Claridge Moon - VIP Launch Update

Claridge-Moon-VIP-Launch-Ottawa-Condo.jpg

**For more information about Claridge Moon, visit our Claridge Moon project page HERE. All information about the project will be located here, including floorplans, renderings, construction update, news articles, pricing, etc. **

Yesterday, Claridge held its first launch for it’s newest building, Claridge Moon. The turn out was very good with a constant line around the building. Unconfirmed number of units that have been reserved is 54 units or just over 20% of the building already reserved, after the first inital launch. The public launch begins tomorrow at 12pm at the sales centre, and we are expecting prices to rise slightly.

Claridge-Moon-VIP-Launch-Event-Poster.jpg

In terms of pricing, the building average is $648sqft with lowest being $575sqft up to $900sqft. If you don’t include the penthouse units (floors 26 and 27) the largest unit is 910sqft, and the smallest being 465sqft. Putting the average size of the building at 667sqft (not including the PH’s). Lowest priced unit is the $300,000 Titan floor plan, which is 510sqft. Previous to that was the Telesto floor plan (which is now reserved) of 465sqft for $272,000. Note that all units including a storage locker at no extra charge.

The penthouse units, which are located on floors 26 and 27, range in price from $448,000 and $464,000 (Vesta floor plan 640sqft), to $946,000 (Moonlight floor plan 1160sqft), and up to $1,635,000 (the Pandora floor plan 1890sqft).

There is no question that the excitement for this project is high - proximity to the LRT, and a Sobey’s in the ground floor podium.

Few more details:

- Condo fee’s are approximately $0.62/sqft
- Parking is $45,000 per spot ($77.74/month condo fee)
- Occupancy of September 1st 2023
- 25% Total Deposit ($20k to reserve, 10% (less the 20K) at signing, 5% 30 days from signing, 5% at excavation, 5% at interim occupancy)

Questions about pre-construction condos in Ottawa? Trying to decide on the best project for your goals? Let’s chat. Fill out the form below!

Name *
Name

Ottawa Condo Market Statistics - April 2019

Ottawa-Condo-Stats-and-Data.jpg

Every month we take a closer look and brake down the sales data of downtown condos from the previous month. Here are the statistics for April 2019 and the top five "downtown" area's - Centretown, Byward Market and Sandyhill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment style condominiums, and only what sold through the MLS. Also, DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is almost every single transaction to be roughly 10-14 days.

Little Italy - Stats.jpg
Westboro - Stats.jpg

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Claridge Moon - Launch Date Confirmed!

Claridge Moon Launch May 11th.jpg

Claridge has announced a new launch date for its latest project located at 383 Albert Street, at the corner of Albert and Lyon. Claridge Moon is set to launch on May 9th 2019 at 4pm for VIP or May 11th for the public. More information will be provided as we get closer.

Claridge Moon is set to be completed late 2022, comprising of a total of 259 units, with unit sizes range from 510 to 1225 square feet. This is also set to be the first and only residential property to be directly connected to a station on the LRT system.

**For more information about Claridge Moon, visit our Claridge Moon project page HERE. All information about the project will be located here, including floorplans, renderings, construction update, news articles, pricing, etc. **

Bank Of Canada - Holds Interest Rate At 1.75%

BoC-Interest-Rate-Update Ottawa Condo.jpg

Again, for the fourth straight announcement, the Bank Of Canada has left the benchmark interest rate unchanged at 1.75%. The last rate change was in October 2018, which was the fifth time since the summer of 2017 that the BoC had decided to raise the rate. This was the first announcement that did not include any mention of a need for future increases, which signals that the BOC is in no hurry to move the rate (unlike past announcements where it was mentioned). The BOC is projecting growth of only 0.3% in the first quarter of 2019, with a slightly more positive projection on the second quarter.

What does this mean? The BoC’s rate directly affects the rate that you will get from a retail bank for lending (mortgages and lines of credits) and savings products. When the rate is low, it means that it is cheaper to borrow money, but not as lucrative to save.

The BoC has eight fixed dates each year on which it announces whether or not it will change the policy interest rate. The announcement dates are January 9th, March 6th, April 24th, May 29, July 10, September 4th, October 30th, and December 4th.

Claridge Icon - Sales Update

Icon-Logo-Matt-Richling-Condos.jpg

* For more information about Claridge Icon, visit our Claridge Icon page, with all of the renderings, floorplans, detailed information, etc. CLICK HERE.**

Claridge Icon is selling with the building currently over 55% sold out. Only 150 units are available, ranging from $336,000 (610sqft Gable Floor plan on the 8th floor) up to $1.45M (1630sqft New Jacobson on the 43rd floor). There are a good selection of both one bedroom condos and up to larger two bedroom plus den units. Keep in mind that storage lockers are included in the price!

The 45 floor building is on track for an October 2020 occupancy. Claridge is asking 15% deposit to secure a unit, with parking available for $40,000 per spot.

Claridge Moon - New Launch Date?

Claridge-Moon-Banner-Logo-Ottawa-Condos-For-Sale.jpg

We last reported (March 13th) that Claridge Moon was set to launch on March 30th. We are now told that Claridge is getting set to launch the latest project “within the next month”, with rumours of the same thing roughly mid to late May. Pricing is still not set, however the Claridge sales agent explained that they will be roughly on par with pricing at Claridge Icon which is starting at $539/sqft, with a building average of approximately $616/sqft.

