Thinking about buying a pre-construction condo? Here are the main expenses you’ll need to consider.

As you’re considering buying a pre-construction new condo in the GTA, it’s important to know that the purchase price is only a portion the total condo ownership cost. In addition to your property purchase/mortgage expenses you will also have to cover a few additional items such as condo fees, insurance and property tax. Most of the fees are based upon the size or value of your unit, the number and types of amenities and staff required to run the facilities. For example, a building that has underground parking will typically have higher maintenance fees than one that does not. 

The following is a brief overview of the main expenses that usually accompany pre-built condo ownership in Toronto. 

Pre-Registration costs 
For all intents and purposes, once you move into a newly constructed condo building your paying rent to start. That is, until your new condo building is “registered” with a provincial land registry office. The monthly “occupancy fee” you are charged by the development once you are living in the building but before the building is registered does not go towards your mortgage. Once the building registration takes place, normal mortgage payments processes then kick in. Here is an example of how these “pre-registration” rental costs are calculated: Purchase price :$200.000 Deposit paid to the builder: 20% / $40.000 The remaining balance due to the builder : $160.000 Interest to the builder for this remaining balance. Builders typically take the 1 year Mortgage interest rate posted from Bank of Canada. So if the interest rate is 3.75% it would be $160.000 x 3.75% = $6.000/12 = $500 monthly Additionally you have to pay condo fees, let's say $200 monthly and property taxes, calculated based on the purchase price and the property tax rate, 200.000 x 0.08 = $1600 a year - $133.33 monthly. The occupancy fee will be $500 + $200 + $133.33 = $833.33 monthly until registration is complete. 

Here is some additional information on the difference between pre-registration and registration.

Condo Maintenance Fees  
Condo fees are your share of the costs that contribute to running the building as a whole for all common areas, including amenities such as party rooms, swimming pools and fitness facilities.  Typically these fees cover items such as maintenance staff, security and repairs and are usually based on the total square footage of your condo unit. These fees also include general maintenance e.g. window cleaning, snow shoveling, cleaning and landscaping. Portions of your monthly condo fees go into a “reserve fund”. The reserve fund is there to cover any major repairs and replacements of common elements that will be needed as time passes. These can include the roof, exterior of the building, sidewalks, roads, sewers, heating, electrical, plumbing, elevators, laundry and recreational facilities.

Increasing condo fees 
Condo fees can be increased due to an unexpected major repair not covered by the reserve fund, a lawsuit involving the condo corporation or to keep up with general rising costs of services. Newly built condos may increase significantly in the second or third year due to certain amenities not being included in the first year. For example, a guest suite that a corporation may buy as an asset might not take effect until the second year. 

Special Assessments  
This is an expenses that can be charged from time to time on top of regular monthly condos fees to help pay for major unexpected repairs or to cover shortfalls in the reserve fund. 

Legal Fees 
While the builder usually pays real estate service costs, you will have to pay for your own legal representation. Typically real estate lawyers charge between $700.00 and $2000.00 for their services, which are mostly focused on making sure the contract you sign is in order and meets industry and governmental regulations. 

Mortgage Fees 
Unless you buy your condo outright, at some point you are going to need a loan. Loans associated with real estate are usually called mortgages. After the bank lends you the money needed to pay for your condo in full, a mortgage is put in place to give individuals an easy and structured process to pay that money back. This is usually structured as a monthly repayment schedule. A mortgage repayment schedule is usually set up so that in the early years, a greater percentage of each payment covers interest charges and a smaller percentage covers principal repayment. Over time, this changes so that a greater percentage of each payment goes towards paying down the principal, and less towards paying interest. The more of the principal you pay down, the greater the equity you build up in your condo. Basically, equity is the amount of your condo that you own. For example, if your condo is worth $350,000 and your mortgage is for $300,000, you have $50,000 in equity. 

Resident Insurance 
In most cases, you will be responsible for and required to maintain and repair the basic elements of your unit. Interior elements of your condo unit, such as plumbing and electrical are usually covered by the condo corporation’s insurance. The rest, basically everything from the paint inward, including your furniture and other contents of the unit, would be your financial responsibility. 
Insurance policies may also have an impact on you if there is damage to your condo or surrounding condos; For example if there is a flood in your condo and it damages the condo below you, you may be responsible for costs associated with the repair of the resulting damage to other condos or to common areas. Part of the cost of tenant insurance also goes to cover you for liability should you directly cause any damage to the common areas of the building.

For more information please contact... 

