I don’t think I have enough space to write about all of the condos going up in Toronto and the GTA. It seems as though there is a new crane up on every corner. Not only are there new sites being developed, but there are old buildings which developers are using to incorporate a condo into. I get asked all the time whether or not I believe a condo right now is a good investment. Before I answer that question here are a few things to consider:
1. Inventory: How many other people are thinking about investing in the same condo? This is a two fold point, what about how many people are investing in other condos going up in the same neighbourhood.
2. Condo Fees: Most of the new condos are starting around the $400 mark for fees. How much will they go up, and will potential buyers in the future be will to pay $500-$600 monthly to live in this condo when it goes up.
3. Location: With so many going up, what is special about the location of the condo you are considering investing in? Is it just another condo, is it in a great retail location?
4. Amenities: What are the amenities and are they up to par with the other condos in the area?
5. This one goes together with #3. What type of Condo mix is in the building. Is there retail, commercial and anything else special about this building. In many of the newest Condos in Downtown Toronto, there is a good mix of all of those plus some sort of entertainment, a theatre, club, restaurant.
Taking into account all of these above factors, when people ask me what do I think of investing in a condo, I always say it depends on which one. If it is one that is just another condo, I say no, If its one with something special or a great location, I say yes.