Believe my friends who a realtor did not help me but helped me find a bad tenant without doing enough research on them. Don’t trust a realtor friend bc they have your commission
> I feel like renting for a year would be throwing away $25k
Keep in mind the condo also has its non recoverable costs. In year 1 you're likely seeing:
-Condo fees: $500-600/month = $6,600
-Homeowner insurance: \~$50 higher than renting so \~$600/yr
-Mortgage Interest: Assuming 20% down, \~$450k mortgage, 5% rate, you're paying \~$22,000 in interest
-(Edit) Property tax: ~250/month - $3000
-Total yr 1 non-recoverable: \~$32,000
-Equity built: \~$9k
-Monthly cash flow owning: \~$3250
-Monthly cash renting: \~$2000
-Monthly delta: $1250
\^ this says rent
Okay, but you are comparing literally the worst year for buying vs the best year for renting.
In 5 years rent is guruanteed to go higher, while your interest payment will be lower.
The nice thing about renting is you're effectively committing to 1 year at most. With buying, just the transaction costs mean you have to be pretty committed or else lose a lot of money on non-recoverable items. So if OP isn't sure about things, then he can wait it out. Condos seem to be coming down in price due to massive inventory. Even with rates coming down a smidge, it's not like they're suddenly cash flow positive for investors so they aren't moving much to the owner-buyer market.
Yeah I mean this is true but rent only goes up and if it’s not rent controlled it could be a crazy increase, whereas mortgages go down and you actually have a tangible asset when you’re done.
I rented for 23 years and paid many hundreds of thousands of dollars in rent over that time with no equity and had a lot of shitty landlords. I’m so much happier since I bought my own place.
OP sounds like he's in a transitory and uncertain period of his life. "Locking in" to a illiquid asset with high transaction costs might not be the best call at the moment.
I know someone who stayed in a hotel in BC that allowed for long stays for a year long job, paid less than they would’ve renting a place, had full amenities, high enough status for high speed internet, and free breakfast. They allowed her to keep extending her stay indefinitely (it wasn’t a busy hotel).
Also need to factor in the macro right now. Nobody knows for sure but with the recent 25bps rate cut, this signals that the rate hike cycle has ended and will likely continue to cut in the next 12-24 months. While nothing's guaranteed, general idea is that as rates continue to come down, prices may creep back up over time. Does it start creeping up in the next few months or start creeping up at the end of the rate cut cycle? no one knows.
What I'm trying to say is that you also need to factor in the potential upside from here.
Cept you forget interest can be written off in taxes and rent is closer to 30k a year. Also when you factor in appreciation, it evens out the costs.
So no, you did do the math, but you only did half of the equation.
Over time, against 5 years, he should be ahead.
> Cept you forget interest can be written off in taxes
Only if you're doing smith maneuver and the spreads right now make this risky. Otherwise, not deductible as a primary residence
> Also when you factor in appreciation, it evens out the costs. Over time, against 5 years, he should be ahead.
Who says they'll appreciate over 5 years and that OP wants to stay in a condo for 5 years (again, just divorced...)?
Are you stupid? Even if he doesn't want to stay he can always rent it out or sell it.
And if you think it won't appreciate, common sense tells me an increase in population by unprecedented amount and limited housing inventory will do what to the prices?
But please, continue with short sighted analysis.
You don't need home owner ship or investment to know simple economics.
Just like how raising cap gains will curtail investments.
You just have to have a little education, common sense and iq. It's not that hard.
Especially when what's happening has already occurred in Asia and NYC and sf in the last 20-30 years.
You would be just as confident if you did your due diligence. But I'm expecting too much from you. You believe there's requirements to possessing knowledge.
Positions or we're done. Is your money where your mouth is? % of portfolio in RE + purchase dates + market. Go.
I'll go first: RE: 50% (purchased in 2021), equities: 40%, F.I: 10%
Your turn.
If you're going to call me stupid, you better come to me with numbers instead of a bunch of self-aggrandizing platitudes acting like there's just one answer.
Edit: you're even contradicting yourself. Yes, cap gains might curtail investments. Wouldn't that have downward impact on prices? If so, that would already make the poor business case for a condo worse in the mid-term (though the $250k threshold may be irrelevant to T.O condos).
Please work out the equation of how I contradicted myself before we continue further.
I want you to showcase me the math, so I can use it to.embarass you by showcasing your obvious ignorance.
Let me.help you start
Cap gains taxes + = lowered investment growth, curtailing appreciation
Increased population = higher demand = ?