Marianne Urvari, 
Sales Representative, 
Royal LePage Signature Realty, 
8 Sampson Mews, 
Suite 201, 
Toronto, ON 
Office: 416-443-0300 
Fax: 416-443-8619 
Cell: 416-817-0164

Art Shoppe Condos is a New Pre-construction Condo Development in Toronto’s Midtown Neighbourhood of Yonge & Eglinton

ART SHOPPE FACT SHEET

• Over 80,000 sq ft. of retail, including large grocer as anchor tenant approximately 55,000sq ft., signature restaurants and retail on the ground level
• Approximately 33,000 of space dedicated to residents amenities Architect: Architect Alliance – Peter Clews (award winning architect who designed 2015 Pan Am games athletes village, Thomson hotel Toronto, Four Seasons hotel Toronto Interiors by Cecconi Simone- winners of multiple local and international awards Landscaping Architect – Janet Rosenburg
• Yonge Street Location – 2 Acres, stretching a full residential block
• Short walk to subway and the new Eglinton LRT
• Large new city park to be built immediately next to the ArtShoppe Condominium

6th Floor Amenities Include:
• Zen outdoor garden designed by Janet Rosenburg
• Indoor Amenities include: double height, fitness center with two cardio rooms, two weight rooms, indoor and outdoor yoga area, juice bar and his/her change rooms, kids club 8th Floor Amenities Include:
• Double height, wine tasting room, catering kitchen, dining room with oversized fireplace, board room, lounge, library, games room with mini-bar 18th Amenities Include:
• Floor to ceiling retractable nana walls where indoor & outdoor amenities merge, lounges, largest infinity edge pool in the city stretching almost the entire length of the west loft building rooftop, Miami style cabanas and day beds, outdoor bar area with completely unobstructed city skyline views
8th Floor Amenities Include:
• Double height, wine tasting room, catering kitchen, dining room with oversized fireplace, board room, lounge, library, games room with mini-bar
18th Amenities Include:
• Floor to ceiling retractable nana walls where indoor & outdoor amenities merge, lounges, largest infinity edge pool in the city stretching almost the entire length of the west loft building rooftop, Miami style cabanas and day beds, outdoor bar area with completely unobstructed city skyline views

THE BUILDING: (SUMMARY)
• 34 Stories
• 650 suites (approx.)
• Many units with over-sized balconies and terraces
• Over half the units will have 10 ft. ceilings
• 4 Stories of state of the art amenities
• Rooftop amenity area with the largest private rooftop infinity pool overlooking the city skyline
• Ample retail & visitor parking
• TTC and future LRT at your doorstep
• 4 Guest Suites
• New Park donated to the city by the developers immediately on the East side of the site – almost ½ an acre
• 8 ft. ceilings – 6th – 8th Floor
• 10 ft. ceilings – in Loft Floors 9 to 17
• 9 ft ceilings – in the Tower Floors 18 - 34

Building Finishes
Floors - engineered hardwood in main living areas including bedrooms and dens Ceilings - smooth, white painted Cabinets - custom designed by Ceconni Simone Kitchen counter-top - Corian Kitchen backsplash – ceramic Kitchen island included in all suites 9th Floor and up Master and 2nd bath floor and tub walls and laundry floors – Porcelain Master bath counter-top – Corian Modern plumbing fixtures Shower Panel
• clear tempered glass Appliances:
• Built in and integrated European kitchen appliance package

REGISTER NOW FOR EXCLUSIVE V.I.P PREVIEW OF FLOORPLANS AND SAVE THOUSANDS

FOR IMMEDIATE RESPONSE PLEASE CALL MARIANNE URVARI AT 416-817-0164

http://artshoppecondos.weebly.com/

murvari@sympatico.ca

Bloom Park Towns - Final Few Freehold Townhomes Remain in North York from $685K

3 bedroom and 4 bedroom designs ranging from 1,810 to 2,120 sq.ft starting at $689,000.
Inside every home, attention to detail is the primary focus. 9' ceilings in main living area, open concept living and entertaining spaces flow effortlessly into one another. Modern kitchen designs come complete with European style cabinetry and premium appliances. Stylish bathrooms come with stunning contemporary features and finishes. No detail has been left unconsidered.
Situated in the centre of an established neighbourhood in North York. Occupancy in 2016

For more information please call:
MARIANNE URVARI, Sales Representative and Platinum Agent
ROYAL LEPAGE SIGNATURE REALTY, BROKERAGE
Telephone: 416-443-0300
Fax: 416-443-8619
Cell: 416-817-0164
http://www.marianneurvari.com/

Investors & Parents of Queen's University Bound Kids - ROI to 19% 3 Year Guaranteed Leaseback

EXCLUSIVE FIRST ACCESS to a Time Limited opportunity to profit from this unique, affordable and luxury pre-construction condo real estate investment NOW Launching . . ..

