I find it ironic that in a city where so many residents long for affordable real estate, people are more likely to ask, “What’s the most expensive house in Toronto?” Rather than “Where can I find the cheapest condo?”
I guess at our core, we’re all just a bunch of dreamers.
But rather than look at photos of a $17,000,000 house with eleven bathrooms, let’s look today at some of the cheapest condos in the city of Toronto, and find out why they’re so cheap, and if there’s a catch…
If you’re reading this blog, then it’s safe to say you have a general interest in real estate.
This is probably not your first time reading a real estate blog, or trolling the Internet to look at houses and condos for sale.
So what would you say is the average price per square foot of a Toronto condo in 2014?
I know, I know – you want to know where we’re looking, as well as how old the building is, whether it has a parking space, how large it is, etc.
But just throw out a number – what would you say is the average in Toronto? Not downtown Toronto, but the GTA?
Are we around $450/sqft? Is that reasonable?
The average in the downtown core has probably pushed well past $600/sqft, on average.
So with cheaper condos available north, east, and west of the core, would it even out around $450/sqft?
So what is the lowest you could conceivably figure a condo would cost?
Picture the worst place in the city of Toronto, and tell me what the lowest price per square foot could be?
Less than $200/sqft?
Less than $100/sqft? Is that possible? Even with luxury downtown condos selling for upwards of $2,000/sqft?
Nope. That would be high.
How about $48/sqft?
Is there a catch? There simply has to be…
I went on MLS today and looking for condos in the Toronto area, the only search parameter I put in was “1-bedroom” to weed out the parking spaces for sale, as well as all the leases that agents have mistakenly put under sales (there are dozens, FYI…), and I found 30 condos priced at $89,000 or less.
The price per square foot of some of these units is lower than even I ever could have imagined.
Here are the five cheapest condos in Toronto, currently available for sale:
1) 4645 Jane Street – $38,500
Everybody hears “Jane” and immediately waits to see if “Finch” comes next.
Are we that predictable?
This is Jane & Steeles, but no, it’s not a great area either.
There is a 600 square foot, 1-bed, 1-bath unit available for $38,500.
There is an 800 square foot, 2-bed, 1-bath unit available for $55,000. And the taxes are only $900 per year!
Is there a catch? There has to be. From the MLS listing in the broker’s notes: Please Ensure That Your Clients Have Private Financing As Major Banks Financing May Be Negative.
So I’m assuming that lenders won’t touch this building, although if those units are renting for $850/month like it says in the MLS listing, then the yield as an investor could be quite attractive!
2) 40 Panorama Court
This building is located at Kipling & Finch, and it’s actually a stone’s throw from three different parks, and it backs onto the Humber River.
The location isn’t bad at all.
And the price?
There’s a 1,200+ square foot, 3-bed, 2-bath unit listed for $59,900!
That’s less than $49 per square foot.
Is there a catch? Yes. Oh God yes. Try Googling “40 Panorama Court,” and you’ll probably find THIS article in the Toronto Star from 2011.
Don’t quote me on this because I don’t have the Status Certificate, but it looks like there is a special assessment of $202.30 per month, every month, until 2030, and that $202.30 per month is expected to increase to $352.30 per month as of 2015.
If that’s true (I’m taking this from an MLS listing), then this is perhaps the worst condo in the city of Toronto.
3) 320 Dixon Road
According to MPAC, this building was constructed in 1971.
I was negative nine-years-old…
There’s currently a 2-bed, 1-bath unit of just over 900 square feet available for $69,000.
Is there a catch? From what I can tell, there doesn’t seem to be one. Other than the fact that this is a 43-year-old building, on Dixon Road.
But the maintenance fees are only $471/month, plus heat and hydro, but it’s not electric heat (very expensive!) like many buildings of this age. I can’t find any information about a special assessment, so unless I’m missing something here, we’ve got a condo priced at $75 per square foot with property taxes of only $289.21 per year!
4) 10 Eddystone Avenue
Well, the photo sucks, but at least there is a photo on MLS!
Here we have a 3-bedroom, 2-bathroom unit of over 1,000 square feet, priced at $69,900.
It’s up near Oakdale Golf & Country Club…..
……which is a stone’s throw from Jane & Finch.
I certainly am not trying to pick on Jane & Finch, but these five are the lowest-priced properties on MLS, so we’re simply going where MLS takes us!
Is there a catch? I’d certainly say so. The MLS listing reads as follows:
Property Sold “As Is”, All Offers Require Schedule “A”. Seller Has No Knowledge Of Uffi Warranty. All Measurements, And Lot Size Are Approx. Only. Buyer To Verify Realty Taxes. Min $2000 Deposit Required With All Accepted Offers.The Buyer Is Assuming Tenancy, The Following Clause Must Be Included In The Offer: The Buyer Acknowledges That The Property Is Currently Tenanted And The Buyer Is Assuming The Tenancy, If Any, On Closing.No Representations Are Provided By The Seller Regarding The Tenancy In Accordance With Schedule A.The Vendor Makes No Representation Or Warranty Regarding Any Info Which May Have Been Input Into Data Entry Form.The Vendor Will Not Be Responsible For Any Error In Measurement, Description Or Cost To Maintain Property.Please Contact Listing Agent For Further Information.The Buyer Acknowledges That The Property Is Not Retrofitted.The Buyer Acknowledges That The Property Is Currently Tenanted A Copy Of The Lease If Any Is Not Available For Production.
So basically this unit is being sold with a “mystery” tenant, who you can’t meet or interview, nor can you get a copy of the lease, if there is one.
It sounds like a real stand-up guy or gal lives in the unit!
I read through the “Schedule A” and it reads like a book called “101 Indemnification Clauses.”
I’d probably steer clear of this one…
5) 4060 Lawrence Avenue
Here’s the best price per square foot in the city of Toronto, hands down!
$48 per square!
There’s a 3-bedroom, 2-bathroom unit of 1,645 square feet available for $79,000, and guess what? It’s sold conditionally!
There’s definitely a market for these units, I’m telling you!
Is there a catch? Well, if you can get past the fact that this condo is steps from “Galloway Road,” then I suppose the question depends on how you feel about the, um, “decor” of the condo as shown in these photos:
I thought I really liked flowers, until I saw this…
I have the same pink guitar in my condo…
Despite the three photos above, this photo really creeps me out, since it’s an empty room, with some indistinguishable item in the middle of the floor. Given all the crap shown in the photos above, whatever this is in the photo has to be something really, really weird…
Not everybody has to live at “La Snobb Boutique” in Yorkville, and not everybody can afford to either!
These bottom-barrel condos might lead you to believe that there are units available, oh, say around $200,000, in more desirable areas than Lawrence & Galloway, but that can provide space for a growing family.
As for the properties above, you have to believe that if it’s too good to be true, it likely is, and four of the five properties listed have either financial problems, tenancy problems, or both…