[general surfer]

ok guys, this one is from my friend, what is the diffenence between co-op amnd condos, since he seen some nice co-op along elington and young , also forest hill area, is very afordable, some of them with parking as well, just wondering what is the pros and cons about co-op, thanks from him, he is trying to get into the the realisitc world too, so please advise.

thanks

 

[Yossi Kaplan MBA]

ok guys, this one is from my friend, what is the diffenence between co-op amnd condos, since he seen some nice co-op along elington and young , also forest hill area, is very afordable, some of them with parking as well, just wondering what is the pros and cons about co-op, thanks from him, he is trying to get into the the realisitc world too, so please advise.

thanks

1 - The main differences are legal: in a co-op, you do not own your actual unit, but own a percentage in the entire project, and get an exclusive right to reside in a specific unit.

in a condo, you own your unit and mutually with all other owners own the common spaces/elements.

2 - in the past it was difficult to get financing for co-ops, mostly thgouth Duca, and now TD finances co-ops as well.

3 - most co-ops in the bathurst/eglinton area are older apartment buildings converted to co-ops, in hope to be converted to condos later in the process so all owners will see tremendous gains in value (co-ops tend to get much lesser value)

4 - so far all lawyers i have worked with advised the buyers not to get in co-ops for various reasons. if you are looking into a co-op start with a lawyer first as there are many issues of ownership, warranty and others that needs to be explained to you first.

thx.

 

[general surfer]

1 - The main differences are legal: in a co-op, you do not own your actual unit, but own a percentage in the entire project, and get an exclusive right to reside in a specific unit.

in a condo, you own your unit and mutually with all other owners own the common spaces/elements.

2 - in the past it was difficult to get financing for co-ops, mostly thgouth Duca, and now TD finances co-ops as well.

3 - most co-ops in the bathurst/eglinton area are older apartment buildings converted to co-ops, in hope to be converted to condos later in the process so all owners will see tremendous gains in value (co-ops tend to get much lesser value)

4 - so far all lawyers i have worked with advised the buyers not to get in co-ops for various reasons. if you are looking into a co-op start with a lawyer first as there are many issues of ownership, warranty and others that needs to be explained to you first.

thx.

thank you, yossi, very detail explaining, i'll tell me friend about this, appreciated

 

[Torontotony]

Yossi's comments are spot on, but I will add that while there are a select few lenders who will actually finance the purchase of a co-op, actually obtaining financing is decidedly more difficult than usual. Using first hand experience from the 30 or so that I have financed over the years, our clients have had to jump through hoops to complete their purchases, including having to come up with bigger downpayments and having the co-op's financial statements more closely scrutenized, to name a couple of issues. There have been more.

The best thing to do is consult a lawyer and if everything clears with him/her, make sure you are dealing with a super solid mortgage broker or bank manager. Things will go much smoother.

Tony

 

[general surfer]

Yossi's comments are spot on, but I will add that while there are a select few lenders who will actually finance the purchase of a co-op, actually obtaining financing is decidedly more difficult than usual. Using first hand experience from the 30 or so that I have financed over the years, our clients have had to jump through hoops to complete their purchases, including having to come up with bigger downpayments and having the co-op's financial statements more closely scrutenized, to name a couple of issues. There have been more.

The best thing to do is consult a lawyer and if everything clears with him/her, make sure you are dealing with a super solid mortgage broker or bank manager. Things will go much smoother.

Tony

since my friend doesnt have enuff money to buy a one bedroom, so he was thinking buying something small and cozy, instead of paying rent every mth for nothing, you guys know what is the smallest size of a condo or an apartment for sale in toronto and how mcuh would that be? thanks

 

[dpylyp]

Co op

May further have interview process by management board if you are acceptable There is no appeal process.

There are no landlord Tenant remedies for orders of possesson or eviction in a co op.

You cannot force the tenant to depart IF you need your unit back after rental.

ONT Landlord Tenant Act is currently MUTE on co op properties.

 

[Torontotony]

since my friend doesnt have enuff money to buy a one bedroom, so he was thinking buying something small and cozy, instead of paying rent every mth for nothing, you guys know what is the smallest size of a condo or an apartment for sale in toronto and how mcuh would that be? thanks

100% financing is still available for those individuals without a traditional downpayment . You don't mention what part of town your friend wants to buy in, but it is still possible to get a decent sized one bedroom for under $200k in an "M" postal code.

