The Ultimate Guide to Buying a Condo in Toronto
If you are new to buying a Condo in Toronto, let this be a guide for you in terms of understanding some of the 'key terms' and 'types of condos' there are in Toronto before you begin your journey.
Before I get started here are the 5 TOPICS I will cover in this Blog Post:
The 4 Things you Need to Know BEFORE Buying a Condo in Toronto
The Different 'TYPES' of Condos in Toronto
The Different ‘STYLES’ of Condos in Toronto
Who are Toronto Condos built for?
Why Condos in Toronto are not Sold for the same price per Square Foot?
Let's get started!
4 Things You Need to Know
BEFORE Buying a Condo in Toronto
You need to determine what lifestyle you want. By doing this you need to know what each condo in Toronto has to offer in order for you to be interested in them - it’s like dating, you don't know what your type is unless you get to know them first! We are very lucky right now in Toronto, because developers have created some of the most architecturally beautiful buildings that offer a variety of features but most of the time you can't tell them apart unless you get to know them first! Don't be fooled by prices!
Get to know 'What type of BUYER' you are. Not every condo in Toronto is built the same and therefore not built for the same buyer. Some are built for specific buyers, such as only investors who want to rent out their property and some are built for end-users, who want to actually live in their condo.
Read below under ‘Types of Condo Buyers’.
There are many ‘Types and Styles of Condos’ in Toronto for you to choose from. So get to know what type and style you are looking for.
Read below for ‘Types of Condos in Toronto’.
Determine what Services and Amenities you require as part of your lifestyle. Not every condo in Toronto has the same features and finishes or convenience. Sometimes people will look at a condo price and then look at the monthly maintenance fees but not look into what those maintenance fees are covering or why that selling price is higher or lower than other condos nearby. For example, there are some Luxury Condos in Toronto that have special features and services included exclusive to their residences. There are also older buildings in Toronto that have utilities included in their monthly maintenance fees and therefore be a bit higher than other condos in Toronto. It's important to see what type of amenities and services you may be interested in.
Maintenance fees not only cover a gym, but other services that truly do benefit a lot of condo owners.
4 Different 'TYPES' of Condos in Toronto
There are 4 main 'TYPES' of Condos in Toronto:
Condo Townhomes -
These can be either Stacked Townhomes or Traditional Townhomes, either or, they are developed as a Condominium and therefore will have maintenance fees and a property manager. The maintenance fees are a lot lower than traditional condo buildings.
Boutique Condos -
Boutique condos do not have many floors- typically under 10 Stories. However, to be considered a true Boutique Condo this will depend on how many suites are available in the building. Ideally any number under 150, I would consider a boutique condo here in Toronto. Boutique condos will also vary in terms of security being offered in the building. There may be a 12 hour concierge versus a 24hour concierge. Or there may not be any coverage offered at all if there are fewer than 100 residential suites in the building.
Mid-Rise Condos -
A Mid-Rise Condo is anywhere between 10 and under 20 Stories high - The number of suites can vary, this will depend the plot of land the development sits on. Mid-Rise Condos are sometimes architecturally designed in a U-Shape configuration. a Mid-Rise Condo in Toronto can consist of having anywhere from 150 to over 500 residential suites.
High-Rise Condo -
This is your typical ‘SkyScraper Tower’. Built with over 20 Stories tall. High-Rise Condos are not all built the same. There are some high-rise Luxury Developments in Toronto that have less than 100 residential suites. On average in the City of Toronto assume there are between 10-15 residential suites per floor - You’re looking at about 350 to even 600 residential suites in one building for a typical Condo Development in Toronto.
Now reading this information so far - Are there things you would now consider that you didn't think to consider before? Such as, do you want to live in a building that has 500 people or does size now matter to you?
These ‘Condo TYPES’ in Toronto can be built individually or in a combination of ways such as:
A Stand-Alone building - One Single Residential Tower
Part of a Master Planned Community - A Combination or several Residential, Commercial and Retail Shops in a larger scaled development.
or even as a Resort Lifestyle Community
The Different ‘STYLES’ of Condos in Toronto
Now that we know the different ‘TYPES of Condos’ there are in Toronto, let's take a look at the various STYLES there are for each type of condo in Toronto.
Did you honestly think a condo was just another glass box in the sky?…. Nope! Far from that!
Now remember when I said: "There are 4 different TYPES of Condos in Toronto?" which were:
Condo Townhome
Boutique Condos
Mid- Rise Condos
High- Rise Condos
Each 'TYPE' of Condo in Toronto can be developed into 9 of these 'STYLES':
Hard Lofts - Hard Loft were originally Manufacture or Factory Heritage buildings here in Toronto, where builders will convert the intention of use to a Residential dwelling, while keeping the facade component and most of the building intact.
2. Soft Lofts - Soft Loft in Toronto are built by keeping the traditional look of a "Hard Loft' in Toronto but being completely built in New Construction. There may be a revitalized component that will be considered 'Hard Loft' that remains apart of the building. Soft Lofts in Toronto will feature things like exposed ceiling and ductwork or exposed columns to mimic a Hard Loft Style.
3. Costco Condos - This is a term that I personally came up with to help people differentiate between 'Quality Condos' and 'Costco Condos'. 'Costco Condos' are your traditional condo buildings in Toronto that are built specifically for Investors - They feature: minimum architectural style, with the same floor plate and floor plans throughout the entire building.
4. Quality Condos - These are the condos that are built by reputable developers in
Toronto. They cater to more End-Users and End-investors. The features and finishes here will be way above the standard options compared to a 'costco condo' in Toronto. The architecture and design of quality condos are curated by many award-winning toronto based firms. Quality condos in Toronto are architecturally appealing and they offer a variety of floor plans and suite size options. The amenities in these developments are a lot more convenient to those living in this style of condo. The maintenance fees will vary depending on what amenities and services are being offered. But there are so many great options of great 'Quality Condos' in Toronto. This is something you should really pay attention to especially if you want to live here long term.