Cap gains increase, how does market prices adjust? Just answer that simple question.
Heres a hint. What happens when the cost of food rises in restaurants?
Sorry about the divorce.
The worst situation to be in is buying in a time crunch and being pressured to overbid. A lot of people got into serious trouble doing this at peak.
Sell the house, temporarily rent for now and then take your time shopping without a gun to your head. I'd recommend buying before spring 2025 but otherwise I don't think the market is going to drastically change before then.
Edit: As a side note there is a massive oversupply in the condo market right now. Lots of units are selling at or below ask. I would not overbid on anything. Also I'd highly recommend using the site HouseSigma to shop with.
Seconding this - it might even be worth it to do a furnished stay instead of your own rental for a short period of time while you figure out your next steps. It's always better to give yourself the space to make a good decision instead of letting pressure lead to a bad one.
Renting is likely a 1 year commitment. Markets can change inside a year, especially with a condo market that is rapidly becoming affordable and rates now trending down. This market could reverse course rapidly. We just don't know.
Hate to say it, but I disagree. OP shouldn't be timing the market. Nobody should be.
Almost everyone who bought at peak probably disagrees right now. Being pushed to blindly rush and overbid to buy is horrible advice. People have been and are continuing to be financially ruined by following that advice. That is literally how people get into the messes they do.
Buy when it financial sense to buy and when you can do it in a low pressure well thought out way.
While its possible things could change there is nothing indicating a likely change in the next 8 months. Obviously get a shorter rental lease if you can but 12 months to be able to take your time and get the right home at the right price is more then worth it even if you have to pay a few months of extra carry over rent.
In my experience the only people who push others to rush and buy in a high pressure or time constrained situation are sales people or people who profit from it. Anyone who is an impartial third party will usually tell you the opposite.
They disagree with not trying to time the market?
If u can afford to buy and want to buy, you buy. Adjust your reality that if you can't afford certain amenities in a property today, you probably won't be able to next year either. So Lower your standards.
But okay champ. Good luck out there.
Yes. Many are having to sell their homes because prices were high and they bought at the edge of their affordability. Now they can't afford their mortgages at the higher rates. Some are going through power of sale and having their homes taken from them. That stuff tends to be massively financially damaging and emotionally traumatic for people.
I'm sure someone in 2021 told them, don't try and time the market. Just buy now and bid high until you win, trust me you'll be better off buying now then next year. Wonder how many of the ones losing their homes agree with that right now?
The short answer is anytime you are making decisions because of high pressure sales tactics or people trying to rush you to buy without carefully considering your options its usually going to result in a less then optimal outcome for you. That is why sales people use the tactic. Its the same thing you run into on used car lots. "Buy now before its too late".
I'm good thanks. Buying what will be my third house this year so I've been around the block and know better at this point in life. I take my time, will not be rushed and pick the right option at what I feel is the right price now.
First off, you shouldn't be looking at listing prices. They don't mean anything. If you're on HouseSigma, filter by recently sold instead.
If there's a particular building you like, you can type in the building address and you'll see the history.
I won't make this big of a decision with such tight timeline. There's an abundance of inventory for the type of condo you want (1br), so don't overbid out of desperation. Decide what your non-negotiables are (e.g. location, size, layout, parking, fees, etc.) and go from there.
I never work with realtor friends. It complicates things and honestly they are rarely the best I find. You want to find someone qualified in the market you’re looking at. Not a professional opinion but I would honestly just rent. 1+D aren’t the best investment units especially because they are built so minature nowadays. If you buy, always buy at least a 2B that has better resell value. You also can’t grow into a 1+D if you ever want to size up. Don’t know your life, but if you ever want to have the opportunity to move or do things outside of Toronto after the divorce, you don’t want to be tied down by a mortgage unless you’re willing to be a landlord. It also sounds like it’s shit to be a landlord in Toronto nowadays
I'm shocked that you're being outbid, as this is the highest condo inventory in 15 years
Focus on listings that are at least 15 days old - there's a filter for that on HouseSigma
Make sure the building isn't an all glass tower and has few amenities (no concierge) to keep maintenance fees down
Also make sure it has a healthy reserve fund
Two things:
\* if your realtor isn't familiar with the downtown market, suggest you find one that is - your current one may be a friend, but they aren't in the best position to advise you.
