The conflicting optics and misleading first impressions of condo buildings
The condo market moves in waves, each one seemingly bigger than the last. Condo ownership is looked at as an income-generating investment for some, and simply as an alternative to a house for many others. And why not?… There is little upkeep to be concerned about, and going away for a holiday is not fraught with the angst of being burglarized or having a roof leak after an ice storm. If you own parking spots, they are usually protected, so no need to worry about getting into a freezing car after sweeping the snow off it in winter, or stepping into a sun-baked oven that needs to be blasted with A/C before closing the door in the summer. Conveniences of useful amenities often exist and there may be social activities planned which create community.
I love this concept of a small apartment block in Buenos Aires, situated on a block with property sizes similar to some central Toronto neighborhoods. Privately funded, this project represents an intelligent and sophisticated modern addition to the neighborhood. Residents collaborated with an architect to create a venture for generating income or living in. The scale is ideal for a neighborhood where 3-storey houses with high rooftops blend harmoniously with the treetops, forming a ‘natural ceiling.’ Forward-thinking ideas like this could offer a solution to Toronto’s current affordability challenges and present an appealing financial opportunity for multiple stakeholders.
Condos are Not One-Size-Fits-All
So, are all condos alike? Not at all… they are just as varied as the multitudes of housing types and styles that the city offers, and there are countless variables to consider. During each wave of condo building, it seems that a new fashion is created, one that seems out of control in Toronto of the 2020s. Condorama: the land of tall, glitzy, super-cool one-upmanship. Well, that’s what the building exteriors and sophisticated-looking lobbies would have one believe, anyway.
What about all the older staid-seeming lower-rise condos with 8-foot ceilings and masonry exteriors…? Why should they even be considered? I, for one, am a huge proponent of these buildings. Many were designed by esteemed architectural firms that had high technical expertise and oversaw the construction of these buildings in the 70s through the 90s. They frequently boast gracious floor plans, views of nice neighbourhoods in the city, and some generous spaces around them. They were born into a city that had tighter zoning restrictions, and many were low-rise, which is a rarity today.
So what?
Those smart new lobbies in Toronto’s new 80-storey towers, designed by leading interior design firms give an amazing first impression. Many possess architecture that makes a mark in the neighbourhood, if not the skyline. My mother was always a woman who stuck to first impressions… but that wasn’t always a good thing (though she was usually always right about things, damn it). I have shown condo properties in a good 100 buildings, and have seen past the eye candy.
New buildings vs. old:
- Those stylish (trendy?) new lobbies lead to the elevators… sometimes only 2 or 3 serving 50-70 floors, with twenty-minute waits for elevators upon getting home from work, standing amongst a crowd who are simply renting their units for a short while, so you’ll never know them. If elevators are broken (often) one waits longer, or faces arduous climbs. In an older 8 – 20 storey building, the same number of elevators serve fewer floors, often with larger units inhabited by their long-term owners (so fewer per floor).
- Sparkling fitness facilities in new buildings are indisputably nice to have (until the fitness equipment breaks or is outdated), but depend on good maintenance and frequent cleanings. Older buildings often have renovated facilities to keep the owners from grumbling, though these facilities rarely get used, since they seldom take the place of a full-fledged gym with its lively pulse, socialization and possible convenience to one’s place of work.
- Higher ceilings and glassy views in the units in new buildings are impressive. So are the heating and cooling bills. That said, it’s worth it to have the extra daylight in many newer buildings, since the units are generally so much smaller; glass walls make these spaces appear larger. Until one brings in furniture. Oh, and when the curtain wall systems fail due to inferior glazing systems being brought in from abroad during the construction… an interesting (frightening) CBC News article discusses this fully.
- No work to do — just move in! It’s easy with new condos, but personalizing a space is much more satisfying in the end. This is often done in a larger, older condo for less than buying a comparable new one. And, if there’s a fire in your unit, or near it, the fire department will have equipment that can reach it. (OK, so the Toronto Fire Department has a Bronto Skylift that’ll reach 20 storeys for those of you that are higher up, if it’s not broken…) If you’re on the 55th floor, well, I hope your legs work well to go down all those emergency stairs to escape.
- The low condo fees of many newer buildings are attractive to buyers. Over the past few years, I’ve been watching these climb in newer buildings, as maintenance costs increase, as repairs are factored in through engineering reports commissioned by the condo boards, and these fees appear to be catching up to the amount per square foot of older buildings. I’ve seen some newer building condo fees up around $1.00/SF and some newer luxury buildings closer to $2.00 in 2023! Some of the older buildings, though, include most or all utilities in their fees! They also have 24-hour concierges, maintenance of parking for all units, and storage lockers included in those fees.
- The buy-in is understandably higher for a new unit in a new building — the land, construction costs and permit fees were all higher. However, over time, many of these buildings have not seen as high a price appreciation as some of the older buildings have, when looking at the percentage increase over the purchase price over a number of years. One reason is that these newer buildings have many (mostly) smaller units in them which keep prices lower, and, as they are more common, plus the amount of units being used as rentals in these properties, buyers are wisening to the importance and value of living amongst other fellow-owners. Owner-occupied buildings have stronger condo boards that take an interest in their own properties, maintaining a great place to call “home” and ensuring that they maintain their value in comparison to inflation. Older buildings’ boards embrace renovation and improvements to increase property value. I don’t see this as much in buildings full of 400-600 square-foot units, where Airbnb short-term rentals are sometimes still actually permitted (established buildings do not permit this kind of rental activity).
- All those great views from the 44th floor! Enjoy them until a 63-storey building is built less than 100 feet away, then delight in your intimate relationship with 200 new people whose homes you’ll be looking right into… The older buildings are set within their neighbourhoods and sometimes integrated amongst historical buildings and houses — St. Lawrence Market neighbourhood, Yorkville, the Annex, Summerhill, Forest Hill Village, Rosedale. They are close to transit, established amenities, and in areas where businesses thrive at street level. These older buildings are neighbourhoods with neighbourhoods, and possess incredible opportunities for luxurious living without breaking the bank. Over time, they may be very smart purchases, not only for one’s personal finances, but also for general happiness and sanity.
I have enjoyed working with many clients to help them evaluate the advantages of different types of housing, including condos. However, when we are exclusively looking at condominium buildings there are just as many comparisons to be made before deciding on what is the right place to plant your feet for a while. I have a database of floor plans to share of units in over 350 Toronto buildings — older, new, and under development. There are a few interesting buildings in the pipeline that will be exceptional and rare opportunities that I’d highly recommend.
Feel free to reach out directly by calling 416-824-1242 or emailing robert@lifeofluxury.ca today.
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