Under-The-Radar Affordable Condos

Posted by Alex Wilson on Friday, October 4th, 2019 at 9:00am.

 

We’ve discussed affordability when investing before, but today we’re going to be digging into some under-the-radar opportunities coming up in Toronto.

The Humber

The Humber is a very unique opportunity being developed at Lawrence West and Weston Road, just 400 meters from the Union Pearson Express and GO Train stop. Taking the UP Express, you can find yourself downtown in just 15 minutes which, from a transportation perspective, is absolutely incredible. With transportation being such a key element in Toronto real estate, this is going to add future value to the property.

In comes the affordable part. You can buy into this project for only 5% down and the pricing is $675 per square foot. That’s literally half the price of a condo in downtown Toronto. There are 2-bedroom units in this project in the low $500s, 3-bedroom units in the low $600s, and large 1-bedroom units in the $400s. This project is all about offering affordable homes with easy access to the downtown core. 

“What’s the catch?” 

You’re right, there is a catch. To buy into this building, you have to be an end user. Meaning you need to move into and live in the unit - no investors allowed. This residential building is being developed by Options For Homes, a not-for-profit developer who’s been around for 25 years. Their whole purpose is to offer affordable living for individuals that are struggling to save for a down payment, which also creates a great opportunity for people that are struggling to get into the ultra-competitive Toronto market. 

Options For Homes is a forward-thinking developer. The first building they developed was in the Distillery District before there even was a Distillery District, which is now one of my, and many other investors, favourite areas for future investments for individuals selling units at over $1000 per square foot. They also built a development called The Heintzman on Heintzman Street in The Junction. Back then, The Junction wasn’t the cool, hip area that everyone wants to live in now. It was an area where they saw potential growth and we know today that they weren’t wrong.

Now they’ve set their sights on the Lawrence and Weston area where there is established public transportation and are creating affordable living situations. As a not-for-profit builder, this company isn’t looking to pay off pension funds or other investors in the project. Any money they make is put back into their down payment assistance program. This is an incredible and exciting area that people are looking to move into and a perfect opportunity for those who are looking to invest but either have affordability issues or getting the down payment started. You’re able to buy with 5% down and get qualified as if you were putting 20% down with their down payment assistance program. 

Remember, real estate is all about playing the long game. This first home will then become your down payment for your next home 5, maybe 10 years down the road.

Reunion Crossing

This project is going up at St. Clair and Weston Road, south of The Junction, nestled between Corso Italia and the big Stockyards development. There are already 2 condo developments successfully launched in the area, Scout and Scout 2. 

In the Reunion Crossing project, in another up-and-coming area, we’re seeing condos averaging at $830 per square foot and stacked homes in the $600,000 range offering affordability for families that mix between freehold and condo living. With the surrounding areas getting more expensive, people will start flooding into the neighbouring communities, such as this one. This development is located on a dedicated transit line, offering easy commute to those who work in the city. 

10 years ago, the Stockyards area didn’t really exist. It was filled with smelly meat packing plants. Now it is developing into a fantastic go-to destination shopping area like Don Mills. All of this in walking distance from the Reunion Crossing development making the perfect spot for a family to move into.

This development does not have any end-user restrictions and is one of the best value projects in Toronto proper. If you’re only looking to invest in a property rather than move into it and find downtown Toronto too expensive, this is a great opportunity for you.

River And Fifth

This last project I wanted to mention today is a little different from the others. This one offers affordability from a deposit standpoint. If after looking at the first 2 developments you’re thinking, “That’s nice, but I’d rather invest in downtown Toronto,” this may be the development you want to invest in.

River And Fifth is a project going up on the east side of the downtown core, and they have a very attractive deposit structure. Basically, you’re looking at 12.5% over the first 720 days, then an additional 12.5% over 1000 days. You’re looking at 15% over nearly 3 years. This project really offers some affordability for those that may not have a down payment up front for an investment condo. By spreading it over a 3-year period, you can make it work and get into your first pre-construction investment condo opportunity. 

First Golf, the commercial arm of Great Gulf, just sold the East Harbour site to Cadillac Fairview, who manage some of the best commercial real estate across Canada. This is important to know because Cadillac Fairview is going to be accelerating the development process on that site. They closed that transaction on September 25th and are already in discussion with tenants for the actual refurbishment of the Unilever Soap factory building. That whole site has already been approved for zoning and the plan is approved for 10 million square feet of commercial space, which can accommodate 70,000 jobs. These 70,000 people are going to want to live near their work. This will become an extension of downtown Toronto flowing into the east end. 

People living in the River and Fifth area are going to be in walking-distance of this whole new downtown core. The downtown Relief Line is going to flow through that area which is going to become a major central hub. Just like Central Station in New York has Penn Station, this location is going to offer that relief station for Union Station, which is nearing capacity for the amount of trains they can accommodate. 

River And Fifth offers a great opportunity and flexibility for you to get into that downtown market and invest in your first pre-construction condo.  

Investing In Affordable Options

Overall, these three developments are incredible under-the-radar opportunities in Toronto that offer affordable options and are perfect for new investors wanting to get into the Toronto marker. You only need 1 to start building your portfolio. 

Now is the best time to get into this competitive market and I can help you do that. Email contact@alexjwilson.com or call/text (416) 996-5181. I’d be happy to schedule a meeting with you and help you make your real estate dreams come true in building your generational wealth and financial freedom.

 

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