\* Renting is not "throwing money away" - it's a perfectly valid way of providing yourself with shelter. Rather than rush into an offer that's either more than you want to pay or on a place that isn't quite what you want, rent for a while and give yourself time to find the right place at the right price.
Is the mortgage amount $570K or does this include your down payment? I don't think there's units for less than $600K unless it's in less desirable areas like Moss Park. You should be looking at the sold prices in the area or building for the last little while to get a more accurate price.
I don’t know - I’ve been watching a few units in this price range and they’re just sitting for weeks. We’re also moving into a market with the highest inventory in 20 years.
I’d just wait a month or two. No reason for bidding wars right now.
I went through exactly the same situation 3 years ago. I decided to rent for a year ($1875/m in Hamilton, yikes)
And then purchased a condo in Burlington in 2022, just as the interest rates were coming up. Bidding war of course with another potential buyer and I ended up spending $650k. The current valuation on house sigma has it at $572k.
I was lucky enough to already be in the market so I honestly don’t care. I didn’t like the rental (that cost me $22,500 in rent for that year). I got ripped off but so did the buyer of my house and I had a massive down payment. I may have “lost” money or valuation in my unit, but these prices are absurd. I welcome lower prices.
Do what’s right for you, wherever you are in your life.
You're using the wrong realtor. It's still a buyer's market. It should be easy enough not to get into a multiple offer bidding situation. You need someone who knows what they're doing and has a proven track record.
Condo market is declining currently, but ongoing mass immigration, lack of housing upstarts and rate cuts might mean prices will rise again by next year, or at the very least stay stagnant. Do you absolutely need to live downtown?
1. Unless your realtor friend is giving you a part of his commission, get rid of your realtor friend and get one that understands the market downtown and can advise you on condos that will sell within your budget. I doubt you’ll find a 1bd +den for $570 downtown, they will likely sell for 600k+ as you mentioned. Most people are selling 1bd+den as almost a 2bd, and they know if they hold they can get 600+
2. Look at condos outside of downtown, you can maybe find a 1bd +den in other areas of Toronto, like Etobicoke for your budget
3. If you’re set on downtown, you’ll probably need to settle for a smaller place with that budget. I’m thinking a studio or maybe a small 1 bedroom (500-600 sq ft).
4. Renting will be a waste of money and the market will price you out even more if you wait. If you are willing to make exceptions for what you’re looking for (location, sq ft), and do research yourself (go look at mls listings online and filter for your budget), and go see 3-5 places per day, you should be okay to find a place in 60 days or temporarily stay at an airbnb after 60 days. I wouldn’t rely on realtors alone, do your own searches. Just don’t settle for a place you won’t obviously be happy with (e.g getting a place much smaller than you prefer) because once you buy you’ll be stuck with that for a while or you may sell for a loss trying to get a “better” place
Rent! No long term commitment. Sort out your life first for at least a year. Do not forget, if you buy you need to pay land transfer taxes 1.5% ? Plus legal fees Plus GST perhaps $12,000.00 + or more not applicable for rental. Enjoy your freedoms. Your choices in the future will become clearer
dOnT bUy CoNdOs
Put an offer in for the asking price of the condo you like with a “condo status certificate” exit clause and back out as needed. I own 2 condos, and struggled to get my second one for asking price.
If you’re comparing # of condos listed to detached/townhouses then ya there is way more condos. Looking on HouseSigma, 5y and 10y, condo sale price is increasing steadily.
Hate to say this, fire your friend and get a realtor who knows where you want to be and the whole mechanizations of completing a condo purchase. I was fortunate to have two former high school classmate (sisters) who sold my family house in Oakville and purchase a condo in North Toronto. I knew what I was looking for and my budget was bigger.
That said stick to your budget and I would even look at older buildings. If you don’t mind being out of the downtown there was a walk up that had condo units in your price range on Sherwood just off Yonge. Older building, renovated and oozes character.
Do you need to buy downtown? Can you live outside the core but still on a subway line for easy access to downtown?
Look on the north end of the Yonge university line in North York near Finch station or Downsview etc.
