the $300k with parking is for lower floors. It's about $340k for 28fl with parking. Hence $493 psf. I think there might be slight misconception on your side? You assume the price you purchase is the current market price at $493 psf. and each year there will be 2.5% growth for next 4 years. I think what should be considered is, what is the current market price right now for exciting condos? Assuming it increases 2.5% per year, you will have the price of condos in 2014. I don't know the Bayview and Sheppard area very well so I don't know what is the current prices and I can't say what it will be in 2014. But it's something to contemplate.
the $300k with parking is for lower floors. It's about $340k for 28fl with parking. Hence $493 psf. I think there might be slight misconception on your side? You assume the price you purchase is the current market price at $493 psf. and each year there will be 2.5% growth for next 4 years. I think what should be considered is, what is the current market price right now for existing condos? Assuming it increases 2.5% per year, you will have the price of condos in 2014. I don't know the Bayview and Sheppard area very well so I don't know what is the current prices and I can't say what it will be in 2014. But it's something to contemplate.
I think you have to look at existing prices in order to build up. Have you considered that maybe the prices of the units may already be inflated to take into account the inflation? I don't think it's all that worth while to buy for preconstruction like it used to be.
I'll give you an example. When I bought a unit downtown in 2003 it was selling around $250-300 psf. I bought at a high floor for $330 psf incl parking (the good old days). Now current prices for recently finished products are around $500-550 psf. and prices are flattening. But preconstruction is going at $600+ psf. Some predict prices will go to $1000 psf. What are the chances? I don't think people living here can afford it. Everyone would need to depend on overseas investors to buy them up. If prices flatten, prices may still be around 600 psf by 2014.
As for the prices being cheaper at sheppard and bayview. Do you think prices from bayview and sheppard will average close to downtown prices? over $500 psf for uptown and $600 psf for downtown?
I think you have to look at existing prices in order to build up. Have you considered that maybe the prices of the units may already be inflated to take into account the inflation? I don't think it's all that worth while to buy for preconstruction like it used to be.
I'll give you an example. When I bought a unit downtown in 2003 it was selling around $250-300 psf. I bought at a high floor for $330 psf incl parking (the good old days). Now current prices for recently finished products are around $500-550 psf. and prices are flattening. But preconstruction is going at $600+ psf. Some predict prices will go to $1000 psf. What are the chances? I don't think people living here can afford it. Everyone would need to depend on overseas investors to buy them up. If prices flatten, prices may still be around 600 psf by 2014.
As for the prices being cheaper at sheppard and bayview. Do you think prices from bayview and sheppard will average close to downtown prices? over $500 psf for uptown and $600 psf for downtown?
What I wanta note is that TANGO IS SELLING FOR LOWER than existing finished products in the area!
Well like Ric says, the bottom floors are reasonable price. The top floors are expensive and not worth it. At $400 psf, it can be considered. But at $480+ psf, it's questionable.
You assume prices will go up 2.5% per year but that might not happen. Prices are already flattening out and even dropping slightly. In my building (2-3 yrs old), asking prices have gone down slightly compared to last year.
And as someone noted in another post, some assignments at Panorama is selling around $440 psf incl. parking and locker (probably a low floor).
Also, I think Daniels building is better built? I briefly saw MLS posting for a Daniels 1+1 townhouse for $299k. They had crown moldings, marble and hardwood floors, stainless steel appliance, granite counter, etc.
This is the one at 299k. It looks to be around 680-700 sq ft. if I compare their maintenance fee to mine.
http://www.realtor.ca/propertyDetails.aspx?propertyId=9635704
This one is 329k. It looks to be smaller cuz the maintenance fee quoted is lower. But it has tandem parking.
http://www.realtor.ca/propertyDetails.aspx?propertyId=9394516
There is a chance market is going up but also a chance market goes down. In the mutual fund prospectus it says "past performance is not indicative of future performance". I'm not saying real estate is a bad thing. Everyone needs a place to live. But just be careful threading on dangerous water. Anyhow, I was expecting my unit to go up 2.5% each year too. Seems market have dipped down 2.5%. If 2011 flattens and 2012 goes up. I will be back up to 2009 price. If 2013 goes up 2.5%, then between 2009-2013, my value will +2.5%.
You are right. I didn't buy into Tango. I did consider buying the lower floors but I got cold feet since I don't know the area well (values, rentals, etc). Since I couldn't calculate for any cushions (rental gains) in case market goes down. I decided not to gamble on it. But reading now how values are around $440 psf, I think the lower floors are a pretty good deal. I don't know the rental earnings in the area, but it might be doable. I think if an investor is investing in RE, they wouldn't sell at a loss. Since this is tangible asset, it would be rented out until things blow over, then sold at a profit. The only time an investor would sell at a loss or break even is if they were forced to pay back debts.
But if you are bullish about the market, then any time is a great time to buy. There's no need to consider anything because anything bought now will turn a profit.
For those buying to live and want to live in the area, I don't think it's such a bad thing to buy on a high floor. You get to choose what you want and you can lock in the price while it gives you a few years to save more for down payment. Whether the market goes up or down, it won't matter cuz you're living in it.
I have the same thought as yours. The lower floor units at the VIP event were good deals. Higher floors without the $10k/$20k incentive are ok if someone plans to live there. How the future will turn out in 4 yrs is still a guessing game. Some people are more aggressive and some are more conservative and will need +ve cash flow to hold on to the unit in case a brief downturn in the market.
Everyone entitles his/her prediction and there is no absolute right or wrong.
i posted it here: http://urbantoronto.ca/showthread.php?13219-Tango-at-Concord-Park-Place
how much did u pay for discovery 1?
What do you think about the higher floors with the VIP discount?
My price not including parking and locker was about 340 per square foot. Of course I worry about this "impending slowdown" everyone is talking about with the HST and interest rates going up but eventually I wanted to buy a place. Tango seems like the interiors are much more upscale than Discovery but the facilities don't look as extensive. Still the same maintenance fees though!