Kingston, Ontario has long been home to Queen's University, one of Canada's most prestigious and internationally recognized institutions of higher education, and one with a growing student population. Like most university towns, housing is in high demand in Kingston, and with more students enrolling; the need for new accommodation has created an opportunity for the real estate investor market through a new investor-geared condominium development to be built just steps from the Queen's campus.

University Suites 2 - South Tower (North Tower 90% SOLD), a condo project by Brookfield Multiplex & PRK Developments is currently in preconstruction and is the first condominium opportunity in the university district known as 'The Hub', situated at the corner of Princess and University Avenues, two of the city's most prominent streets.

University Suites will be located steps from Queen's University, several cafes, restaurants, and shopping. The development will also offer retail space at the base, to further enhance the streetscape.

TOP REASONS TO INVEST IN UNIVERSITY SUITES
• This elegant 10 story building will offer 195 Furnished Turn-key and Rent-ready suites
• 3 Years FREE Rental Guaranteed/3 Years FREE Property Management
* FREE Hotel Style Furniture Package included in the price
• Cash Flow Positive from the date of occupancy scheduled for June 2017
• Prices starting at $188,900.
• Condo choices: Studio, One Bedroom, Two Bedroom and Three Bedroom suites.
• ASSIGNMENT Clause included (transfer name before closing date)
• Development Levy Charges CAP and much more...
* Minutes to Queens University (6 to 8 minutes walk)
• Minutes to Kingston General Hospital (attractive to medical students/professionals)

EXCELLENT DEPOSIT STRUCTURE
ONLY 15% down by Occupancy
$3,000 with Offer and Balance to 5% in 30 Days
5% in 120 Days
5% in 10 Months (Sept 2015)

FACTS ABOUT QUEEN'S UNIVERSITY
* Queen's University is home to 24,000+ students from 100 different countries
* 95% of students are not from Kingston
* Highest number of award winning faculty
* Highest number of students who graduate (92.2%)
* High percentage of students come from high income families
* Highest number of A+ students than any other university - Globe and Mail
* High profile graduates with many 'Captains of Industries'

There is tremendous interest in this lucrative project, units are NOW FOR SALE via a SELECT GROUP of PLATINUM REALTORS like myself. This project is NOT OPEN TO THE PUBLIC. Considering the limited inventory and high level of interest to date, it is expected that this project will SELL OUT quickly.

For those of you with University bound children, this may be of special interest. What a fantastic opportunity this could be to invest money in student housing for a child while away at university vs. paying rent to a landlord over the next couple of years.

Contact me TODAY @ 416-817-0164 to get EXCLUSIVE Access to University Suites

RESERVE YOUR UNIT NOW for Lowest Pricing & Best Choice of Suites

For further information, please call...

Marianne Urvari, Sales Representative
Royal LePage Signature Realty Brokerage
8 Sampson Mews, Suite 201
@ Shops at Don Mills
Toronto, ON M3C 0H5
Office: 416-443-0300
Fax: 416-443-8619
Cell: 416-817-0164

www.marianneurvari.com

North York Preconstruction Luxury FREEHOLD Townhomes

3 bedroom and 4 bedroom designs ranging from 1,810 to 2,120 sq.ft starting at $689,900.
Inside every home, attention to detail is the primary focus. 9' ceilings in main living area, open concept living and entertaining spaces flow effortlessly into one another. Modern kitchen designs come complete with European style cabinetry and premium appliances. Stylish bathrooms come with stunning contemporary features and finishes. No detail has been left unconsidered.
Situated in the centre of an established neighbourhood in North York. Occupancy in 2016.

For more information please call:
MARIANNE URVARI, Sales Representative and Platinum Agent
ROYAL LEPAGE SIGNATURE REALTY, BROKERAGE
Telephone: 416-443-0300
Fax: 416-443-8619
Cell: 416-817-0164
http://www.marianneurvari.com/

Only 5% Down @ LivLofts - Shops at Don Mills! Move in NOW/SPRING

Toronto's trendiest urban village at Shops at Don Mills, steps to designer shopping, fine dining, events, festivals and more. Sleek architecture, stunning designs and exciting lifestyle amenities enrich your life at LIV Lofts.

LIV LOFT CONDOS - MID $200'S TO $1 MILLION
EXCLUSIVE SAVINGS
AT SHOPS AT DON MILLS
5% DOWN UNTIL OCCUPANCY
FREE MAINTENANCE FEES - 2 YEARS
UNITS READY TO MOVE IN THIS DECEMBER OR SPRING 2015!!!

