Toronto Condo Market

[babysham]

Is it just me or are condos in Toronto way overpriced? I've seen 600 square foot 1 bedroom condos going for $250,000+. Does anyone here think a condo on the lake or on the Yonge subway line is worth the that much of an investment? I'm thinking of buying a condo, preferrably in the Yonge-Sheppard area, but I'm shocked by the prices. They seem to have gone up a lot in the past year or two.

[advantage21]

That's a really brilliant observation. Have you been in a coma for the last few years?

[babysham]

Thanks man. I'm looking for some advice/help here. Looking to see if spending $250k on a 1 bedroom condo or 1 plus den is worth it or not.

Would appreciate some real opinions.

[mirek]

I just paid over that for a 50 year old condo in Vancouver, ~600sq. I wish I could have got it for 250.

[felix]

I just paid over that for a 50 year old condo in Vancouver, ~600sq. I wish I could have got it for 250.
50 years ... wow, that's old! Can't find such old condos here (at least not in my area).

[monomono]

Yeah they are expensive, especially compared to a few years ago. But when you look at the prices of houses they are still cheap.

E.g. Yonge & Sheppard area, townhomes start at around 500k, but a 2 bed condos start around 300k. For first time buyers who need 2 bedrooms, those are the options. That's why there's still plenty of demand for condos, and builders continue to build them.

And if you take a couple of subway stops down to Yonge & Eglinton, 600sf of condo will cost you at least 300k.

[pacman]

Those prices seem cheap compared to condos in Calgary.

[rfdrfd]

You know the golden real est. rule right?

Location, Location, Location


If you want to live in a good area = $$$$


I know a friend selling his condo out in Etobicoke >1000 sq. ft, asking $150,000. Pictures look really nice too, but it ain't Yonge & Finch or Sheppard.

[Wat_Da_Dealio]

Yeah they are expensive, especially compared to a few years ago. But when you look at the prices of houses they are still cheap.

E.g. Yonge & Sheppard area, townhomes start at around 500k, but a 2 bed condos start around 300k. For first time buyers who need 2 bedrooms, those are the options. That's why there's still plenty of demand for condos, and builders continue to build them.

And if you take a couple of subway stops down to Yonge & Eglinton, 600sf of condo will cost you at least 300k.

Not necessarily, bought a 610 sf one on Eglinton a few blocks east of Yonge for $189,000.
Granted I bought it two years ago and still haven't moved in :mad: (the downside of buying cheap pre-construction) September it is finally supposed to be ready, but it still is worth well under $300,000.

It's more like $210-250000 for 600 sf in this area. More if you want a parking space which I don't have or need, considering this area is a transit hub.

[PrinceMS]

It all comes down to your intentions. If you are buying it to live in it (somewhat long term) then you don't have anything to worry about - Generally people out grow recession (if there is one).

If you are buying it as investment / rent out - then you have to look at many more issues.

[monomono]

It's more like $210-250000 for 600 sf in this area. More if you want a parking space which I don't have or need, considering this area is a transit hub.

I stand corrected. I was kind of extrapolating from parking space prices, which I recall being 28k at the Minto development at Yonge & Eg, compared to ~20k at Yonge & Shep.

[majesus]

Is it just me or are condos in Toronto way overpriced? I've seen 600 square foot 1 bedroom condos going for $250,000+. Does anyone here think a condo on the lake or on the Yonge subway line is worth the that much of an investment? I'm thinking of buying a condo, preferrably in the Yonge-Sheppard area, but I'm shocked by the prices. They seem to have gone up a lot in the past year or two.

That's a really brilliant observation. Have you been in a coma for the last few years?

Thanks man. I'm looking for some advice/help here. Looking to see if spending $250k on a 1 bedroom condo or 1 plus den is worth it or not.

Would appreciate some real opinions.

LOL, what did you expect?
Anyways, it depends on yourself. If you want to own your place, then those prices you mentioned are the reality of today's market. Unfortunaetly, I am in the exact boat as you... My GF and I would like to buy something instead of renting. It really comes down to a few things:
- rent vs investment
- risk
- your lifestyle
- your affordability

[bk33]

I'd keep saving and wait for this (http://www.theltower.com/) at Yonge & Front
http://bp2.blogger.com/_QI_G3nlmC80/Rm2entH9YSI/AAAAAAAAAAM/B7BgPOGak1k/s1600/The%2BLTower.jpg

or if you don't mind mississauga...
http://upload.wikimedia.org/wikipedia/en/thumb/6/69/Theabsolute.jpg/243px-Theabsolute.jpg
haha i'm probably not helping...are you looking for a roommate tho? I wanna move out if i get enough osap this time, sept-april.

[Sylvestre]

Is it just me or are condos in Toronto way overpriced? I've seen 600 square foot 1 bedroom condos going for $250,000+. Does anyone here think a condo on the lake or on the Yonge subway line is worth the that much of an investment? I'm thinking of buying a condo, preferrably in the Yonge-Sheppard area, but I'm shocked by the prices. They seem to have gone up a lot in the past year or two.