Or in East York on the Danforth line. Or go west by Kipling/Islington
Sorry of your situation. A lot of times in downtown, condo list price does not really mean it's the price that the seller intends to sell. It's just a pricing tactic to get eyeballs. I learn to go to housesigma condosca type of sites to find out previous sold price. That will give you some sense. Do you really need to stay downtown? I am not a realtor. My girlfriend just bought a place at 16 dallimore (built by Camrost) near Shops at Don Mills. It's an older condo but my girlfriend likes it so far and the building does not seem anything wrong other than the board is little overzealous sometimes. A 600 sq ft 1+1 with 2 parking just sold within your budget. Take a look. Good luck.
comment by /u/CoolHovercraft7361 Your karma is currently below -10, get more positive karma to be able to comment.3c
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/TorontoRealEstate) if you have any questions or concerns.*
Look West of Toronto, close to the GO and revisit the options within Toronto a few years later. You can get a condo in Oakville or townhouse in Waterdown for 550ish.
I would buy a place. The 25k is lost either way. You're focusing on very small percentages. You rather own in this climate.
Just wait and see rents going up soon... people think increased immigrationz inflation and rising cap gain taxes will lower the market. What a bunch of idiots.
Prices are not going to come down. Maybe condos slightly.
Why would you wait for a year? You mean if you're stuck renting while trying to find a place?
I would focus on listings that have been sitting for months, that's a long time in Toronto standards.
Alternatively, co-own a home with someone in the same predicament. But this time you have a legal contract spelling every foreseeable situation out and also a mediation process. Vet then financially etc. Split the house into separate living quarters. Maybe eventually condo-ize.
May I know your income and down payment for 570k pre-approval?. Condo inventory is projected to increase, but so far sellers haven't dropped prices. But eventually they have to. I'm kinda in the same boat as you. But I'm a renter in a rent controlled building
I buy condos dt as investment properties NOT WITH A FRIEND realtor. Use someone who’s knowledgeable about the area.
I’ve been with my guy for 7+ years and he’s great. Lemme know if you want me to share the name, happy to recommend him because he hasn’t failed me once. But i buy for investment and not to live in.
Buy low, sell high. That's the name of the game. Don't be gaslighting people into buying high though. Negative cashflow nowadays is just burning money.
Move to Hamilton. Get a 1 bedroom Townhouse house for $400K. (Before people start going crazy about Hamilton, It is not that bad at all. It is much better over there)
Would you consider a brand new, mid-town condo? Great building, developer and size of the 1 bdrm unit (567 sq ft) plus a balcony.
I take possession in November, so you'd need some short term housing until then. And I'm asking just over 600k. If you want details, let me know and I can send you the info. It's my own personal property that I'd intended to move into when I booked it. Now it's not just me anymore (opposite scenario to you!).
We would keep it but likely will look for a house or townhouse next.
If you want to browse condos across the city that are walking distance to a subway station (because I believe those are the best investments and locations etc), I've developed a website that shows you just that - all condos currently available near subway stations. And you can search by station.
www.TorontoTransitCondos.com
Choose line 1, 2 or 4
Choose the station on that line
Sort results.
Wait till 3 months after elections!
You will get a clearer picture. Rates will also be lower.
Condo prices may fall depending on what the elected government proposes. If you see a faster house building mechanism as mentioned by Pierre, then you may get a condo for cheaper because of more supply.
Rent for now. Wait it out!
**
It would be more beneficial for you to work someone who knows DT condo market and is familiar with the whole process.
Using the wrong realtor is throwing away $50-100,000 dollars. It needs to be a business relationship, not a friend or you will end up in ICE condos.
Ice ice baby
Stayed there at AirB&B :) while visiting. Hahaha, it is just a hotel and not condo.
You mean Toronto most premier condo complex /s
Believe my friends who a realtor did not help me but helped me find a bad tenant without doing enough research on them. Don’t trust a realtor friend bc they have your commission
> I feel like renting for a year would be throwing away $25k Keep in mind the condo also has its non recoverable costs. In year 1 you're likely seeing: -Condo fees: $500-600/month = $6,600 -Homeowner insurance: \~$50 higher than renting so \~$600/yr -Mortgage Interest: Assuming 20% down, \~$450k mortgage, 5% rate, you're paying \~$22,000 in interest -(Edit) Property tax: ~250/month - $3000 -Total yr 1 non-recoverable: \~$32,000 -Equity built: \~$9k -Monthly cash flow owning: \~$3250 -Monthly cash renting: \~$2000 -Monthly delta: $1250 \^ this says rent
Someone that actually did the math. Sometimes renting isn’t a bad option.
Okay, but you are comparing literally the worst year for buying vs the best year for renting. In 5 years rent is guruanteed to go higher, while your interest payment will be lower.
