GOOD
CONDO INVESTMENT OPPORTUNITY ON THE HORIZON “AURA AT COLLEGE PARK”
Charles L. Hanes,
March 21, 2007
For those of you who don’t frequent this web site I’ll give a Reader’s
Digest overview of investing in a Toronto condo market and then I‘ll show you the
best condo investment in the city! That‘s right, the best in the city and I‘ll
tell you why and how you can get in on the ground floor.
In a city with over 250 active condo developments being sold it is not rocket science to
suggest that there is a full range of developer behind these developments. The game is
quite simple. Developers hire top gun real estate agents to man the sales sites and hire
the best ad agencies to put together the best presentation material possible, bring in the
best designers to throw a million dollars or so at putting together a spell-binding model
suite (even if most of the appointments are “upgrades”) and then turn to the
media to draw in the prospects (that would be you).
Most buyers are confused into thinking that they can do their own research (such folly) so
they turn to the local and national newspapers. Now these newspapers all are profit driven
and they sell full page ads to the developers from $35,000 to $50,000 per day ads.
Accompanying these ads are “editorial” pages where the newspaper allegedly
documents unbiased opinions (at least this is the perspective held by the reader) on the
merits of the developments (see if you can find editorial on any development other than
those that advertise in that paper). I’m sure that you can see the folly behind
actually thinking that if these papers did know something bad, that they would NOT publish
it (wouldn’t the developer get mad if they did and stop buying those expensive ads?).
The next thing that these “do it yourself” buyers do is turn to the FREE
magazines that adorn most street corners. When you realize that these magazines do NOT
employ writers at all, there is room for suspicion (if you are using it as research on
such a major investment) and that all of the editorial-appearing content found there is
actually written by the developer’s creative department specifically to look like
third party reporting, I’m sure you can see how dangerous doing your own research can
be.
Add to that the fact the developers do NOT put their company names on developments so
finding meaningful information becomes mute anyway! The truth is that if you are waiting
for ads, you are waiting too long in the condo investment game. Presale condos are sold in
consistent ways across the city and that involves developers reaching out to high volume
Realtors (like me) and inviting us in to pre-buy in the very early stages (months ahead of
public announcements of “Grand Openings”). At good developments I personally am
usually good for about twenty five clients who, obviously, get the best selection of
suites and who enjoy the best possible prices.
A couple weeks to a month later, the developers invite all of the Toronto Real Estate
Board (“TREB”) members (22,000+) to bring their clients in and pre-by suites
(the prices increase at this point). These two Realtor Events (they have formal parties
for us with finger food and refreshments and frequently offer one day incentives to my
client like FREE 42” Plasma televisions. The second party does not get many of the
first event incentives (also usually include preferred deposits of 10% - 15% instead of
the 20% usually required, and authority for my investors to sell their units at
Occupancy).
A few weeks later, after additional price increases, the Public is invited into a
“Grand Opening”. Have you ever attended one of these Grand Opening Events and
noticed how many units were already SOLD? The cat’s out of the bag! So, if you are
looking to enter the Toronto condo market as an investor, you had better understand this
simple structure within the business to sell new developments. If you buy in at Realtor
Event #2 you are buying a higher prices than my clients and if you are coming in as a
consumer at the Grand Opening then you are paying that price twice! The simple thing to do
is Register with me.
That said, and realizing that, of the 250 developments being sold in the city only a very
narrow threshold would qualify as good! What’s that you say!? You heard me, only
about 20% of what’s out there would I (with almost three decades of first hand condo
experience in this city) say qualify as good and the basis for this statement cannot be
found in books, newspapers, late night television shows (for God sakes stay away from
these), ad rag magazines, flyers, or any other of the plethora of ad rags used.
The rules are simple. Have your own agent. If you are looking on the Internet, in
magazines, newspapers, or wherever you see real estate advertising YOU MUST KNOW that the
Realtor running those ads (all Realtors running those ads) HOLD A LEGAL OBLIGATION TO
PROTECT ONLY THE BEST INTERESTS OF THEIR CLIENT (the SELLER)!!!!! |
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 Would you use the other
party’s lawyer to defend you if they sued you? Know that the Seller’s agent
cannot offer any advise to you (a buyer) that would ultimately jeopardize the sales. The
must be honest but they do NOT have to, nor are they allowed to, offer beneficial
information to the purchaser (their “customer” under law.