Liv Where You Shop, Dine And Play! This Is The 2nd Building Of This Contemporary Urban Village @ Shops At Don Mills, Steps To The Coolest Destinations In Toronto For Shopping, Dining, Patio's & Cafe's, Boutiques & The New Cineplex Vip Movie Theatre. Rooftop Terrace With Fireplace & Bbq, Party Room, State Of The Art Fitness Centre, Concierge, Wifi Lobby, TTC @ Door, 24 Hour Metro, Tim Hortons, Starbucks And More. **** EXTRAS **** Lofts Have 10' Ceilings With Exposed Duct Work In Living Area,Wide Plank Laminate Flooring, European Stainless Steel Built-In Appliances, & Stainless Steel Hood Fan, Quartz Counter Tops In Kitchen And Baths, Designer Lighting Throughout.

For more information and an Open House invitation please call:
MARIANNE URVARI, Sales Representative and Platinum Agent
ROYAL LEPAGE SIGNATURE REALTY, BROKERAGE
Telephone: 416-443-0300
Fax: 416-443-8619
Cell: 416-817-0164
http://www.marianneurvari.com/

Toronto’s Real Estate Market in 2012 – A Mid Year Review

The Toronto Real Estate Board published their monthly sales statistics last week and the slow down we’ve been seeing in the real estate market continued in June.

Sales were down 5.4% across the GTA in June but the City of Toronto accounted for virtually all of the decline showing a 13% drop in sales. Sales in the 905 were comparable to last year.

In TREB’s press release they unfortunately attempted to explain this decline in sales by arguing that home buyers may be opting to buy homes in the 905 vs the 416 to avoid paying the City of Toronto’s land transfer tax. TREB has recently stepped up their PR efforts to get the City of Toronto to repeal the land transfer tax which explains how it suddenly crept into their press release. As I told the CBC last week, it’s silly to suggest that home buyers suddenly woke up in June 2012 (four years after the tax was introduced) and decided they want to buy a house in the suburbs rather than in Toronto because of the land transfer tax.

Instead of just focusing on the sales figures for June I thought it would be interesting to take a quick look at how the real estate market in Toronto has changed during the first six months of 2012.

As I mentioned in a previous post, sales in Toronto got off to a very quick start in 2012 with a significant number of homes getting multiple offers. The following chart shows the number of sales per month over the past four years.

You’ll note that the sales cycles over the past 4 years have varied slightly. In 2009 and 2011 sales kept their upward trend until June before declining in July and in 2010 sales started to fall as early as May. In 2012 sales remained strong until May before dropping 8% in June.

The press made a big deal out of the decline in sales in June but the fact is that these kind of seasonal declines are normal. The decline in sales between this year and last year has a lot to do with the fact that sales were much stronger between January and May this year (up 9% over last year) so by the time we hit June there were fewer buyers in the market

We have also seen the inventory of homes available for sale gradually increase this year. In June there were 13% more houses available for sale then there were the same time last year.

The decrease in sales and increase in inventory means that we are moving slowly towards a more balanced market. The sales-to-inventory ratio for June dropped to 46% from 53% in May. This means that in June for every 10 houses that were available for sale 4.6 actually sold.

It’s interesting to note that even though the market feels quite slow right now we are still in seller’s market territory. In order for us to move to a more balanced market we’ll need to continue to see sales drop and inventory rise.

During the first six months of 2012 we have seen a very competitive market followed by a sudden slowdown. These mini cycles are normal. We can actually see them historically by looking at the sales-to-inventory ratio (abpve chart). The higher the sales-to-inventory ratio the more competitive the market is, the lower the ratio the cooler it is.

Understanding these mini cycles is a key part of the home buying and selling process. As a seller you can’t just look at the price your neighbor got three months ago and expect to get the same price today. There are many factors that impact a home’s sale price and it’s possible that in a hot competitive market your neighbor got more than their house was actually worth.

As buyers, you need the right strategy that reflects what is happening in the market today. Back in April our company noticed that the market was showing signs of slowing down slightly and we expected this trend to continue so we advised many of our active buyers who had houses to sell to list their homes for sale immediately even though they hadn’t bought a house yet. Most agents at the time were advocating a “buy first” strategy because of the high number of multiple offers which made it difficult to buy a house. But the high volume of multiples is one of the reasons we advocated selling first. We believed that with every week that passed the market was going to be less competitive which meant that the longer our clients waited to sell the less they would get for their home.

We recommended selling first and negotiating a long closing date giving them extra time to find a house to buy. There were of course risks with this strategy, namely the risk of not being able to buy a home in the 1-2 month window they had. But for the clients who were comfortable with the risks it certainly paid off. They sold their houses for more than market value and ended up buying in a less competitive market.

The real estate market can change from one month to the next. You need a home buying and selling strategy that reflects what is happening in the market today.

For more information please call Marianne Urvari 416-817-0164