Real Estate

GTA pre-con condos for investment

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  • Jan 18th, 2021 9:45 pm
[OP]
Sr. Member
Dec 19, 2010
820 posts
272 upvotes

GTA pre-con condos for investment

I know there are a lot of threads already about the condo market crashing...or not. This post isn’t to start another discussion on this front, instead to identify potential properties for long term investment.

I’m interested in a pre-construction condo, possession in 2-3 years. I believe the general rule of thumb is to get something in the $1000-1200 per sqft range. Are there any upcoming developments that are available to book right now in downtown Toronto specifically or in the GTA transit accessible to keep an eye on for rental/investment purposes?

Thanks.
27 replies
Member
Nov 24, 2015
345 posts
214 upvotes
Toronto, ON
I think Burke condos at Bloor and Sherborne (next to Sherborne Subway) is a good value close to that price range.
Deal Fanatic
Mar 27, 2004
5391 posts
3279 upvotes
Toronto
Nothing really right now. there are some exciting projects coming in 2021. just wait a bit
Full-time Realtor
Member
Jul 4, 2018
393 posts
317 upvotes
Eglinton donmills crosstown is strategically good location, just 15 mins TTC ride downtown and relatively quiet area with highways and door step LRT and groceries and scenic valley parks and trails.
By 2032 downtown relief subway line will be built too.
[OP]
Sr. Member
Dec 19, 2010
820 posts
272 upvotes
Some good options, thank you.
Burke seems to be a good option at the “larger” 1BD+den floor plans ($1100/sqft). Unfortunately this is easily $700k+. Another option is a suburban location for a smaller townhome or larger condo at this price point but rental rates and price appreciation will be limited.
Deal Guru
Feb 22, 2011
10196 posts
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Toronto
Doesn't seem like there is much inventory coming down the pipeline.
Deal Guru
Feb 29, 2008
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mazerbeaner wrote: Doesn't seem like there is much inventory coming down the pipeline.
Builders pulling back. Exactly what some have said. They aren't going to build if the return is not the same or better than previously. They will manipulate the numbers by holding back. That's why those who think precon is going to tank have their hands in the sand. The beauty about precon is if you don't see the returns you want, just don't build. Already started building? Delay or cancel the project.
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Nov 5, 2018
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JayLove06 wrote: Builders pulling back. Exactly what some have said. They aren't going to build if the return is not the same or better than previously. They will manipulate the numbers by holding back. That's why those who think precon is going to tank have their hands in the sand. The beauty about precon is if you don't see the returns you want, just don't build. Already started building? Delay or cancel the project.
Yup. Nothing that exciting. It’s been a ton of Mississauga and Oakville condos so far...
Called the bottom.
Deal Guru
Feb 29, 2008
14240 posts
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CondoMan98 wrote: Yup. Nothing that exciting. It’s been a ton of Mississauga and Oakville condos so far...
Those areas have done well during the pandemic. Unaffected. But downtown there isn't much coming down the pipe and aleady some projects have been pushed back. There's no rush.
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Apr 9, 2007
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Toronto, ON
CondoMan98 wrote: Yup. Nothing that exciting. It’s been a ton of Mississauga and Oakville condos so far...
I'm looking forward to see what pricing is like on Golden Mile. Sheppard between Vic Park and Warden was in the 700's psf (incl parking) before covid..
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tczernec wrote: I'm looking forward to see what pricing is like on Golden Mile. Sheppard between Vic Park and Warden was in the 700's psf (incl parking) before covid..
I don’t think we will be seeing 700s psqf again. I’m fairly certain of that. Even 800s will disappear soon.
Called the bottom.
Deal Guru
Feb 29, 2008
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CondoMan98 wrote: I don’t think we will be seeing 700s psqf again. I’m fairly certain of that. Even 800s will disappear soon.
If we do I think we'll have way bigger things to worry about. You still have to buy materials and pay labourers. Those $$ are not going down.
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JayLove06 wrote: If we do I think we'll have way bigger things to worry about. You still have to buy materials and pay labourers. Those $$ are not going down.
I don’t think you can build profitably at those prices. Sure there were condos in the past two years that were sold there. But even suburb condos are in the 900s per foot now. And if it’s too cheap, it probably gets cancelled. I look at every new precon launch and the cheapest I’ve seen this year was 800s in Oakville, and the latter part of the year Oakville projects were even in the 900s. I am having trouble thinking of anything in the 700s.
Called the bottom.
Deal Guru
Feb 22, 2011
10196 posts
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CondoMan98 wrote: I don’t think you can build profitably at those prices. Sure there were condos in the past two years that were sold there. But even suburb condos are in the 900s per foot now. And if it’s too cheap, it probably gets cancelled. I look at every new precon launch and the cheapest I’ve seen this year was 800s in Oakville, and the latter part of the year Oakville projects were even in the 900s. I am having trouble thinking of anything in the 700s.
Toronto pinnacle east is 738 a sq ft and still selling on the last tower I believe. A lot of people will rule it out because it's Scarborough but I bought there because;

Pinnacle is a good builder, they have never cancelled a project.

I think warden and Sheppard has potential, especially if they extend the Sheppard line one day. It's also right by DVP/401.

