September condo deals

Smart buyers took advantage of a slow month and reduced prices to sign on the dotted line, some of whom were handsomely rewarded:

A condo with a view in a renovated, well managed building: 1 bedroom with parking in Beechwood Village for just $208K

$270K for a nearly new 1-bedroom with stainless steel, hardwood floors and parking between the Market and U of O

2 bedrooms with parking in the East Market Lofts for $350K

Only $380K for a 2-bed/2-bath condo with parking
in a Charlesfort building!

$399K for a 1460sqft loft in Wellington Village, complete with parking and designer finishes... why buy new???

360 Lofts set for early 2012 occupancy

Construction on 360 Lofts—yet more boutique condos self-promoted as Ottawa's fastest selling project—seems to be well underway, albeit well behind schedule for the original occupancy date of Fall 2010 despite selling 70% of units in just 48 hours as far back as June 2009.

Those of you haven't heard about this latest project in The Market needn't feel bad as advertising was supposedly done entirely by word of mouth (although I'm certain coverage by The Ottawa Citizen didn't hurt in selling the other 30%).

Aside from this press coverage, the developer has actually been very tight lipped about the entire project, so much so that I was given the third degree by a sales rep just for asking about the latest occupancy date, currently projected for early 2012 but with nothing yet set in stone.

Claridge Plaza 3, Take 2

No rest for the wicked as sales proceed apace for Claridge Plaza 3, with approximately 50% of units sold over the past 2 weeks.

Investors, quite predictably, have snapped up The Broadway, cozy 440sqft studios that will be well suited to short term renters and those in need of a pied-à-terre—starting at $180,000 these made for an attractive investment:


The "People's Choice Award" goes to The Howston, a 1-bedroom plus den at 660sqft facing Rideau St — possibly because of its views of the East Market Lofts and other points north? As of this posting, all but two of the Howston units have been sold, priced from $258,000 to $295,000:

With regards to the Howston layout, I must confess that I remain ambivalent about the overall usefulness and desirability of "the den". With laptops and Blackberrys being the modern choice for home technology, these spaces often see more use as a TV room, rather than an office or guest room. That said, the den has become something of a fixture in Ottawa's new condo market and seems to be with us for the forseeable future.

At any rate, the Howston den is actually an alcove between the bedroom and the bathroom, space I would rather incorporate into the bedroom, with a walk-in closet connecting to a "cheater ensuite".

The trade off in buying a unit facing South will be the eventual view of Claridge Plaza 4, but on lower floors this will be compensated by the planned greenroof between the two towers, but more importantly the absence of the transport trucks that ply their way along Rideau St at all hours of the day and night.

This would be one of the reasons my pick of this project is The Canal, a well designed floorplan that covers 665sqft with a generous bedroom at 10' x 11.5' and a separate walk-in closet with almost a third as much space.

Although this one bedroom is only 5sqft larger than the Howston's one plus den, I find the living/dining room more useable as well as more generous, spanning a full 21ft. I also prefer that the entry closet is adjacent to the front door, not the washer/dryer:


Lastly, I love that the balcony is framed on its left by the unit itself, rather than jutting out from the building, which has sadly become the norm. Is it just me that feels somewhat uncomfortable drinking a martini on a glassed-in precipice, 15 storeys high? OK, maybe it's just me...

Food for Thought: Claridge Plaza Phase I

"I have been renting in Phase I of Claridge Plaza for almost a year. I recently bought a townhouse in centretown and will be moving shortly. A few observations on Claridge Plaza..."

Positive

• Location is great—three minutes walking to the Market or Rideau Centre and even closer to the beer, liquor, grocery and drug stores
• Views are good on most sides even from units that aren't that high
• The daytime security guy is excellent
• The lobby has a hotel-like look

Negative

(Note I am a tenant, and the owner and property manager have not pressured Claridge to fix the problems—it may well be they would fix these problems if pressed by the owner.)