As you said, there's a subway stop at Yonge & Sheppard. Regardless of what happens to the real estate market, locations that are on a subway line will always be expensive because of the demand. There's immigrants who don't want cars, there's students at the downtown colleges and universities, etc etc.
Because of that, you can expect a significant amount of people buy properties both to live in and as investments to rent out. High demand = high prices.
If you don't need the subway or that location, why not consider Avenue or Leslie? Some really nice places there and not as expensive (but not cheap either)

[HammerTime]

Bought 630sf 1br condo for $181,900 at Bayview & Sheppard 3 years ago, which is not too far away from Yonge & Sheppard.

[Coltsfan]

I find the prices quite high, especially considering the square footage for the Yonge/Sheppard area. I used to live there and I've had 2 friends buying there now and I can't believe the price for what you get even compared to 6 years ago.

If you don't mind living in a resale condo that's 5-9 years old at Yonge/Sheppard area, you can find comparable prices to new models now, but they will be 700+ square feet. I lived in Sommerset Way, 3 blocks south of Finch, Tridel built. Lovely condo, probably more spacious than say the Meridian or Ultima. My friend is looking to buy in the Ultima off of Beecroft and that's about $210-$220k for a 650 square foot 1 bdrm. I forget the name of the building, but the new glass one on top of Running Room and Tim Hortons goes for about $215k for a 600 square foot 1 bdrm.

Buy something even older and you'll get even more square footage for your price. A friend just sold his 25yr old unit for $215k, 2 bdrm at about 1400 square foot. It's still a great building and he reno'd the whole place with new kitchen and bath and new closet doors.

If you're not going to use amenities like the pool, gym, bowling alley, tennis court, spa etc. try to find a building that doesn't have a lot of these and you could save on monthly maintenance fees.

[asmielia]

And if you take a couple of subway stops down to Yonge & Eglinton, 600sf of condo will cost you at least 300k.

I bought a 1 bedroom condo back in November. 3 blocks east of Yonge on Eglinton in an upscale building. 710 sq. ft. for $285k. Yes, prices are high here, but like others have said, nowhere near the prices for houses. And the location couldn't be better. There are only so many places for sale on subway lines, which is critical if you need to get somewhere fast without a car.

I read a report that some condo went on sale in my neighborhood not long ago and the entire building sold out in 24 hrs. So it's safe to say the market is still on fire. Who knows how long it will last. If you're talking about paying under $200k, I wouldn't say you're doing too badly.

[sleepyguy]

We purchased a condo near Rogers center (a few years old) around 8mths ago. Around 600 sq/ft + parking. Cost was around $220k (15K is parking) if i recall. Her bro will be renting it out for the next 2 years or so. A few other have gone up for sale in the same complex for around $260K now.

Pretty ridiculous. -sg

[gei]

Is it just me or are condos in Toronto way overpriced? I've seen 600 square foot 1 bedroom condos going for $250,000+. Does anyone here think a condo on the lake or on the Yonge subway line is worth the that much of an investment? I'm thinking of buying a condo, preferrably in the Yonge-Sheppard area, but I'm shocked by the prices. They seem to have gone up a lot in the past year or two.

It's just you. If those prices shocked you, I would stay far away from places like Vancouver or even Calgary.

[Rudee]

Those prices seem cheap compared to condos in Calgary.


Huh? There's still plenty of condo's in Calgary that are in the 250's price range. Check MLS and see for yourself. A friend of mine bought a 900sq ft condo in the SW in Evergreen a few weeks ago for around $250k. Lots of stuff on the market now.

[urban1]

Evergreen is one of the communities furthest south in Calgary. $250k for a condo on the outskirts of calgary. If you work deep in the south then thats great. If you work downtown then forget about. And forget about being young and single and wanting to live way out there. For a downtown condo your looking at $300+ to get into the market for a new (or recently built) unit and possibly $400+ depending on location and the building.

Huh? There's still plenty of condo's in Calgary that are in the 250's price range. Check MLS and see for yourself. A friend of mine bought a 900sq ft condo in the SW in Evergreen a few weeks ago for around $250k. Lots of stuff on the market now.

[VelociRacer]

I would love to know the property tax payments on these big city condos.

In the Windsor area, you can get a 1200+ ft^2 Semi-Detached (ie. no fees) for $150k and your property tax will not be far from $2,500/yr. Finish the basement and you'll have a 2000+ ft^2 for under $180k. Prices I have not seen in the big cities for almost 20 years.

No, it is not because the auto industry has tanked recently, prices have been like this for the last 5 years. Can't say the same about Toronto and the like. I continue to be shocked by the real estate market hyper-inflation in the big cities. I think people make tax free money by buying and selling real quick, thus driving prices up with each new owner.

[ssainani]

I would love to know the property tax payments on these big city condos.
.

pretty much the same as having a big city house

1% or so of your accessed value

[eelfliw]

I've seen 600 square foot 1 bedroom condos going for $250,000+. Does anyone here think a condo on the lake or on the Yonge subway line is worth the that much of an investment?
You can't call your purchase an "investment" if you don't have a solid plan to sell within a given time frame.

You see, an investment involves both a buy and a sell of a real property. If you never sell the place, you won't realize gains. And without gains, it is not an investment.

So, decide on when you plan to sell. And if the selling price is higher than the buying price, regardless how much you've bought it for, plus you have all interim expenses covered by either living there and/or renting it out, then it's an investment.

But if you see no upward price potential within your timeframe, then the condo will not qualify as an investment.

No buying price is too high as long as you make money selling it. There's only marginal cost.