Real Estate

Markham & Ellesmere - Assignment 1 Bed (Deal or TGTBT)

  • Last Updated:
  • Dec 6th, 2019 11:23 am
[OP]
Jr. Member
User avatar
Aug 11, 2019
175 posts
183 upvotes
Toronto

Markham & Ellesmere - Assignment 1 Bed (Deal or TGTBT)

Hello RFD family!

I've been approached with an opportunity to purchase a 1 bedroom unit at Markham/Ellesmere.
384 Sq ft 1 Bed (not legal one bed, see floorplan for explanation on that) on the 5th floor. (No parking, no locker)
https://www.buzzbuzzhome.com/ca/me-livi ... os/ted-384

Now, the offer is to purchase the unit for $280K in a private sale. The maintenance is $200 monthly.

Did I find the deal of the year, or does something seem fishy? It's a brand new building with occupancy already provided to the unit, and closing will be in Sept 2020. I've looked at the unit and it all looks fine to me.

The only thing that is kind of scaring me is that the original price the original buyer purchased it for from the builder was $160K so I'm essentially providing a $120K profit to the original buyer.

Since every sale in this building is done off MLS I have no way of knowing what 'market value' is for this condo project!

Thank you so much... I have until 6pm tomorrow to sign.
Full Time Realtor
GTA & Surrounding Areas
14 replies
Deal Fanatic
User avatar
Sep 8, 2007
8943 posts
10123 upvotes
Way Out of GTA
When $280 for this “seems to good to be true”...we must be coming down with a bad case of FOMO
Deal Addict
Jan 12, 2017
1292 posts
635 upvotes
Not sure how anything might think that $730/sqft and 384 sqft at Markham & Ellesmere is a good buy, nevermind TGTBT!

Anyone looking to rent something that size out there is going to make out better in a rooming house!
Dayravi wrote: Hello RFD family!

I've been approached with an opportunity to purchase a 1 bedroom unit at Markham/Ellesmere.
384 Sq ft 1 Bed (not legal one bed, see floorplan for explanation on that) on the 5th floor. (No parking, no locker)
https://www.buzzbuzzhome.com/ca/me-livi ... os/ted-384

Now, the offer is to purchase the unit for $280K in a private sale. The maintenance is $200 monthly.

Did I find the deal of the year, or does something seem fishy? It's a brand new building with occupancy already provided to the unit, and closing will be in Sept 2020. I've looked at the unit and it all looks fine to me.

The only thing that is kind of scaring me is that the original price the original buyer purchased it for from the builder was $160K so I'm essentially providing a $120K profit to the original buyer.

Since every sale in this building is done off MLS I have no way of knowing what 'market value' is for this condo project!

Thank you so much... I have until 6pm tomorrow to sign.
Sr. Member
Oct 21, 2016
863 posts
634 upvotes
Dayravi wrote: Hello RFD family!

I've been approached with an opportunity to purchase a 1 bedroom unit at Markham/Ellesmere.
384 Sq ft 1 Bed (not legal one bed, see floorplan for explanation on that) on the 5th floor. (No parking, no locker)
https://www.buzzbuzzhome.com/ca/me-livi ... os/ted-384

Now, the offer is to purchase the unit for $280K in a private sale. The maintenance is $200 monthly.

Did I find the deal of the year, or does something seem fishy? It's a brand new building with occupancy already provided to the unit, and closing will be in Sept 2020. I've looked at the unit and it all looks fine to me.

The only thing that is kind of scaring me is that the original price the original buyer purchased it for from the builder was $160K so I'm essentially providing a $120K profit to the original buyer.

Since every sale in this building is done off MLS I have no way of knowing what 'market value' is for this condo project!

Thank you so much... I have until 6pm tomorrow to sign.
Little small but layout is functional , price is good . Maint fees are low . Not familiar with the area, comparables ? Are you renting it out ? What are rents in the area for a similar size unit ? Will you be able to get a mortgage for a unit under 400sq feet easily?
Banned
User avatar
Oct 30, 2019
193 posts
248 upvotes
Toronto
Do the math and make sure it would be cash flowing. That will tell you if it’s a good deal or not.

I don’t know the 905, so I can’t comment on location.
Newbie
Nov 15, 2019
70 posts
27 upvotes
I'm not familiar with prices in Scarborough, although $729 would be almost impossible to find for a new build DT. Assignments are being offered at $850-900/foot in the Vaughan Metro Centre area, which is far from the core, but on the subway line.

Other factors to consider: lay-out of the unit (look at the floor plan), going rate for other similar sized units in new builds in the area, cash flow statement for unit (will your rent cover your expenses, etc.)

Good luck!
Deal Addict
Jan 1, 2017
1335 posts
1175 upvotes
No parking in Marhkam and way less than 500 sq f? Horrible deal, wouldn’t touch it with a 10 foot pole!
Deal Fanatic
User avatar
Feb 2, 2014
8589 posts
2453 upvotes
Toronto
lovestock wrote: Do the math and make sure it would be cash flowing. That will tell you if it’s a good deal or not.

