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Choosing a pre-sale


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#21 MarkoJ

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Posted 14 June 2018 - 08:28 AM

Keep in mind pricing is also super important in this equation and we only really know the pricing for the Jukebox so far.


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#22 jonny

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Posted 14 June 2018 - 08:29 AM

I've heard that starting strata fees are often too low, particularly since there is a requirement to build up the CRF. Not sure if that is true though.

 

That's what people say. Yes and no, IMO. The CRF is a red herring, in my opinion.

 

Our fees are increasing 5% in year 2, which isn't too bad, really. 

 

Starting strata fees are essentially set by the developer. I suspect some developers try to keep these low. Our developer had some fat budget line items (IMO). We have saved in some areas. 

 

One major expense that grows and grows over time is elevator maintenance. Elevators are notoriously expensive to maintain and service.



#23 jonny

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Posted 14 June 2018 - 08:34 AM

Hi Everyone,

 

I'm rather new to Victoria, and am having a hard time discerning which areas of downtown are the best value. I'm looking at a one bedroom at Hudson place 1 vs the Jukebox on view street, or possibly the Ironworks. Sans price (though that may make my choice for me) what area/developments would you choose and why?

 

Thank you!

 

Best value as in cheapest? Probably Jukebox. HP1 will be the most expensive, sqft wise and strata fee wise. 

 

Cleanest - probably Jukebox

 

Quietest - probably Jukebox

 

Most metropolitan - HP1

 

Area with most potential - Ironworks

 

Nicest area today - Jukebox or HP1 depending on what "nice" means to you. Trees and nice neighbourhood streets nearby? - Jukebox. Core urban - HP1. 

 

Least likely to have major construction nearby for years and years - Jukebox. 

 

Least street people activity - probably HP1

 

Best views - definitely HP1

 

They're all pretty central, but HP1 would be more central, IMO. 



#24 Nparker

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Posted 14 June 2018 - 09:08 AM

...One major expense that grows and grows over time is elevator maintenance. Elevators are notoriously expensive to maintain and service.

Tell me about it. We replaced the elevator in my building last year and my share of the 40% that wasn't coming from the CRF was still more than $1100.



#25 jonny

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Posted 14 June 2018 - 10:21 AM

Tell me about it. We replaced the elevator in my building last year and my share of the 40% that wasn't coming from the CRF was still more than $1100.

 

Our monthly servicing is like $595 per month and this is with a "preferred" long-term deal with Thyssen-Krupp...

 

A friend of mine's building had to replace a motor in one of their elevators. It was something like $50k in parts + labour. Crazy. 


Edited by jonny, 14 June 2018 - 10:22 AM.


#26 nerka

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Posted 14 June 2018 - 11:43 AM

Our monthly servicing is like $595 per month and this is with a "preferred" long-term deal with Thyssen-Krupp...

 

A friend of mine's building had to replace a motor in one of their elevators. It was something like $50k in parts + labour. Crazy. 

These "preferred" long term deals don't always work to the advantage of the building



#27 lanforod

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Posted 14 June 2018 - 12:46 PM

Basically two companies share a duopoly in the elevator space, right? Otis and Thyssen-Krupp?



#28 Mike K.

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Posted 14 June 2018 - 12:49 PM

There’s also Richmond Elevator, Kone and Schindler in these parts.

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#29 Casual Kev

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Posted 16 June 2018 - 10:23 PM

Best value as in cheapest? Probably Jukebox. HP1 will be the most expensive, sqft wise and strata fee wise. 

 

Cleanest - probably Jukebox

 

Quietest - probably Jukebox

 

Most metropolitan - HP1

 

Area with most potential - Ironworks

 

Nicest area today - Jukebox or HP1 depending on what "nice" means to you. Trees and nice neighbourhood streets nearby? - Jukebox. Core urban - HP1. 

 

Least likely to have major construction nearby for years and years - Jukebox. 

 

Least street people activity - probably HP1

 

Best views - definitely HP1

 

They're all pretty central, but HP1 would be more central, IMO. 

