GTA Home Hunt
At $400,000, this Scarborough condo is a rare underpriced gem — almost impossible to find in the city.
#GTAHomeHunt is a weekly series from the Star that gets into the details of real estate listings in Toronto and the Greater Toronto Area. Have a tip? Email us at social@torstar.ca
Price: $399,000
Neighbourhood: Woburn — Scarborough
X-factor: This one bedroom, one bathroom condo unit comes with its own parking spot, and compared to other similar properties, is underpriced.
Also, it’s located within walking distance to Scarborough Town Centre and the TTC’s Line 3.
At that price, it’s a great investment for someone to buy to rent out, or a starter home for young family looking to have their own property.
If you’re a first-time buyer, you might be wondering, is this a good deal? We brought in our expert, real estate agent Othneil Litchmore, to gain a better understanding of why this property costs what it does.
Why is it priced this way: At about 600 to 699-square-feet, this condo at 8 Lee Centre Dr. is currently priced at $399,000 strategically to attract buyers, and is expected to sell fairly quickly.
The apartment is listed to go for around $430,000, but Litchmore notes that a similar unit in the building sold for around $475,000 in August and another for $492,00 back in May.
It’s why he sees it selling closer to $475,000.
“At $399,000 it’s attractive, you’re not going to get much in the city for (this price) anymore. It’s something that someone should consider,” Litchmore said. “It’s a good starter property to get your foot in the door.”
The building is equipped with its own workout room, a squash/badminton court, an indoor swimming pool, sauna, plus a game room and a small park outside for children.
Another reason for the relatively cheap $399,000 price tag is due to the high maintenance fees, listed at $604 a month, which covers the water, hydro and heat.
“Units with higher condo fees are usually cheaper than units with lower condo fees,” said Litchmore.
“Scarborough is also not as desirable as downtown Toronto. A similar unit is going to be maybe $50,000 to $100,000 more.”
The unit sold for $158,000 in 2006. While the unit is newly renovated, the building is more than 20 years old, which explains the high maintenance fees, but should also be considered as those fees could rise with wear and tear.
“Typically as a building gets older, the fees go up,” said Litchmore. “More stuff starts to break so then the condo board has to keep raising the fees in order to cover the cost.”
For someone that’s eager to get into the market, the trajectory of this condo is expected to rise.
With Toronto’s crazy real estate market and a lack of affordable housing, condos at this price range are pretty rare and will always be in demand.
Litchmore says renting the place would cost someone around $1,750 to $1,900 potentially as the location is great, despite the condo not having the greatest view.
“I think it has rental potential for the future. It’s a good spot to get into the market. The price point and the location make it a good option,” Litchmore said.
Tips to finding places like this: Litchmore advises people looking for a condo at this price range to be open to living a bit out of the city and be OK with commuting.
You also need to look into the potential issues that may comes with living in an older building as fees can pile up as time goes by.