I don’t know the 905, so I can’t comment on location.
Scarborough isn't 905, grrrrr.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Fanatic
User avatar
Feb 2, 2014
8589 posts
2453 upvotes
Toronto
Dayravi wrote: Hello RFD family!

I've been approached with an opportunity to purchase a 1 bedroom unit at Markham/Ellesmere.
384 Sq ft 1 Bed (not legal one bed, see floorplan for explanation on that) on the 5th floor. (No parking, no locker)
https://www.buzzbuzzhome.com/ca/me-livi ... os/ted-384

Now, the offer is to purchase the unit for $280K in a private sale. The maintenance is $200 monthly.

Did I find the deal of the year, or does something seem fishy? It's a brand new building with occupancy already provided to the unit, and closing will be in Sept 2020. I've looked at the unit and it all looks fine to me.

The only thing that is kind of scaring me is that the original price the original buyer purchased it for from the builder was $160K so I'm essentially providing a $120K profit to the original buyer.

Since every sale in this building is done off MLS I have no way of knowing what 'market value' is for this condo project!

Thank you so much... I have until 6pm tomorrow to sign.
I grew up at Markham and Ellesmere (lived there for 20 years). For a condo of that size with no parking, it's not a crazy deal at all.

Not saying it's a bad area, but it doesn't have any great amenities. All the buildings in the area are very old (the older condos sell for $250psf). There is government housing nearby (Tuxedo Court...I'm assuming it's still social housing).

You can buy in Lee Centre for well less than $730psf with parking. Lee Centre condos are a bit older and the complex isn't that great, but you get my point about this not being TGTBT.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
[OP]
Jr. Member
User avatar
Aug 11, 2019
175 posts
183 upvotes
Toronto
Thanks for your comments and advice. I decided not to make an offer as it was not as great of a deal as I initially assumed.

Realized that parking is necessary in these parts of the city!

Shaun80 wrote:
Little small but layout is functional , price is good . Maint fees are low . Not familiar with the area, comparables ? Are you renting it out ? What are rents in the area for a similar size unit ? Will you be able to get a mortgage for a unit under 400sq feet easily?
TorontoHSTRebates wrote: I'm not familiar with prices in Scarborough, although $729 would be almost impossible to find for a new build DT. Assignments are being offered at $850-900/foot in the Vaughan Metro Centre area, which is far from the core, but on the subway line.

Other factors to consider: lay-out of the unit (look at the floor plan), going rate for other similar sized units in new builds in the area, cash flow statement for unit (will your rent cover your expenses, etc.)

Good luck!
CdnRealEstateGuy wrote:
I grew up at Markham and Ellesmere (lived there for 20 years). For a condo of that size with no parking, it's not a crazy deal at all.

Not saying it's a bad area, but it doesn't have any great amenities. All the buildings in the area are very old (the older condos sell for $250psf). There is government housing nearby (Tuxedo Court...I'm assuming it's still social housing).

You can buy in Lee Centre for well less than $730psf with parking. Lee Centre condos are a bit older and the complex isn't that great, but you get my point about this not being TGTBT.
Full Time Realtor
GTA & Surrounding Areas
Member
Feb 13, 2017
369 posts
347 upvotes
toronto, ontario
CdnRealEstateGuy wrote: You can buy in Lee Centre for well less than $730psf with parking. Lee Centre condos are a bit older and the complex isn't that great, but you get my point about this not being TGTBT.
Ouch, I feel personally attacked. LOL
Deal Fanatic
User avatar
Feb 2, 2014
8589 posts
2453 upvotes
Toronto
PhotoSmurf wrote: Ouch, I feel personally attacked. LOL
Lol sorry. I have a good friend who lived there about 15-20 years ago....hoping he doesn't read my post either.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Expert
User avatar
Jan 27, 2004
44635 posts
7737 upvotes
T.O. Lotto Captain
CdnRealEstateGuy wrote: Lol sorry. I have a good friend who lived there about 15-20 years ago....hoping he doesn't read my post either.
Arent those buildings well managed and quAlity build materials?
Old and crusty looking from age. But well managed... thats what i usually hear about them.
Deal Fanatic
Feb 22, 2011
9664 posts
11868 upvotes
Toronto
You would have to pay the $120,000 appreciation out of pocket as well as their deposits of probably $40k since it's an assignment and there is no mortgage yet.
Deal Fanatic
User avatar
Feb 2, 2014
8589 posts
2453 upvotes
Toronto
UrbanPoet wrote: Arent those buildings well managed and quAlity build materials?
Old and crusty looking from age. But well managed... thats what i usually hear about them.
I haven't seen their financials, but those condos have had issues in the past (crime) and sell for cheap.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

Top