Real Estate

Festival Condos Vaughan - where’s the hype?

  • Last Updated:
  • Nov 16th, 2020 11:49 pm
Deal Addict
Dec 20, 2018
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CondoMan98 wrote: People forget how expensive it is to build condos. It isn't just hard costs like concrete...you also have to consider soft costs that the city keeps charing builders to develop. I am critical of high prices, but I completely understand them. They aren't going away and the cost to build will only go up as labour, materials, and soft costs continue to increase.

As an investor, it just means you have to be more selective with the product that comes to market. You can make money buying precon, you just have to know which neighbourhood and projects to look for.
Well builders are pretty much passing through the municipal/soft costs directly to buyers charging everything from parkland levy to community art to any increases in levies, edcs and really only capping DC increases yet DCs are set to time of approvals.

These were all costs builders absorbed in the past as part of the selling price.

Construction costs have gone up a lot and that's what's screwed a lot of the high density builders as their proforma for construction costs increasss were way above what they guessed when they sold all their units at the time

Condos are expensive to build especially with how much steel prices have gone up due to the trump tariffs and shortage of workers with so many projects going on in the GTA . Also ever improving building codes for multi unit residential adds cost, meanwhile ground related freehold products don't have as stringent standards on everything from doors to fire suppression and etc

Edit

Ground related developers have the same soft costs but don't pass it on as separate charges like condo developers do. The argument used to be ground related products have less time btwn sale and construction so the soft costs are more certain but DCs are now fixed to time of approvals, so unless developers are selling well before approvals (way less likely nowadays) they know how much it is.

Moreover, it used to be "increase " in DCs were passed on to buyers from condo developers with the rationale that the increase was unexpected but now they're just treating it like an admin fee at car dealerships and it's not really an increase let alone unexpected one
Last edited by StatsGuy on Sep 15th, 2020 12:07 pm, edited 1 time in total.
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Jun 6, 2009
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any updates on new releases, price increases, or sales for this project?
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cleardevil wrote: any updates on new releases, price increases, or sales for this project?
From what I hear - both towers are almost sold out (Sold out refers to 70% sold, other units will come out later).

Not many units left from this release - The units that "regular agents" will be able to get will essentially be those that are cancelled within the 10 day cooling off period
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Sep 14, 2020
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First time condo buyer here, purchased a 2 bedroom and 2 bath unit (699sf)

Recently move to Toronto from Bay Area and am selling my assets there and starting up in Canada.

Hoping this can be cash flow neutral with a 40% down payment, will be buying 3-5 preconstruction condos over the next year.

Curious if the forum thinks this is a good purchase for a 10-25 year horizon
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techVcondo wrote: First time condo buyer here, purchased a 2 bedroom and 2 bath unit (699sf)

Recently move to Toronto from Bay Area and am selling my assets there and starting up in Canada.

Hoping this can be cash flow neutral with a 40% down payment, will be buying 3-5 preconstruction condos over the next year.

Curious if the forum thinks this is a good purchase for a 10-25 year horizon
This is a hotly debated project, theres a side that thinks its over priced...theres a side that thinks though its priced high, its still worth it and will see good growth (I'm on the latter)
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deal_with_singh wrote: From what I hear - both towers are almost sold out (Sold out refers to 70% sold, other units will come out later).

Not many units left from this release - The units that "regular agents" will be able to get will essentially be those that are cancelled within the 10 day cooling off period
thanks for the update. thats pretty quick, i guess precon appetite is high
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cleardevil wrote: thanks for the update. thats pretty quick, i guess precon appetite is high
Literally every project sells out. It’s really hot.
I do not need approval, I do not need friends. I do what I want.
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Better off buying houses rather than 5 condos. You will run cash positive for sure and appreciate way more and never have trouble selling or renting
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deal_with_singh wrote: From what I hear - both towers are almost sold out (Sold out refers to 70% sold, other units will come out later).

Not many units left from this release - The units that "regular agents" will be able to get will essentially be those that are cancelled within the 10 day cooling off period
Correction on this: south tower is pretty much sold except a handful of units and for what they kept for the continual releases later.

North tower, only ~20% of the units were provided in first allocations. Allocations going out tomorrow for the rest, but expect a price increase
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of course price increases.
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deal_with_singh wrote: Correction on this: south tower is pretty much sold except a handful of units and for what they kept for the continual releases later.

North tower, only ~20% of the units were provided in first allocations. Allocations going out tomorrow for the rest, but expect a price increase
oasis100 wrote: of course price increases.
Is that true? I heard that they were not looking to increase prices on the next release. When you guys get new allocations, please confirm whether there has been or not?
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Dec 12, 2011
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techVcondo wrote: First time condo buyer here, purchased a 2 bedroom and 2 bath unit (699sf)

Recently move to Toronto from Bay Area and am selling my assets there and starting up in Canada.

Hoping this can be cash flow neutral with a 40% down payment, will be buying 3-5 preconstruction condos over the next year.

Curious if the forum thinks this is a good purchase for a 10-25 year horizon
Welcome to Toronto/GTA. Spent time in San Fran long ago and loved the cool vibe and weather there. What housing type/neighbourhood are you planning to purchase in for your primary? Do you plan to live here for the next 10 to 25 years?
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cleardevil wrote: Is that true? I heard that they were not looking to increase prices on the next release. When you guys get new allocations, please confirm whether there has been or not?
There’s been a few releases since the start. They slowly released allocation from the original launch up until yesterday

The fact that what’s coming out today is a “different round” has me convinced prices will increase otherwise would be no different from the last few days
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I am on the fence about price increases, they came out high right out of the gate and while the project was "hot" (I use the term loosely because everything is "hot", meaning demand being normal opposed to "on fire" being above average from "hot") I think they will tread lightly on the next round.

Let's see.
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techVcondo wrote: First time condo buyer here, purchased a 2 bedroom and 2 bath unit (699sf)

Recently move to Toronto from Bay Area and am selling my assets there and starting up in Canada.

Hoping this can be cash flow neutral with a 40% down payment, will be buying 3-5 preconstruction condos over the next year.

Curious if the forum thinks this is a good purchase for a 10-25 year horizon

Where in the bay were you? There are some analogies to draw in terms of how pricing was affected around Palo Alto/MV, San Jose, to the gentrification happening in Tenderloin or Oakland. Lot's of parallels to Toronto, but our real estate doesn't 'scale' like the bay does/did although we are a runner up after SF in a constant fight with Seattle for second place.
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