It's affordable, 738 a sq ft for a new build is a decent price.

No rent control, like all precon now.

They had smaller units in the first two towers so prices started in the mid 300s.

Also I find units in Scarborough tend to have better cash flow, I might even break even on this unit from day 1.

Scarborough has also appreciated more in the last 5 years with many buildings being 100% higher which most downtown might be up 70%, I think this could continue as people get priced out of other areas.

I actually am still kicking myself for not buying more in 2014. I was looking at some 2 bed condo towns on the ground floor for like $130k and now they are $400k... in 6 years.
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Nov 5, 2018
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mazerbeaner wrote: Toronto pinnacle east is 738 a sq ft and still selling on the last tower I believe. A lot of people will rule it out because it's Scarborough but I bought there because;

Pinnacle is a good builder, they have never cancelled a project.

I think warden and Sheppard has potential, especially if they extend the Sheppard line one day. It's also right by DVP/401.

It's affordable, 738 a sq ft for a new build is a decent price.

No rent control, like all precon now.

They had smaller units in the first two towers so prices started in the mid 300s.

Also I find units in Scarborough tend to have better cash flow, I might even break even on this unit from day 1.

Scarborough has also appreciated more in the last 5 years with many buildings being 100% higher which most downtown might be up 70%, I think this could continue as people get priced out of other areas.

I actually am still kicking myself for not buying more in 2014. I was looking at some 2 bed condo towns on the ground floor for like $130k and now they are $400k... in 6 years.
Are you sure they still have inventory? Because if so, I will buy.
Called the bottom.
Deal Addict
Oct 27, 2012
2264 posts
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Toronto
mazerbeaner wrote: Toronto pinnacle east is 738 a sq ft and still selling on the last tower I believe. A lot of people will rule it out because it's Scarborough but I bought there because;

Pinnacle is a good builder, they have never cancelled a project.

I think warden and Sheppard has potential, especially if they extend the Sheppard line one day. It's also right by DVP/401.

It's affordable, 738 a sq ft for a new build is a decent price.

No rent control, like all precon now.

They had smaller units in the first two towers so prices started in the mid 300s.

Also I find units in Scarborough tend to have better cash flow, I might even break even on this unit from day 1.

Scarborough has also appreciated more in the last 5 years with many buildings being 100% higher which most downtown might be up 70%, I think this could continue as people get priced out of other areas.

I actually am still kicking myself for not buying more in 2014. I was looking at some 2 bed condo towns on the ground floor for like $130k and now they are $400k... in 6 years.
Sounds like an interesting project. I could see that being a reasonably in-demand location for the Chinese community, which is just growing in the GTA.
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Nov 5, 2018
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mazerbeaner wrote: Toronto pinnacle east is 738 a sq ft and still selling on the last tower I believe. A lot of people will rule it out because it's Scarborough but I bought there because;

Pinnacle is a good builder, they have never cancelled a project.

I think warden and Sheppard has potential, especially if they extend the Sheppard line one day. It's also right by DVP/401.

It's affordable, 738 a sq ft for a new build is a decent price.

No rent control, like all precon now.

They had smaller units in the first two towers so prices started in the mid 300s.

Also I find units in Scarborough tend to have better cash flow, I might even break even on this unit from day 1.

Scarborough has also appreciated more in the last 5 years with many buildings being 100% higher which most downtown might be up 70%, I think this could continue as people get priced out of other areas.

I actually am still kicking myself for not buying more in 2014. I was looking at some 2 bed condo towns on the ground floor for like $130k and now they are $400k... in 6 years.
I think there is still inventory left. I am going to be doing a lot more research on this now. I am going on urbantoronto to check the progress and stuff. THIS would be an interesting project. Say hello to cash flow! ;)
Called the bottom.
Deal Guru
Feb 22, 2011
10196 posts
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Toronto
CondoMan98 wrote: Are you sure they still have inventory? Because if so, I will buy.
I think so based on buzzbuzz. They had two tall towers they sold our first and now they are selling the podium which is all larger units, even the 1 beds are quite large.

I wanted the other pinnacle project at 1 Yonge until I saw the price list.
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mazerbeaner wrote: I think so based on buzzbuzz. They had two tall towers they sold our first and now they are selling the podium which is all larger units, even the 1 beds are quite large.

I wanted the other pinnacle project at 1 Yonge until I saw the price list.
Ya, I am on Pinnacle's website.

It was obviously delayed. They had a tentative occupancy of 2021...obviously not happening. My Line 5 Condos condo had something similar, and they just started excavating now, more than 2 years later and will be providing an update in Q1.

I will probably be contacting my precon agent about this, because this REALLY interests me. I know they want to do some sort of masterplanned community at the Agincourt mall or whatever, and I can assure you that will be a lot more than this. Moreover, Elad is doing a masterplanned community nearby as well (different than the Elad Fairview masterplanned community that they already built), and you aren't so far from Fairview...
Called the bottom.
Sr. Member
Jul 20, 2003
530 posts
47 upvotes
Yeah I closed on district and bright water.

XO is just stupid expensive. Same with Pinnacle.

As an investor Im not seeing much out there outside Scarborough right now

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