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BRIAN PERSAUD
BabbleBee
reply 280 vote 17
 

Whats the deal with Midrise Condos as an investment?

Jen Keesmaat recently wrote a blog post:Mid-Rise Rising: 58 Approved Applications and Counting. http://ownyourcity.ca/2013/11/mid-rise-rising/

I'm just looking into the investment performance of these buildings. The theory brought up was that investors dont buy these buildings and its more of an end user thing.or they may me an untapped opportunity for people to buy into

on the flip side, it seems that smaller developers build them and may not have a long track record of success (ie stage east lofts)

anyone have any experience to share?

I\ve noticed that @Freed Developments' midrise buildings do have lots of tenants and have an investor following. what else have you been seeing
5
Ontario / New Developments
 
 
 
NARAM MANSOUR
NewBee
reply 1 vote 2
 
 
2 BEST REPLY
I agree with Roy. It's very difficult to compare investment returns between mid-rise and high-rise.

Mid-rise are typically on avenues that are not along the subway line and if they are, it's typically on the Bloor-Danforth vs University/Spadina/Yonge and as such don'texperience as much demand from investors.

Also, you tend to find a lot more end user interest in mid-rise projects. Given that mid-rise developers know this, they are less likely to use a similar strategy where they provide lower pricing to the initial purchasers and increase the pricing over time. I don't love this aspect about mid-rise. 

I do agree that location is the best way to judge a mid-rise is by the location. 

With respect to Developers. The key to determining whether its a builder that will care about the purchasers/brokers and customer care is to note if the developer has launched or is launching other projects other than his current development. A lot of mid-rise developers will launch and build one site because they've owned the land for decades and now can build it out and make a good buck. But the developers who are buying and selling other sites are actually in the business of development and will care about their long-term track record with the market.
 
 
 
ROY BHANDARI
Senior Buzzer
reply 512 vote 60
 
 
1
I think it's difficult to compare investment performance between mid-rise and high-rise for a number of reasons. I'm not going to hang my hat on one side of this but wanted to make a couple of observations:

-Likelihood of finding mid-rise is less in key investment corridors (Yonge/Bay) - not to say it doesn't happen, but typically they are building high rise in these locations

-Mid rise doesn't necessarily mean less suites. Larger footprints such as DNA3, Thompson Residences etc still have hundreds of suites and large density

-Mid rise projects with smaller number of units may not offer the same quality amenities that larger buildings do.

-As noted already, the developers who are doing the "smaller" projects are not typically the builders with the track records.

I think it's more important to compare locations as opposed to building types.  If unfair to compare the investment performance of a high rise on Yonge Street to a mid rise in King East and make conclusions based on that ....
 
 
ANDREW LAFLEUR
Buzzer
reply 119 vote 39
 
 
would love to see what data you can pull up @Brian if anything

PROS for midrise

-high percentage of end-users buying, so less competition when you go to rent or resell in the future
-high end-user population also makes for a better maintained and well-run building compared to 50-60 storey towers that are majority investor owned
-can be a good opportunity to get good quality condo at price that is lower than
-more liveable floor plans suited for end-users (less likely to be shoe-boxey)
-opportunity to buy into established neighbourhoods of toronto where freehold prices are through the roof (like bloor west village, roncesvalles, annex, leslieville, danforth, beaches, leaside, etc.)
-good for down sizers who aren't quite ready yet to downsize (rent it out for a few years then move in)


CONS for midrise

-usually located off the main hot spots of condo development where there are a plethora of resale buyers and renters always waiting (i.e. yonge street, king east/west, south core, bay street)
-usually you are buying from a less experienced or often brand new developer
-less amenities but still the same maintenance fees
 
 
ANDREW LAFLEUR
Buzzer
reply 119 vote 39
 
 
1
oh, and a hearty welcome to the forum to a great mid-rise developer in @Naram Mansour of @Carlyle Communities!!
 
 
JUMIE O.
Buzzer
reply 26 vote 6
 
 
Edge on Triangle Park is a mid-rise development , and based on location i believe it probably do just as well as other high rise developments in the area. What are your  thoughts?
 
 
 
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