• The hardwood floor creaks like an old house
• The base appliances in the kitchen are terrible (major freezer burn within a few days no matter what the temperature setting, stove is not a self-clean model, dishwasher does not clean anything below the heaviest setting)
• The pool is tiny, even by condo standards
• The "gym" is small, has limited equipment, no proper climate control (never the right temperature) and has a very low ceiling (anyone over about 5'10" would probably hit their head using the treadmill)
• The elevators have been problematic from day one
  

"Demographics—I previously lived in the East Market which was mostly young professionals with a few empty-nesters and most units were owner-occupied. There appear to be few white collar workers in the building and a lot of students or people that seem to work in the service industry. I realize I am stereotyping a little, but I am guessing there are a lot of units being rented out (or owned by parents) which is not good for the long term viability of the building."

"Trucks—this isn't Claridge’s fault, but all four streets surrounding the complex are used by trucks, nearly 24/7. In addition, Rideau is a major bus route and Cumberland is the main route into the market for the Laurier fire station. I find it almost impossible to leave a window open or use my balcony."

—Claridge Plaza Tenant

Update: Claridge Plaza... Phase III and IV

While Claridge Plaza have yet to announce pre-construction sales, they have purchased the National Bank of Canada building on the corner of Rideau and Cumberland streets with a view to building Claridge Plaza Phase III and IV:



No word yet as to the timeline for these next two buildings, but with Phase II nearing the halfway mark and architectural renderings of III and IV on display at the sales office, I would expect to hear something concrete (no pun intended) by the end of the year.

Condo of the Week: 100 Bruyère St in The Market

I am sometimes asked what condo options are available for those who don't like high-rise buildings. Ottawa is fortunate to have a number of smaller, intimate condo projects peppered around the city, but for a buyer these are catch as catch can as they don't come up for sale all that often.

A number of such condos are tucked away in the Golden Triangle, but there are also quite a few of these boutique units in the northern part of The Market such as the one currently for sale at 100 Bruyère St:

Click here to view photos and details

Built in 1986, this award-winning building is a red brick low-rise just off Sussex Drive, with a common courtyard at the back, underground parking and 17 cozy units with large principal rooms, woodburning fireplaces and large balconies.

There are certainly pros and cons of small scale developments, such as the cost of potential maintenance work being spread over relatively few owners. That said, there are clearly those who appreciate the tranquility of being part of a smaller condo project as these units tend to sell fairly quickly.

Buying vs Renting a Condo

An article in today's Ottawa Citizen talks about tenants buying condos and driving up the vacancy rate… [Click here for article]

In short, "completions of condominiums, which continue to attract renter households looking to move into home ownership, are decreasing demand for rental housing," according to CMHC.

What surprises me is how many renters are unaware that they are actually in a position to buy a condo, and that affording one is within their reach with just a 5% downpayment and a steady job; or not a steady job, if you're self-employed and have a good credit history. Factor into this equation the ridiculously low mortgage rates seen over the past few months and it makes buying a condo too good an opportunity to pass up in many instances.

But don't take my word for it, consider the following real life example:

Two identical 1-bedroom condos, both brand new, were recently listed in Claridge Plaza at 200 Rideau Street, one of which sold for $262,500. Assuming that the Buyer put down a minimum of 5% (which would be $13,125 in this instance) and got a 5-year fixed term at 3.75% (thanks to a mortgage broker), her payments are now $1278/month.

Meanwhile the other condo, the exact same model located just 3 floors below, was rented out by a savvy investor for $1300/month.

While the mortgage payment of $1278 certainly doesn't include condo fees ($210/month in this case) or property taxes, neither does rent pay back in the form of equity when it's time to move. Even factoring a modest 3.9% annual increase in property values, should the Buyer head to the 'burbs in two years, she could be looking at selling that same unit for $289,500, hence cashing out with a profit of $27,000 plus her original downpayment of $13,125... for a grand total of about $40,000 in equity/personal savings/whatever-you-want-to-call-it, in just 2 years.

Obviously these numbers are just an example and don't work for everyone. But if they do work for you, and you'd like to talk about buying your first condo, I'd be happy to get together and chat.

Condo of the Week: The Galleria at 200 Besserer

I recently had a chance to visit this new building and my first impression was favourable, mostly because of the location of this project.

Straddling the Market and Sandy Hill, The Galleria is well situated to offer the flavour of an established neighbourhood alongside the buzz and bright lights of urban life. Nestled on Besserer St between King Edward and Cumberland, this 12-storey building fits nicely along the northern perimeter of Sandy Hill, and the south facing units offer serene, residential views with a feel good vibe.