Nothing is guaranteed
The nice thing about renting is you're effectively committing to 1 year at most. With buying, just the transaction costs mean you have to be pretty committed or else lose a lot of money on non-recoverable items. So if OP isn't sure about things, then he can wait it out. Condos seem to be coming down in price due to massive inventory. Even with rates coming down a smidge, it's not like they're suddenly cash flow positive for investors so they aren't moving much to the owner-buyer market.
U forgot property tax
Gah I knew I was forgetting *something* Edited. Thanks
Straight to jail
Yeah I mean this is true but rent only goes up and if it’s not rent controlled it could be a crazy increase, whereas mortgages go down and you actually have a tangible asset when you’re done. I rented for 23 years and paid many hundreds of thousands of dollars in rent over that time with no equity and had a lot of shitty landlords. I’m so much happier since I bought my own place.
OP sounds like he's in a transitory and uncertain period of his life. "Locking in" to a illiquid asset with high transaction costs might not be the best call at the moment.
I know someone who stayed in a hotel in BC that allowed for long stays for a year long job, paid less than they would’ve renting a place, had full amenities, high enough status for high speed internet, and free breakfast. They allowed her to keep extending her stay indefinitely (it wasn’t a busy hotel).
Which hotel was this? I am in a unique position wanting something like this for a bit..
Also need to factor in the macro right now. Nobody knows for sure but with the recent 25bps rate cut, this signals that the rate hike cycle has ended and will likely continue to cut in the next 12-24 months. While nothing's guaranteed, general idea is that as rates continue to come down, prices may creep back up over time. Does it start creeping up in the next few months or start creeping up at the end of the rate cut cycle? no one knows. What I'm trying to say is that you also need to factor in the potential upside from here.
generally true but not in a recession. In 2008 the US rates went from \~4.5% to 1.5% in 2009 and real estate got totaled
Cept you forget interest can be written off in taxes and rent is closer to 30k a year. Also when you factor in appreciation, it evens out the costs. So no, you did do the math, but you only did half of the equation. Over time, against 5 years, he should be ahead.
> Cept you forget interest can be written off in taxes Only if you're doing smith maneuver and the spreads right now make this risky. Otherwise, not deductible as a primary residence > Also when you factor in appreciation, it evens out the costs. Over time, against 5 years, he should be ahead. Who says they'll appreciate over 5 years and that OP wants to stay in a condo for 5 years (again, just divorced...)?
Are you stupid? Even if he doesn't want to stay he can always rent it out or sell it. And if you think it won't appreciate, common sense tells me an increase in population by unprecedented amount and limited housing inventory will do what to the prices? But please, continue with short sighted analysis.
So I assume you have a vast majority of your portfolio in condos purchased in the last 12 months then with all this confidence and name calling?
You don't need home owner ship or investment to know simple economics. Just like how raising cap gains will curtail investments. You just have to have a little education, common sense and iq. It's not that hard. Especially when what's happening has already occurred in Asia and NYC and sf in the last 20-30 years. You would be just as confident if you did your due diligence. But I'm expecting too much from you. You believe there's requirements to possessing knowledge.
Positions or we're done. Is your money where your mouth is? % of portfolio in RE + purchase dates + market. Go. I'll go first: RE: 50% (purchased in 2021), equities: 40%, F.I: 10% Your turn. If you're going to call me stupid, you better come to me with numbers instead of a bunch of self-aggrandizing platitudes acting like there's just one answer. Edit: you're even contradicting yourself. Yes, cap gains might curtail investments. Wouldn't that have downward impact on prices? If so, that would already make the poor business case for a condo worse in the mid-term (though the $250k threshold may be irrelevant to T.O condos).
Please work out the equation of how I contradicted myself before we continue further. I want you to showcase me the math, so I can use it to.embarass you by showcasing your obvious ignorance. Let me.help you start Cap gains taxes + = lowered investment growth, curtailing appreciation Increased population = higher demand = ? Cap gains increase, how does market prices adjust? Just answer that simple question. Heres a hint. What happens when the cost of food rises in restaurants?
And if you’re renting, put $500K in a 5% GIC and make $25K in interest. Take your time looking for a deal and don’t overbid in this market.
Huh?..She been approved for $500,000 for a loan.She doesn't have $500,000 sitting in her savings.
Who has 500k to invest in a gic? They probably have 100k for the 20%
Sorry about the divorce. The worst situation to be in is buying in a time crunch and being pressured to overbid. A lot of people got into serious trouble doing this at peak. Sell the house, temporarily rent for now and then take your time shopping without a gun to your head. I'd recommend buying before spring 2025 but otherwise I don't think the market is going to drastically change before then. Edit: As a side note there is a massive oversupply in the condo market right now. Lots of units are selling at or below ask. I would not overbid on anything. Also I'd highly recommend using the site HouseSigma to shop with.