 

[general surfer]

100% financing is still available for those individuals without a traditional downpayment . You don't mention what part of town your friend wants to buy in, but it is still possible to get a decent sized one bedroom for under $200k in an "M" postal code.

since he doesnt have a car, so ideally along the subway line, he works downtown tho, so it's a bit difficult and challanging. right now he is renting a studio apartment in ossington, very close to the subway, and charge him 1200 a mth, so he wants to pay this money as his mortgage instead of rent.

 

[Torontotony]

Perhaps some of the realtors posting on this board can assist.

 

[safeashouses]

Those properties you speak of are called Co-Ownerships,
not Co-Operatives.* There is a difference.*
I suggest you google it and talk to a lawyer if you are serious.
* They generally are available at a generous discount to
comparable condos due to the financing challenges described
above.* However, as pointed out, a Co-Ownership building that
is primarily occupied by owners has a great shot of being
converted to condo and therefore holds a nice possibility for
some upside appreciation after a reasonable amount of effort
by a proactive Co-Ownership Board.If you have a 25%-30%
down payment (which you should really have anyway if you are
a pragmatic buyer) then I highly recommend you or your friend
consider a Co-Ownership unit.* The locations where they are
typically found are very desirable and mature areas rich with
amenities, good transportation access and very expensive single
family housing and likely to remain that way into the future
as opposed to many of the fringe and master planned condo
clusters in the city that will likely erode over time.

 

[dt_toronto_geek]

since he doesnt have a car, so ideally along the subway line, he works downtown tho, so it's a bit difficult and challanging. right now he is renting a studio apartment in ossington, very close to the subway, and charge him 1200 a mth, so he wants to pay this money as his mortgage instead of rent.

Two come to mind downtown, one is on Homewood Ave north of Carlton (Homewood is between Jarvis & Sherbourne) which is a highrise built in the late 60's/early 70's and another is on Gloucester Street between Yonge & Church - also a late 60's/70's building. The building on Gloucester Street (30 Gloucester) is currently undergoing balcony restoration so have a look on MLS to see if anything is for sale, I'm willing to bet that there is. A friend of mine invested in several co-op units back in the 90's and rents them out to U of T students over on Spadina, south of Bloor. I'm not sure of the exact location though.

 

[general surfer]

Two come to mind downtown, one is on Homewood Ave north of Carlton (Homewood is between Jarvis & Sherbourne) which is a highrise built in the late 60's/early 70's and another is on Gloucester Street between Yonge & Church - also a late 60's/70's building. The building on Gloucester Street (30 Gloucester) is currently undergoing balcony restoration so have a look on MLS to see if anything is for sale, I'm willing to bet that there is. A friend of mine invested in several co-op units back in the 90's and rents them out to U of T students over on Spadina, south of Bloor. I'm not sure of the exact location though.

location is good for him,. but what about the price range, he prefer the 150k, would it be possible? advise please!

 

[dt_toronto_geek]

location is good for him,. but what about the price range, he prefer the 150k, would it be possible? advise please!

Nothing for sale on Homewood right now. Overall, this is not a great time of year to be buying and selling in Toronto. 2 units on Gloucester but both are two bedrooms. Here's a taste of what a downtown co-op goes for on Gloucester Street (a great street and close to everything)

http://www.mls.ca/propertyDetails.aspx?propertyId=8774767

http://www.mls.ca/propertyDetails.aspx?propertyId=8607150

 

[general surfer]

Nothing for sale on Homewood right now. Overall, this is not a great time of year to be buying and selling in Toronto. 2 units on Gloucester but both are two bedrooms. Here's a taste of what a downtown co-op goes for on Gloucester Street (a great street and close to everything)

http://www.mls.ca/propertyDetails.aspx?propertyId=8774767

http://www.mls.ca/propertyDetails.aspx?propertyId=8607150

these two are too much for him i guess, location is excellent, but the price is way off he can afford, i'll keep looking for him on the mls, thanks very much, really appreciated! you are my source!

 

[dt_toronto_geek]

I just noticed this listing today at 40 Homewood, a co-op on Homewood Ave. which is just north of Carlton between Sherbourne & Jarvis. The price is a little high for a 1 bedroom in a co-op but it's renovated and on a high floor with unobstructed views which presumably bumps up the price.

http://www.mls.ca/propertyDetails.aspx?propertyId=8778861