5. Traditional Townhome Condo -
This is a great 'Condo Alternative' for Condo living - traditional townhomes will be 3-4 storeys tall per home, they will of course be attached in the typical townhome manner, however Condo Townhome Communities will have Condo Fees and a Condo Board. The monthly maintenance fees of a Townhome Condo in Toronto is a lot less than Condo Buildings. They will have very minimal amenities but each Townhome Community in Toronto will vary in terms of services they offer to their residents.
6. Stacked Condo -
These are more of the Modern Condo Townhome version- essentially you will take a Traditional 4-Storey townhome and divide each floor into a flat and that is considered a Stacked Condo. I would describe this as being similar to a Multiplex Apartment. Where multiplex apartment were once a detached or semi-detached estate in Toronto but at some point was converted to separate units per floor. Stacked Townhomes are purposely built as new development condos in Toronto Stacked Condos in Toronto they will have a Condo board, monthly maintenance fees and a property management company.
7. Luxury Condos - Luxury Condos are Condos that are built with a lot more
features and finishes that are well above Standard. Luxury Condos in Toronto are a lot more appealing in terms of its Architecture and Design component and will offer a variety of Suite Collections, Penthouse Collections, Custom millwork and layout options and larger suite sizes. Luxury Condos in Toronto will also have higher maintenance fees because they offer a lot more services to their residences such as valet parking, dry-cleaning services, housekeeping etc. There are fewer suites in Luxury Condos in Toronto as they are very exclusive to a certain buyer and a certain lifestyle. This is upscale living at its finest.
8. Super Luxury Condos - 'Super Luxury Condos' in Toronto is another term I
came up with again to help differentiate between the different styles of Condos. We are seeing more and more 'Super Luxury Condos' here in Toronto. These Condos have a lot more flare to the architecture and design of the overall building. The developers will bring in renowned architects and designers from around the world. There will be some sort of intricate architectural component that will be part of the building and the interiors will feature more brand name kitchens, millwork and fixtures than standard fabricators. The amenities and services in 'Super Luxury Condos' are quite truly unmatched - these are services and amenities off all kinds available at your fingertips.
9. Hotel Residences - These Condos in Toronto are built as Hotels to the
hospitality and service industry, but will also have a residential floor in a seperate part of the building sold as a condominium to buyers. The advantage of a Hotel Residence is the services will also be extended to Residential owners. The maintenance fees will be lower than a Luxury Condo but a little higher than the average condo as most of the services will not be included in the monthly maintenance fees however they have the option of the service for an additional fee.
WHO ARE TORONTO CONDOS BUILT FOR?
Remember when I said “Not every condo is built for the same Buyer?”…
When condos are being proposed in the City of Toronto, Developers will focus on who the key demographic Buyers will be for that particular location and development. This has everything to do with what ‘TYPE and STYLE of Condo’ they want to build and the ‘Features and Finishes they will want to include in that particular development.
There are 3 Types of Buyers Developers build for.
End Users - End users are Buyers who want to actually live in their condo property. These are ‘Owner Occupied’. This condo property will be the owners Primary Residence.
Investors - Investors are Buyers who are looking to rent their property out to tenants. Investor properties are known as ‘Income Properties’.
End-Investors - this is both 'End-User' and 'Investor'- these are Owners who at some point want to keep their property for themselves to live in at some point in their life, or pass it down to their children in the future and they will also rent it out to Tenants when they do not want to occupy the property for themselves.
Once you start focusing on all the features, finishes, amenities, and the type and style of the building—especially now in Toronto, where developers are finally delivering incredible residential condo architecture and design—it becomes really difficult to make a choice.
WHY CONDOS ARE NOT SOLD FOR THE SAME PRICE PER SQUARE FOOT IN TORONTO?
So now that you have learned some basic Condo Terms as a result this is why condos cannot and will not ever sell for the same price per square foot in Toronto.
They are not all built in the same way, they are not built for the same buyers, every condo delivers a different options in terms of 'type' and 'style', every building will vary depending on the features and finishes and services being offered. Each building is unique in its own way which truels does make it special when you are looking for a condo in Toronto.
Now that you know my term “Costco Condo”, these condos sell at less price per square foot than the quality Condos that are built for End-Users that offer a lot more in those developments. A Luxury Condo in Toronto will sell higher than an Investor Condo in Toronto because obviously it will have a lot more features, finishes, services and amenities in the building.
Why is this important to know before buying a Condo in Toronto? Again, let's bring back the freehold property home buying mentality, not every freehold detached, semi-detached and townhome are worth the same price all around Toronto correct? There are some neighborhoods that are worth less than others. There are some neighborhoods that don't have a good reputation. If I was buying a freehold property, would this not be something to consider?
That answer is yes!
Ok, so the same rule applies to condos. Not every condo attracts the same type of people!
If you are an end user - and you are looking for a condo property to actually live in - would you not want to know if the majority of the suites are owner occupied versus tenants?
And aside from the fact that you are paying for a Suite to live in, do you know want to know what other special features and amenities that are available in the building an come with this condo property purchase?
The answer to these questions is YES. Always yes!
If you are an end-Investor - you want to know what features and finishes are available in the Condo development. This is important to the quality of tenants you will have occupying your home when you are not there and this will affect the overall value year over year in the Toronto Real Estate Market.
While other investors seek out ‘Costco-Condos’ as income properties, the true income properties with more profit are the End-User Condos.
'Quality Condos' versus 'Costco Condos' rent out above the average price per square foot!
There you have it. I hope you took away some valuable information before you begin your Condo buying process in Toronto.
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