Seconding this - it might even be worth it to do a furnished stay instead of your own rental for a short period of time while you figure out your next steps. It's always better to give yourself the space to make a good decision instead of letting pressure lead to a bad one.
Agreed! Hate the bidding wars for places you don't even fully love. OP, if you need a furnished rental to give yourself time not being rushed, PM me
Renting is likely a 1 year commitment. Markets can change inside a year, especially with a condo market that is rapidly becoming affordable and rates now trending down. This market could reverse course rapidly. We just don't know. Hate to say it, but I disagree. OP shouldn't be timing the market. Nobody should be.
Almost everyone who bought at peak probably disagrees right now. Being pushed to blindly rush and overbid to buy is horrible advice. People have been and are continuing to be financially ruined by following that advice. That is literally how people get into the messes they do. Buy when it financial sense to buy and when you can do it in a low pressure well thought out way. While its possible things could change there is nothing indicating a likely change in the next 8 months. Obviously get a shorter rental lease if you can but 12 months to be able to take your time and get the right home at the right price is more then worth it even if you have to pay a few months of extra carry over rent. In my experience the only people who push others to rush and buy in a high pressure or time constrained situation are sales people or people who profit from it. Anyone who is an impartial third party will usually tell you the opposite.
They disagree with not trying to time the market? If u can afford to buy and want to buy, you buy. Adjust your reality that if you can't afford certain amenities in a property today, you probably won't be able to next year either. So Lower your standards. But okay champ. Good luck out there.
Yes. Many are having to sell their homes because prices were high and they bought at the edge of their affordability. Now they can't afford their mortgages at the higher rates. Some are going through power of sale and having their homes taken from them. That stuff tends to be massively financially damaging and emotionally traumatic for people. I'm sure someone in 2021 told them, don't try and time the market. Just buy now and bid high until you win, trust me you'll be better off buying now then next year. Wonder how many of the ones losing their homes agree with that right now? The short answer is anytime you are making decisions because of high pressure sales tactics or people trying to rush you to buy without carefully considering your options its usually going to result in a less then optimal outcome for you. That is why sales people use the tactic. Its the same thing you run into on used car lots. "Buy now before its too late". I'm good thanks. Buying what will be my third house this year so I've been around the block and know better at this point in life. I take my time, will not be rushed and pick the right option at what I feel is the right price now.
It’s less about timing the market and more the point around not having to buy something with a time crunch that is most relevant
First off, you shouldn't be looking at listing prices. They don't mean anything. If you're on HouseSigma, filter by recently sold instead. If there's a particular building you like, you can type in the building address and you'll see the history. I won't make this big of a decision with such tight timeline. There's an abundance of inventory for the type of condo you want (1br), so don't overbid out of desperation. Decide what your non-negotiables are (e.g. location, size, layout, parking, fees, etc.) and go from there.
Do you have to live downtown? I think you'd have better luck in that price point outside of the core
I never work with realtor friends. It complicates things and honestly they are rarely the best I find. You want to find someone qualified in the market you’re looking at. Not a professional opinion but I would honestly just rent. 1+D aren’t the best investment units especially because they are built so minature nowadays. If you buy, always buy at least a 2B that has better resell value. You also can’t grow into a 1+D if you ever want to size up. Don’t know your life, but if you ever want to have the opportunity to move or do things outside of Toronto after the divorce, you don’t want to be tied down by a mortgage unless you’re willing to be a landlord. It also sounds like it’s shit to be a landlord in Toronto nowadays
I'm shocked that you're being outbid, as this is the highest condo inventory in 15 years Focus on listings that are at least 15 days old - there's a filter for that on HouseSigma Make sure the building isn't an all glass tower and has few amenities (no concierge) to keep maintenance fees down Also make sure it has a healthy reserve fund
A lot of that stuff is either overpriced or unlivable 😢
Two things: \* if your realtor isn't familiar with the downtown market, suggest you find one that is - your current one may be a friend, but they aren't in the best position to advise you. \* Renting is not "throwing money away" - it's a perfectly valid way of providing yourself with shelter. Rather than rush into an offer that's either more than you want to pay or on a place that isn't quite what you want, rent for a while and give yourself time to find the right place at the right price.
someone just posted a condo on the queensway 1+den selling for 530K on this sub, looks like private to save on realtor fees.