 

An important consideration for Jukebox is that a good chunk of the units are under 500 sqft, with many sub-400 sqft studios. Could be an AirBnB hotspot, if that's a bother for someone buying to live in the building.



#30 Mike K.

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Posted 17 June 2018 - 09:02 AM

It can’t be used as such. The land was never zoned transient and the City will not allow the units to operate as standalone AirBnB’s.
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#31 Nparker

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Posted 17 June 2018 - 09:12 AM

It can’t be used as such. The land was never zoned transient and the City will now not allow the units to operate as standalone AirBnB’s.



#32 Mike K.

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Posted 17 June 2018 - 09:20 AM

Not! Thank you.

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#33 Casual Kev

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Posted 17 June 2018 - 04:57 PM

It can’t be used as such. The land was never zoned transient and the City will not allow the units to operate as standalone AirBnB’s.

oh that's interesting, took the opportunity to read about last year's bylaw changes while I was at it.

 

Do the other municipalities have similar restrictions or is it a Cov thing?



#34 Mike K.

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Posted 17 June 2018 - 07:17 PM

Just CoV so far.

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#35 RFS

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Posted 06 February 2019 - 10:59 AM

In VV's experience, what is a rule of thumb when making an offer on a pre-sale?  Can you expect to get much less than the listed price?  And if you do not use a realtor can you expect a discount for that?



#36 Mike K.

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Posted 06 February 2019 - 11:10 AM

Certainly not much less, but it never hurts to ask. You can also get creative and ask if some upgrades can be worked in, or if they'll allow a lower down-payment.

 

Rule #1 is not to be a bull in a china shop. A smooth negotiator usually gets his or her way, and a hot-shot thinks they got their way.

 

Of course the easiest way to go about it is to call Marko and split his commission. Bam.


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#37 Bob Fugger

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Posted 06 February 2019 - 11:37 AM

Of course the easiest way to go about it is to call Marko and split his commission. Bam.

 

I mean is that your personal opinion or your opinion as an advertiser?  :banana:

The best way to get mucho ducats off of a presale is to align oneself with a realtor specializing in the sale of condos and condo developments.  I've heard of a recent example where a well-respected developer has gone to an equally well-respected real estate firm that specializes in the sale of condos and inquired if the realtor had a pool of interested clients ready to take a couple of dozen presale units off of his hands, in exchange for discounting the units.  The realtor of course is happy to do so, but recommended to the developer that he come back to him with a proposal that offers discounts beyond the usual "Save the GST" type savings.  As I understand it, it's still in negotiation.

 

So TL;dr - hook up with a realtor that specializes in selling and marketing condo development presales.



#38 Mike K.

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Posted 06 February 2019 - 04:42 PM

Jesus, Bob, you left out the most important part, the special handshake! ;)

In all seriousness, it sounds like what you're describing are components of a few scenarios that can play out with pre-sales:
- a group of investors help a slower project qualify for construction financing by acquiring X-units at X-price
- a group of investors make a bulk purchase with the intent to sell upon completion
- a group of investors make a bulk purchase with the intent to operate the units as managed rentals (no longer short-term, that's done and that has killed a lot of these bulk purchases)

In the above scenarios the buyers aren't interested in the "units" or even the project, per se, as much as the numbers of the units. They could care less whether it's got this knick-knack or that, or whether it's got the bathroom next to the kitchen or next to the den, etc. I've seen several of these scenarios play out and they have never involved an end-user or just a dude who wants to buy his first investment condo, etc.


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#39 MarkoJ

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Posted 06 February 2019 - 05:39 PM

Mike is right, it would be tough to package a bunch of owner-occupiers into a group purchase package. 

 

You do see a bulk purchase occassionally but usually it is sophisticated investors or one person with a ton of cash. For example, looks like one company picked up the entire 8th floor of the Lyra building for the purposes of re-selling.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#40 Bob Fugger

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Posted 07 February 2019 - 06:40 AM

It's definitely unconventional.  I'll let you know how it turns out.  Unfortunately, I couldn't take advantage, as I am leveraged out to hell and back according to the new mortgage rules.


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