So, bottom line, if you are investing or looking to invest in a Toronto condo and you can
see the building, you are too late from an investment perspective and if you are invited
to attend a Grand Opening, you are too late from an investment perspective and if you are
invited by a Realtor that does less than 100 transactions personally a year, then you are
probably too late!
The best up and coming new condo site is without a doubt Aura at College Park, the
crowning off of this major area developing focus along the Bay Street Corridor. I have
always said, and said many times in articles here at simplycondos.com the old adage about
the “Three most important things in real estate are location, location,
location” simply do not apply when it comes to condos! A great location and a poor
developers are two of the integral ingredients in a disaster cake! With most developers
falling into this category in the city you can see how the odds are stacked against you.
At Aura, you are dealing with Canderel Stoneridge, the upscale developer of such quality
sites at College Park I and College Park II, along with the luxury Townhouses on the Park
at College Park, Waterford in Humber Bay Shores, Newport Beach on the lake, the very
successful DNA I and DNA II, and the Yacht Club in Whitby. I’m very comfortable
endorsing this developer as I’ve personally represented a number of buyers in most of
their developments and they have consistently delivered solid quality and satisfied
buyers. As a Buyer’s Agent these are the key things we look for. I do NOT work for
the developer, nor do I allow developers to advertise on my web site so you can trust that
what you see here is coming from me and I’m not paid to “fluff anyone’s
duff” (if you know what I mean).
In spite of a bunch of rather unethical Realtors falsely publishing on the Internet that
they have advanced information on Aura, the information is simply not available. Having
sold the majority of the townhouses on the park at College Park for them, you can rest
assured that if you want first access to floor plans and prices you simply have to
Register here with me and specify that you are interested in investing in or living in
Aura and I’ll make sure you are right up front as my Special Guest but Register soon
as I must get you on my Private Guest List.
You can bet that Aura will bring excellent amenities and finishes. I was really impressed
with Canderal’s sensitivity to the wants and needs of the townhouse buyers prior to
even designing these stately 2,200 square foot estate homes in the heart of the city.
The College and Bay area has proven a hotbed for residential condos of late. Bay street,
running from Lake Ontario on it’s south end to Davenport (just north of Yorkville)
was designated as “The Bay Street Corridor” a way back in the early 1980’s
when I was selling the Queen’s Quay Residences as it was always going to be
Toronto’s “Park Avenue” (a la Manhattan’s Park Avenue). Today, I see a
lot of old plans for condos coming back to life.
Within a one block radius of College and Bay we have the two 50+ storey towers of College Park with twelve
executive Townhouses and now Aura coming on the south east corner of the park rounding off
the entire parcel of land bordered with Bay Street on the west, Yonge on the east, Gerrard
on the south and College on the north.
Immediately north along Bay Street are three 50+ towers of Murano and at Yonge and College you
will find two 50+ storey towers of The Met I and Met II along with it’s stack
townhouses. Immediately across the street from College Park I is Lumiere, a more middle market
condo project The commercial component of College Park (shopping and office tower) have
been nicely modernized and the majority of the commercial space has rented bringing this
once a little ignored shopping area back to it’s glory days with 24 hour grocery
stores, fast food and upscale shops and coffee shops.
So don’t get caught up with Realtors misleading you by trying to tell you they have
information today. When the information becomes available I will be the first to get it. I
respect the developer’s right to control the release of their product and I have
their word that my clients will be right up front when units come up for sale. As one of
the most reputable builders in the city they would not give me this assurance unless they
meant it so if you are considering a condo investment or are looking to live in the
College and Bay Street area be sure to go about it the right way. Register with me here
and now (emphasizing Aura in the comments area) and sit back and let it all happen. You
will be the first to know what’s really happening and the first in line when it comes
to buying. I look forward to hearing from you.
Until then
I’m Charles Hanes |