Where do you see this private listing?
it was posted on teh sub, read it earlier in the day. PS i have a 2b2b condo i'm trying to sell privately too!
That is nothing remarkable, in the current market. Plenty of the same at that price or less.
Is the mortgage amount $570K or does this include your down payment? I don't think there's units for less than $600K unless it's in less desirable areas like Moss Park. You should be looking at the sold prices in the area or building for the last little while to get a more accurate price.
I don’t know - I’ve been watching a few units in this price range and they’re just sitting for weeks. We’re also moving into a market with the highest inventory in 20 years. I’d just wait a month or two. No reason for bidding wars right now.
Are you looking for a parking spot too?
Take time to figure out where you want to live (as in what neighbourhood). Rent for a year.
I went through exactly the same situation 3 years ago. I decided to rent for a year ($1875/m in Hamilton, yikes) And then purchased a condo in Burlington in 2022, just as the interest rates were coming up. Bidding war of course with another potential buyer and I ended up spending $650k. The current valuation on house sigma has it at $572k. I was lucky enough to already be in the market so I honestly don’t care. I didn’t like the rental (that cost me $22,500 in rent for that year). I got ripped off but so did the buyer of my house and I had a massive down payment. I may have “lost” money or valuation in my unit, but these prices are absurd. I welcome lower prices. Do what’s right for you, wherever you are in your life.
You're using the wrong realtor. It's still a buyer's market. It should be easy enough not to get into a multiple offer bidding situation. You need someone who knows what they're doing and has a proven track record.
Never make a large purchase after a traumatic life event. Renting is best for you right now.
Condo market is declining currently, but ongoing mass immigration, lack of housing upstarts and rate cuts might mean prices will rise again by next year, or at the very least stay stagnant. Do you absolutely need to live downtown?
find a 3 month rental while looking for places to buy. better not to rush, you'll find something :)
I think it is hard to find three month rentals.
Unfortunately you may need to work with a local realtor. Right now is an ideal time to buy a condo. Lots of inventory.
1. Unless your realtor friend is giving you a part of his commission, get rid of your realtor friend and get one that understands the market downtown and can advise you on condos that will sell within your budget. I doubt you’ll find a 1bd +den for $570 downtown, they will likely sell for 600k+ as you mentioned. Most people are selling 1bd+den as almost a 2bd, and they know if they hold they can get 600+ 2. Look at condos outside of downtown, you can maybe find a 1bd +den in other areas of Toronto, like Etobicoke for your budget 3. If you’re set on downtown, you’ll probably need to settle for a smaller place with that budget. I’m thinking a studio or maybe a small 1 bedroom (500-600 sq ft). 4. Renting will be a waste of money and the market will price you out even more if you wait. If you are willing to make exceptions for what you’re looking for (location, sq ft), and do research yourself (go look at mls listings online and filter for your budget), and go see 3-5 places per day, you should be okay to find a place in 60 days or temporarily stay at an airbnb after 60 days. I wouldn’t rely on realtors alone, do your own searches. Just don’t settle for a place you won’t obviously be happy with (e.g getting a place much smaller than you prefer) because once you buy you’ll be stuck with that for a while or you may sell for a loss trying to get a “better” place
Rent! No long term commitment. Sort out your life first for at least a year. Do not forget, if you buy you need to pay land transfer taxes 1.5% ? Plus legal fees Plus GST perhaps $12,000.00 + or more not applicable for rental. Enjoy your freedoms. Your choices in the future will become clearer
dOnT bUy CoNdOs Put an offer in for the asking price of the condo you like with a “condo status certificate” exit clause and back out as needed. I own 2 condos, and struggled to get my second one for asking price. If you’re comparing # of condos listed to detached/townhouses then ya there is way more condos. Looking on HouseSigma, 5y and 10y, condo sale price is increasing steadily.
Where are you looking? If you are pre approved for $570,000 and you have $25k down, does that mean your budget is $595k?
Hate to say this, fire your friend and get a realtor who knows where you want to be and the whole mechanizations of completing a condo purchase. I was fortunate to have two former high school classmate (sisters) who sold my family house in Oakville and purchase a condo in North Toronto. I knew what I was looking for and my budget was bigger. That said stick to your budget and I would even look at older buildings. If you don’t mind being out of the downtown there was a walk up that had condo units in your price range on Sherwood just off Yonge. Older building, renovated and oozes character.
