Tuesday, 10 March 2015

No "Shoddy" Condo Buildings Here

While many condos in Toronto are being deemed "shoddy" and have a predicted life span of less than 20 years, Options for Homes recently won a DMDA Architectural Design Award.

This article from the CBC discusses the future of  so called "shoddy" condominiums in Toronto:

A Toronto-based real estate agent is quoted in the article.  He said: 

"It's all about timing. We advise most clients to get out before that five-year mark," said Roy Bhandari of Sage Real Estate, which notched nearly C$50 million in Toronto condo sales in 2013, with clients typically from China, Eastern Europe, or the Middle East. "It's the magic number because after five years the warranties are expired."

Real estate agents are advising their foreign investor clients to sell their condos within five years because after that the condos will start to deteriorate? Are we the only ones that see something wrong with this situation?

These condos are built for the short term.  There is no consideration for the purchasers buying the condos after the initial investor let alone their children and the future generations who will have to clean up this mess.  

The article also says, "Real estate brokers are dealing mostly with 10-year investors who want to buy from a blueprint, double their equity during the five years of construction, and enjoy rental income and price appreciation for five more years before selling and investing again elsewhere."

Sustainability is the last thing on these developers, builders and investors minds.  They are looking to build their product as cheap as possible and maximize their profit to make a quick buck and then abandon the people who lose money and suffer in the aftermath. 

Options doesn't believe in sacrificing quality to keep our prices low - instead we eliminate expensive amenities and marketing initiatives that drive the cost of each suite up by thousands of dollars.  In 20 years of developing condos and creating communities we have never heard the word "shoddy" used to describe our work.

Homeowner Jim Munroe explains how he got more than he expected without paying for upgrades:

Unlike other condo developers who build condos as cheaply as possible because their only goal is to make a profit, Options co-invests in your unit (in the form of the Options Loan).  The fixtures and overall building quality are better than average because when homeowners sell or rent out their suite they are required to pay back the Second Mortgage. The loan appreciates by the same percentage as the sale price of the condo so Options shares in the benefit of producing quality condos as the units are sold.

Those additional funds are then allocated to create more cost-effective home ownership opportunities in the GTA and around the world. Without quality design, architecture and construction the suites would not appreciate in value and Options would not have the means to create more housing and Options' not-for-profit model would fall apart. 

It's a fact - The better quality the condo and community the more each suite will appreciate in value therefore the greater the funds which that will be allocated to go towards creating more cost-effective housing.  

Options has been creating communities for over 20 years and we remain committed to producing the highest quality designs and construction at the lowest possible price, that's what our model dictates and that is why we continue to be able to grow the Options model and promote the vision around the world! 

Visit our website: optionsforhomes.ca to learn more