Article provided by: Turnkey Real Estate Investments
When it comes to real estate investment, it’s challenging to choose the right development to place your investments. In Toronto, this has become increasingly difficult with the boom in preconstruction developments, making a decision harder. Often these developments come in a number of tiers with price points ranging from very affordable to eye-wateringly high, and these complexities can lead to confusion. The simplest way to determine if a project is right for your investment is to look at the type of home being developed. There are three main categories in development: Condominiums, apartments, and townhouses. The first two will be discussed separately. In a condo development, you are investing your money into a building with properties for sale. In exchange for your investment, you will be given a certain amount of units that you can purchase in any one of the buildings being developed. In the case of a typical condo development, the units are priced at a range of anywhere from a few hundred thousand dollars, all the way up to several million dollars. The price point has a lot to do with the size of the property, what’s being developed, the floor plan, the amenities, the size of the terraces, the amenities, the location, and the type of building. While this sounds complicated, don’t worry. I have prepared an easy-to-understand infographic that breaks down the three major categories of condo developments. Condo Building Types: Condominiums *Price range given represents the maximum one-bedroom price point for each condo. A penthouse on an existing development can be much higher. Type 1: Condo Complexes A condo complex is a development where all of the buildings will be built around one central building. Usually, this building is used to house condo units. In addition, usually the entire complex will contain a common building that houses the gym, the pool, the parking lot, and other common areas. An example of a condo complex is Metropolis Condos, a development by Brad Lamb Development, where the units range from approximately $130,000. Type 2: Condominiums in Urban Developments In a low-rise, urban development, such as the Bloor West Village, the units are often divided into small, private suites, as opposed to larger units where it may be difficult for one tenant to have privacy. An example of this development is on Prince of Wales. Type 3: Condominiums in Suburban Developments In a suburban development, such as the Etobicoke Lakeshore or Long Branch, the unit layouts are often larger, with a larger choice of layouts. In addition, there are no dedicated condo buildings. Instead, there are usually several houses attached to one another that have been divided into individual units. An example of a suburban development is Burloak in Etobicoke.