Getting There First

Do you ever notice that some of the best condos in many Toronto neighbourhoods are often the ones that got there first? What do I mean by that exactly? Well, take Liberty Village for example. Here was a place that 10 to 15 years ago was pretty much empty with the exception of some old warehouse buildings longing to be converted into condos. Then some developers had the idea to buy up available warehouses and transform them into condo lofts. And it's these condos, in an emerging neighbourhood, that often turn out the best.

Why, you ask? Well, for two reasons. First, the land that was purchased when there was very little infrastructure in place. That means, no grocery stores or pharmacies or hipster restaurant or espresso bar nearby. For a location like Liberty Village, putting the financing together may not have been easy for a developer, but the land had been much less expensive when there was a risk that no one would want to live there. So, the condo builder is able to spend money on other things - like a better design and nicer units. For buyers, since the builder is gambling on a new area, then initially it would have cost less to purchase. Still, even if you buy your "first to arrive" condo, once all the other condos have built up around it, you still win. The units may not be as inexpensive, but you will benefit from the better design that was put in place long before you arrived. Those condo builders who come later to the game usually have to spend more money to obtain the land, and they have to build higher (city permitting). Since they spend more on the purchase of the land, less money goes into the condo, and the design is not as fancy or the layouts are smaller to make more money off of more units.

Take the Toy Factory Lofts in Liberty Village, for example. One of the first condos to open in Liberty Village and still one of the best ones. Some of the newer ones are, architecturally speaking, unimaginative and dull, and surprisingly pricey. Same goes for the Distillery District. Pure Spirit was one of the first ones to arrive, and is still one of the best designs I've seen.

In areas that had a lot of vacant land before they became condo meccas, like Liberty Village and the Distillery, it's easy to see why the early bird gets the worm. Corktown will be interesting since all the buildings went up all at once - no one actually got there first, though some can argue that a few arrived a little earlier than others. Regardless, it may be tough to pick the best one of the bunch yet. What Corktown does have over an area like Liberty Village is a planned neighbourhood. The parks, the infrastructure, the size of the building were all smartly laid out first to fit in with adjacent neighbourhoods and natural areas. It did not run the risk of becoming overdeveloped and too densely populated. Overdevelopment can make transit and driving a lot more unpleasant than it needs to be.

In the future, Toronto still has some areas that may still undergo some condo-ization. Once that GO station is built is Weston, I suspect they will start to see some condos going up there. Regardless, if you are a risk-taker who buys the first condo in the neighbourhood where no condo has gone before, or if you are buying in one of the first condo buildings to go up in an area that has already been completely filled up, buying those "get there first" condos can be a smart purchase. I wouldn't say it's a hard and fast rule, but it's a good rule of thumb.

Is There Such A Thing As An Age Appropriate Condo?

For a long time, there have been certain undeclared turf rules about condominiums in Toronto. Rules that have to do with the age of the condo owners. Buying a condo, like every day life, has a certain level of age appropriateness. Just what do I mean by that? Well, it's not a judgement like: Any one who is above the age of 18 should not be riding a skateboard. But, there are certain condos that attract different age groups. 

In Toronto, there are neighbourhoods that are younger. Liberty Village seems to be largely for those in there 20s and 30s. If you have a dog, in addition to your youngness, even better. Any older, and you may feel like the adult chaperone at a high school dance, though I do know many 40 plus Torontonians who are happy clients in these parts.

It is true that young people are more likely to buy condos since they are overwhelmingly first time buyers, and  houses are increasingly getting out of their price range. Condos seems like a natural fit for the young. This trend will continue in Toronto in the years to come. There are still some houses for sale for first time buyers, but there will be fewer and fewer as the years pass.

The younger set also like condos because they can live right in the city as a first time buyer. One young client, who is selling his condo, said to me this past weekend: "Me and my girlfriend are moving to Oakville. Toronto was for fun." So, there is a view out there that Toronto is a kind of playground for the young and the single. A place to have fun and be all Sex In the City. Then, you go the burbs to have kids or get a bigger place.

On the flip side of that, you have the older people condos. Traditionally, these buildings were built in the 80s, have huge maintenance fees and are prone to having a fussy condo board.  The upside is that they are quiet, and the units are enormous. The young may be easy going and light, but wow, they sure like to party. At least that's the commonly held belief. Seniors like condos because they are easier to maintain and there's no stairs.

For a long time, I found that these ages didn't mix much in condoland, but I'm starting to see a bit of a shift. 

Recently, I have seen a huge surge in the numbers of people who want to buy a condo because of the ease of owning one. I see Empty Nesters in their 50s and 60s ditching their suburban house and all the yard work that comes with it for a trendy condo near theatres and coffee shops. I am surprised at how many foodies there are, of all ages, that need to be in the city, walkable distance to good restaurants.

