This video is for you if you are looking for a condo investment significantly cheaper than downtown Toronto.
1 Bedroom starting at $520,000
1+Den starting at $550,000
2 Bedroom starting at $680,000
Very attractive pricing indeed!
But, great pricing alone does not justify a great investment.
It needs to come with great growth factors because the goal of your investment is to make money.
#1 The Government
Last week, we talked about the provincial government opening up 7,400 acres of land in the Greenbelt for housing development.
A majority of it, over 4,200 acres, that’s more than 57% of the new land, is located in one city.
It is not hard to see where the government wants the developments to be, right?
You can’t go wrong investing where the government is investing heavily in.
Look at Regent Park.
Look at the Vaughan Metropolitan Centre.
#2 The 55 Acre Masterplan
The Greenbelt is painting a big picture for great future growth in the city overall.
And I’m going to tell you about an expedited path for success.
The development I want to show you is a 55 acre masterplan community right at the city centre.
It will be developed around an existing shopping mall with a direct connection to the Go train station today.
The concept is very much like replicating the success around the Square One area in Mississauga, where developments started from a decade ago.
Better yet, the entire 55 acres will be developed by one single developer.
That’s a big plus because they can plan out everything as a whole.
And most important of all, they can have flexibility and control over pricing.
In order to sell in the current market sentiment, they know they need attractive pricing.
That’s why this very first building is priced below market.
They can afford to do so because they have many more buildings to come into the masterplan, so they can just catch up on pricing later.
#3 Resale and Rental Prices
We know that pre-construction prices are typically 10 to 15% more expensive than the resale comparables.
That’s because we are buying a future product so the prices have to factor in all the inflation on construction costs over the years.
But for this particular project, it is priced at only 2 to 5% above resale prices.
And with the strong rental market, the rental yield today is already high up at 5%.
I will show you this resale comparable as well when we go over there.
Here we are, at the Pickering Go Station.
This is the bridge that connects over to the Pickering Town Centre shopping mall.
The Pickering City Hall is right over there and that tells you that we are right at the city centre.
The opportunity I want to tell you about is the 55 acre masterplan development that will go around the already existing shopping mall.
It will be developed by CentreCourt, one developer for all 55 acres.
Let’s talk about phase 1 of the development.
It is going to have a park and 4 condo towers.
The one that is going on sale right now Tower 1, 45 storeys with 500 suites.
One bedroom starts from only $520,000.
One plus den, $550,000.
Two bedroom, $680,000.
Let me show you the resale condo I was talking about.
It is just right across the 401 and was newly completed just a few months ago.
Here’s the recent SOLD data.
Resale - 1480 Bayly St
1 Bedroom - $495,000
1+Den - $535,000
2 Bedroom - $645,000
Like I said, you typically see a 10 to 15% price gap between pre-construction and resale.
It is only in this very first building in the Pickering City Centre development, you see such a small price gap because it is priced to sell.
Let me show you the recent rental data as well.
Rental - 1480 Bayly St
1 Bedroom - $2,000
1+Den - $2,300
2 Bedroom - $2,700
127 units were leased since the condo was first occupied at the beginning of this year.
There are currently only 2 units available for rent.
This tells you how strong the rental market is in this area.
And as you see from the rents, it’s a 5% rental yield.
So if you are looking for a low priced investment, with a great rental yield and a great growth potential, the Pickering City Centre is your top choice.
Schedule a call with me to find out which specific unit I would pick to get the best investment return.