What is the problem with 40 Homewood Ave?

Category: Condos

 

Hi David, 

What is the problem with 40 Homewood Ave?
I constantly see properties there selling for well below market values of the area.
I am sure there is an explanation.

Thank you,

Silviu


 

Hi Silviu,

 

There’s nothing really “wrong” with 40 Homewood Avenue, per se.

But you are correct – properties in this building do sell well below the average price-per-square-foot in the area.

Why?

A few reasons.

1) The building is old.

That might not be a good enough reason for some people, but simply put: old doesn’t sell well in the Toronto condo market.  New, does.

This is one of the oldest condos in the central core, having been registered as a condominium corporation in 1972.

2) The building is ugly.

Ugly and old go hand-in-hand.  We usually think what’s older, is uglier, than the sleek, new, shiny glass buildings we see today.

But from the exterior, there’s nothing special about this building.  It looks like an apartment.

And on the inside, it’s dated too.

3) The heat is electric.

Usually the concern with electric heat is the cost, but the cost is included at 40 Homewood.

Nevertheless, most people prefer forced air gas heating in condos, and radiant/electric/baseboard is very rare in condos.

This also means that there’s no ducts for air conditioning, and thus the A/C in the building is through window-units, which are once again, very reminiscent of an old apartment building.

4) The parking is rental.

This isn’t a problem in buildings like 25 The Esplanade, where units sell quickly, and for a pretty penny.

But perhaps in combination with everything else on this list, it doesn’t play well.

At the end of the day, it’s up to the buyer to decide where the value lays.

Personally, I see a ton of value in this building.  The buyer just has to decide if they want to pay more for something newer, with newer features.

Average PPSQFT at 40 Homewood Avenue is currently $609.  Up at “Verve” at 120 Homewood Avenue, the PPSQFT is $800.

6 Comments

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  1. Casey says:

    I’m a renter. Price is right as far as that goes, paying considerably less for the space than I would in a newer building, and honestly its really only the outside that’s ugly. Inside is all pretty nicely redone save for the floor hallways which look straight out of 1973.

    The only real issue I have is addressed in #3… Your thermostat controls the heating in your CEILING, not your floor. Whoever designed this brain-dead system should have been reminded that hot air is less dense than cool air and thus rises. I’d rather feel warm under my feet than on the top of my head, but that’s just me. Essentially the unit below you controls your heating which makes me feel bad for the poor soul above me because I like it ice cold when I sleep so my thermostat is perpetually at 0.

  2. Charles Marker says:

    #3 is a problem as a cost to the condo AND the fact that heating comes from the ceiling, so there are lots of issues between neighbours. Lack of central a/c is a problem; many are now installing “split-unit” air conditioners. Effective. Our (I’m a resident and owner since 1996) reserve fund is very robust and is paying the $3-$4 million cost for the new windows, nearly half installed now. May make a difference in hydro bill. Pool is salt water – the swimmers like that. Safe concrete: in 2005 a fire totalled one unit on 28th floor and spread NOWHERE. We have spacious and lovely grounds. And, as an “old” building, the individual rooms are much bigger than many in the new buildings today.

  3. Peter says:

    Some of the units when redone are quite nice howeve the neee for window ac units is a bit of a downer and the fact that no one has insuite laundry is a bit of a negative.

  4. Cam says:

    Just moved in, definitely an old building but AMAZING for the price (if you’re a renter). Brand new elevators recently installed. Windows are in the process of being replaced in every unit (the worst part of the building IMO). Lots of elderly tenants so very quiet atmosphere. Indoor gym is like a hotel gym but thats ok. Swimming pool looks good but haven’t jumped in yet. Would recommend for renters but depends on the unit, mine was recently renovated by the owners. Kitchen and living area is awesome.

  5. Condodweller says:

    I think these older buildings can be a great value but you have to do your homework on how it has been maintained and if they have a sufficient reserve fund to handle potential big ticket repairs. There is a potential for huge special assessments if the reserve fund is not big enough.

  6. JC says:

    When we were looking we only focused on older condos: they “seem” (to me) to be more solid; units tend to be large; people who live there are generally older and quiet, and often away for winter….

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