I've also noticed a large number of cottage owners that prefer to have an easy place to keep in the city, but a house on the lake in the warmer months that they can work on.  They want to be able to lock and leave their condo for weeks. 

And I'm also seeing a lot more young people interested in buying older condos for the bigger space and the quiet, older neighbours. Let's face it. Some younger folks work long hours and can certainly appreciate the quiet. 

Now, it's not like all the walls are coming down. Most people over 50 still ask me why a converted loft has all the pipes exposed.  "Hasn't the ceiling been finished yet?" they wonder. And young people do tend to gravitate to the places where all of their friends live. 

But I think the mixing of ages that I'm seeing is a sign that Toronto is maturing and becoming more interesting. It seems to be attracting more people who are drawn to the lifestyle of the city. Cities of the past used to imply a kind of alienated place where people can get lost, and be alone around millions, but what I see now are the formation of neighbourhoods and condo boards that foster community and interaction. And that's a good thing for any age. 

Residents' Groups: Friend or Foe of Toronto?

Toronto is a city of neighbourhoods. We've all hard this countless time. It's all a part of the Toronto brand. And though this point may have been driven home a little too much at times, it's true! In fact, we are becoming increasingly more splintered into a greater buffet of neighbourhoods. And I think that's a pretty amazing thing.

Even neighbourhoods that have never existed before have sprung up in the last 10 to 15 years with a new identity and a group of residents that are proud to be a part of their little village in the big city. There's the Junction Triangle, Liberty Village, and even the Distillery District that just didn't exist as identifiable neighbourhoods not too long ago. 

And what makes these areas successful are the people who live there. They form residents groups, condo boards and business improvement associations. They encourage fresh businesses to come to a given area. They bring in farmers' markets. They go to derelict land and plant pretty gardens. They make you walk through your neighbourhood with a feeling that things are getting better, that life is getting better, and that you should have pride in living in your neighbourhood. And for all of that, I give kudos to the residents' groups of Toronto. 

But it's not all flowers and farmers' markets. These groups can be quite powerful as well.  They can shut down some of the biggest developers in the city.  When a developer was planning on putting in a massive Smart Centre south of Eastern along the southern boundaries of Leslieville with a Walmart as it's potential anchor, the neighbourhood rose up in revolt and stopped the development in its tracks. In this case, the villain, Walmart, is an easy target as the bland, box store that could decimate any distinctiveness a little neighbourhood may have. So, it's easy to cheer on the residents' group here. 

For the most part, I am thrilled that neighbourhood assoiciations exist to keep developers in check. Still, I've seen neigbourhood associations get crazy. And strangely, it often happens in more established neighbourhoods where the residents don't want any thing to change. A classic case of NIMBYish (Not in My Backyard). So, at at time when the Beach could use a bit of an overhaul on it's tired commercial strip, the residents association rises up and shuns the idea of a condo being built, a condo that is mid-sized, and will bring in more residents to the area, and in turn, more people to support better businesses. 

I don't want to weigh in too much here on this particular debate, but I do want to make a point: The problem with some residents groups is that they want to block every thing. Keep their neighbourhood from changing in any way. There's no doubt we are living in a city where there is going to be more densification in every corner of Toronto. So, get used to denser living. Dense living does mean we may have less privacy, and more traffic, but it also means better businesses and more vibrant commercial hubs because there is a larger base to support the businesses. I've witnessed some interesting condos get turfed for the wrong reasons by the power of a residents group. I've also witnessed the same group block a really bad condo idea. Developers do need to be kept in check, and even shut down at times, but I think it's wiser to come to the table with some creative ideas on how to make change work, not screaming: No way! Not in my neighbourhood! And hopefully this will lead to the right kind of change in your corner of the city.  

Pretty but shallow?

Another performance map came out today about Toronto's real estate market in the past year. I cannot resist these things and will spend a good chunk of time staring at each neighbourhood and wondering why some (and in fact most) have increased in price and a few have kinda bombed. I certainly believe that some neighbourhoods and micromarkets have a better chance at appreciation than others. I enjoy how this interactive map gives you the stats in each neighbourhoods, though I have to say that these neighbourhoods do some times contain vastly different kinds of housing.

On the downside, this kind of map can come off as a little too simplistic. For example, according to the map, Liberty Village properties have actually dropped in price from 2010 to 2011.  It suggests that the prices of condos (which is most of Liberty Village) have fallen in price. I feel that the prices in this area with existing condos, particularly a number of conversion projects, have increased in value. So, it's not so much that properties have fallen in value, but that newer, smaller condos have come to market at a lower price point bringing the average down. Kinda hard to get across in an interactive map.

So, have fun with the map, but don't take it too seriously. http://bit.ly/ozFwar