontario shoreline are dozens of high-rise condominiums, lights gleaming through their glass facades. Many of these condos are in the downtown core and were built over the past decade, as city living came back into fashion. Today, real estate agents say, such units are being snapped up as fast as they go on the market.
In the fourth quarter of 2011 alone, almost 900 condominium units were sold downtown, 25% of the approximately 3,600 condo sales citywide.
A city survey released in March, “Living in Downtown and the Centres,” attributes the popularity of housing in Toronto’s core to its proximity to work and transit options, cultural and entertainment sites, and the venues for the city’s major league basketball, baseball, hockey and soccer franchises.
The city, home to 2.5 million people, is planning for another half-million residents by 2031, and its official development plan identifies the downtown as one area where residential growth should take place. In the past five years alone, the downtown population has grown to approximately 200,000, an 18% increase; while the number of condos downtown has risen to about 112,000 – an increase of 23%.
“Many people like the convenience of not driving to work. They enjoy being in the center of everything and the downtown has lots of restaurants and shops,” said Oksana Jancevic, a sales representative at Royal LePage Real Estate Services who specializes in downtown properties. She settled here herself after relocating from Lithuania 10 years ago.
The description makes sense considering that more than half of all downtown residents are single and between the ages 20 and 44, according to the new survey. More than 50% have at least a university degree and one third have annual household incomes of more than $100,000. When it comes to couples, 30% are childless.
Bryan Wang, 30, fits the profile. The Singapore native came to Toronto to attend college and now works as the marketing director of a high-tech company.
Three years ago, “I was renting a 390-square-foot bachelor unit and paying $900 each month,” he recalled. “They were planning to raise my rent to $1,000. Around that time, banks were offering really low mortgage rates and I thought that $1,000 was ridiculous for what I was getting. I might as well buy.”
He spent $250,000 to $300,000 for a 630-square-foot, or 58-square-meter, one-bedroom unit in a 30-story high-rise on the Esplanade, near the lakeshore and close to the bustling St. Lawrence Market, a popular weekend farmer’s market. He walks to work, shopping and entertainment and the convenient location allows him to forgo a $126-a-month transit pass.
“I’ve always been a downtown person more than a suburban person,” Mr. Wang said. “I can walk out of my building and there’s life outside. I like having everything within reach, too.”
Thanks to its conservative banking system, Canada escaped the sub-prime mortgage crisis that ravaged the U.S. housing market. In recent years steady economic gains — and low interest rates — have fed market growth, with condominium construction leading the way in Toronto.
The Toronto Real Estate Board estimates that 17,000 condominium units were completed across the city in January 2011, 10,000 more than in January 2001. And they sold for an average of $336,748, an increase of 7% from a year earlier.
Ms. Jancevic said the downtown core market did slow at the beginning of the global economic crisis but “price-wise, the only place downtown went was up.”
Gilles Duranton, a real estate economist who teaches at the University of Toronto, noted that the city’s official development plan encourages density. So does the tax structure: commercial and industrial buildings are taxed at four times the rate of condominiums and single-family homes.
“The city is prosperous, new people are coming in and the supply of housing is limited,” he said, noting that one reason for the condominium boom “is that developers cannot build much else, unless they tear down bungalows.”
Most of the downtown high-rise units are sold long before construction begins; developers won’t break ground until a substantial proportion of the units are sold, Ms. Jancevic said. Some of those buyers are residents from elsewhere in Ontario, as well as foreign investors, including some from Asia.
Mr. Duranton noted that recently some of the downtown condominium development was moving into what once was considered “no-man’s land” — near the elevated Gardiner Expressway that runs parallel to the lakeshore. Once the projects are completed, views of Lake Ontario and proximity to transit and amenities will be joined by the buzz of traffic.
—————————————————————————————————–
Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
—————————————————————————————————–
Incoming search terms