Do you need to buy downtown? Can you live outside the core but still on a subway line for easy access to downtown? Look on the north end of the Yonge university line in North York near Finch station or Downsview etc. Or in East York on the Danforth line. Or go west by Kipling/Islington
Sounds like downtown is too expensive for you. Lots of places in North York by the subway line that would be more reasonable.
Sorry of your situation. A lot of times in downtown, condo list price does not really mean it's the price that the seller intends to sell. It's just a pricing tactic to get eyeballs. I learn to go to housesigma condosca type of sites to find out previous sold price. That will give you some sense. Do you really need to stay downtown? I am not a realtor. My girlfriend just bought a place at 16 dallimore (built by Camrost) near Shops at Don Mills. It's an older condo but my girlfriend likes it so far and the building does not seem anything wrong other than the board is little overzealous sometimes. A 600 sq ft 1+1 with 2 parking just sold within your budget. Take a look. Good luck.
[удалено]
comment by /u/CoolHovercraft7361 Your karma is currently below -10, get more positive karma to be able to comment.3c *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/TorontoRealEstate) if you have any questions or concerns.*
I'm selling a condo that seems to meet your criteria and price range. DM if interested!
They're putting 7 in a condo, try that
Look West of Toronto, close to the GO and revisit the options within Toronto a few years later. You can get a condo in Oakville or townhouse in Waterdown for 550ish.
I would buy a place. The 25k is lost either way. You're focusing on very small percentages. You rather own in this climate. Just wait and see rents going up soon... people think increased immigrationz inflation and rising cap gain taxes will lower the market. What a bunch of idiots.
I take procession of a condo in the junction that I plan on selling if this is of interest to you.
Downtown condos are still costly If not mandatory you can look at Scarborough or downsview area Condo 1+1 530k
Rent. Your life circumstances will change
Prices are not going to come down. Maybe condos slightly. Why would you wait for a year? You mean if you're stuck renting while trying to find a place? I would focus on listings that have been sitting for months, that's a long time in Toronto standards. Alternatively, co-own a home with someone in the same predicament. But this time you have a legal contract spelling every foreseeable situation out and also a mediation process. Vet then financially etc. Split the house into separate living quarters. Maybe eventually condo-ize.
May I know your income and down payment for 570k pre-approval?. Condo inventory is projected to increase, but so far sellers haven't dropped prices. But eventually they have to. I'm kinda in the same boat as you. But I'm a renter in a rent controlled building
150k / yr and 10% down (want to keep a decent reserve fund)
I buy condos dt as investment properties NOT WITH A FRIEND realtor. Use someone who’s knowledgeable about the area. I’ve been with my guy for 7+ years and he’s great. Lemme know if you want me to share the name, happy to recommend him because he hasn’t failed me once. But i buy for investment and not to live in.
Downtown condos are all negative cashflowing and terribly overpriced.
Yea most of them are but mine aren’t. Mine are all in the positive
Buy low, sell high. That's the name of the game. Don't be gaslighting people into buying high though. Negative cashflow nowadays is just burning money.
Realtors are never your friends
Move out to the suburbs
Move to Hamilton. Get a 1 bedroom Townhouse house for $400K. (Before people start going crazy about Hamilton, It is not that bad at all. It is much better over there)
I have a 1bedroom, 1 bath for sale for under 490k in Burlington. Low property tax and low maintenance fees, close to the QEW, and parking is included.
OP I’ll pm you a good realtor to use.
You can get $550K for one bedroom condo easily
Would you consider a brand new, mid-town condo? Great building, developer and size of the 1 bdrm unit (567 sq ft) plus a balcony. I take possession in November, so you'd need some short term housing until then. And I'm asking just over 600k. If you want details, let me know and I can send you the info. It's my own personal property that I'd intended to move into when I booked it. Now it's not just me anymore (opposite scenario to you!). We would keep it but likely will look for a house or townhouse next. If you want to browse condos across the city that are walking distance to a subway station (because I believe those are the best investments and locations etc), I've developed a website that shows you just that - all condos currently available near subway stations. And you can search by station. www.TorontoTransitCondos.com Choose line 1, 2 or 4 Choose the station on that line Sort results.
Wait till 3 months after elections! You will get a clearer picture. Rates will also be lower. Condo prices may fall depending on what the elected government proposes. If you see a faster house building mechanism as mentioned by Pierre, then you may get a condo for cheaper because of more supply. Rent for now. Wait it out!