It’s not often that Toronto real estate can be considered cheap — well, relatively speaking — but the price of this downtown one-bedroom condo near King and Yonge that just hit the market is enticingly low.
Located on the seventh floor of the Cosmopolitan Hotel and Residences at 8 Colborne Street, this unit not only seems to have a great price — at least until competing offers start to drive it up — but it also has access to all of the building’s robust amenities including a spa, wine bar, restaurants, conference room, and 24-hour concierge.
As to be expected, the low list price was likely chosen to draw in more interested buyers.
“In today’s market, sellers and listings agents have been using the list low strategy to attract as many buyers to the unit,” Zoocasa agent Srun Leang told Daily Hive. “By doing so, buyers could potentially fall in love with the place and price tag which in turn stirs up a bidding war between other prospective buyers with the same mindset.
“It’s prudent to not put much emphasis on the list price and consult with your buying agent on the market value of any home you show interest in.
Two similar units in the building sold last year in the high $300,000’s, Leang said, but in more recent months, comparable units in the neighbourhood have been going for a minimum of $500,000.
“A unit like this is best suited for the first-time homebuyers looking to get into the market,” Leang said.
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There is one glaring financial factor that any buyer will have to take into account, though: the high monthly maintenance fees of $717.91.
“For a unit that is approximately 500 sq ft and with a monthly maintenance fee of $717.91, that puts the monthly maintenance fee sq ft ratio to $1.45 per sq ft,” Leang said. “For comparison, Toronto condo units monthly maintenance is generally in the range of $0.60 to $0.75 per sq ft.”
The higher maintenance fee per square foot, Leang says, hinders the appreciation value in both the short and long term.
Leang’s recommendation is that any buyer who is willing to pay such high monthly maintenance fees should just consider paying a bit more upfront for a more expensive unit that has lower fees since lenders factor in the monthly fees when checking your mortgage availability anyway.
But for someone who really wants to live right in the heart of downtown at King and Yonge while paying less upfront, this condo could be a great property.