There is a lot of interest in Claridge Moon for its location and pricing - from both an owner and investor point of view. If you want to stay up to date, and interested in purchasing a pre-construction condo in Ottawa, let’s chat. Fill out the form at the bottom of the page.

**For more information about Claridge Moon, visit our Claridge Moon project page HERE. All information about the project will be located here, including floorplans, renderings, construction update, news articles, pricing, etc. **

Ottawa Condo Market Statistics - March 2019

Ottawa-Condo-Stats-and-Data.jpg

Every month we take a closer look and brake down the sales data of downtown condos from the previous month. Here are the statistics for March 2019 and the top five "downtown" area's - Centretown, Byward Market and Sandyhill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment style condominiums, and only what sold through the MLS. Also, DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is almost every single transaction to be roughly 10-14 days.

Centretown - Stats (1).jpg
Byward Market & Sandy Hill -  (2).jpg
Little Italy - Stats (2).jpg
Hintonburg - Stats (1).jpg
Westboro - Stats (2).jpg

Do you have any questions about how this information affects your investment or looking for more information to make the best decision about your purchase? Let’s chat! Fill out the form on the bottom of the page.

Landlords Guide To Renting Your Ottawa Condo

Landlords-Guide-To-Renting-Ottawa-Condo.jpg

Are you looking to rent out your Ottawa condo, but don’t know where to start? Heard too many horror stories about bad tenants? We have put together a short guide to help guide you with the leasing process and what to expect.

Know Your Condo

Gather all of the information that you can. Ask your condo board about the rules or restrictions on rentals. Some buildings in Ottawa have minimum lease length of three or six months (to stop short term leasing), and some have rules stating that all tenants must be from the same family (to avoid student or rooming homes). What utilities or services are included in the rent or in the condo fee? What about pet’s? Etc. The more information that you can find out, the easier it will be down the line.

Know Your Market

How much are you going to price the condo for? What are rentals going for in your building or area? How do they compare to your unit? What is the market like and can you take advantage of that? Are you looking to rent the unit furnished? We have seen prices jump around $200 per month this year depending on the building and location, due to a lack of inventory.

Marketing

Before we can get tenants into the property we need marketing materials (pretty pictures) that help gather interest. Is the unit vacant or do you still have your furniture in the unit? If you are still there, do you need to declutter and do any repairs or remove furniture? We almost need to treat it like you are selling. Remember we are trying to find a tenant who is going to love the place as much as you do and one who is willing to pay top dollar for that space.

Once everything is perfect we bring in our professional photographer to capture the unit. While you might think it is easy to rent with basic phone quality shots, or even no photos (depending on how hot the market is), having back up photos when the place looked perfect is invaluable. The tenants might not leave it the cleanest and to have the photos ahead of time is only going to save you in the long run!

Best Places To Advertise The Rental In Ottawa

Same as when you are selling, you want to get the maximum exposure that is possible. Industry websites like Realtor.ca are mandatory, but still important are Kijiji, Craigslist, Padmapper, Zumper, along with the more local sites! Are you targeting a specific tenant, such as a student (Ottawa or Carleton University), or diplomat or even specific embassy, political member or specific party, high tech crowd? Depending on the tenant there are specific websites that would be a better target for that tenant. To advertise to Carleton University students, we use Places4Students.com as it is the preferred vendor by the school.

Writing the Ad

Thinking like the tenant you are trying to attract and writing the ad to speak directly to them. Focus on facts and information, not fluff. Know your rules and listing off what is included in the rent. Things that might seem obvious to you, might not be to a tenant. Be clear and don’t use all caps (unless you

Showings and Inquires

Once the property ad goes live, you will start to get inquiries from interested tenants. Often they want some clarification about the ad (is “X” allowed, or is “Y” included in the rent?). Use these questions to help improve the ad if you are not getting the responses that you are expecting. The majority of the inquires will want to book a showing to see the unit. In a hot market, you can schedule a few times that work best for you. Make sure that when you are booking a showing you get some basic information about the person and what they are expecting (when do they want to start etc) so you are not wasting your time if that isn’t possible. Qualifying them as best as possible.

Tenant Selection

Once you have started getting tenants interested in applying, then you really need to put on your detective hat. We have all prospective tenants fill out a full rental application, which lists current and previous job and housing situations. It asks for references, about pets, expected start date, car information, and debts. We will also ask for proof of employment (such as pay stubs or letter of employment), plus we will pull there credit report (equifax etc) so we can see first hand their credit score and how they have managed their finances. We are trying to paint a picture of who the tenant is, and how reliable they will be. Once you have collected all of this, then call the references and employer and verify things that are on the application. You want to ensure they have not lied! Be careful when calling current landlords, often they will say amazing things about the tenant in order to get them out - helping problem tenants find a new place to call home! When speaking to landlords, ask facts, such as did they pay rent on time, etc.

The Lease

Once you have selected a tenant, you will need to have them sign the lease! The government has made this much easier with introducing the mandatory residential lease. It is quite easy to fill out, but take your time and ensure you fully understand each part of the lease. Just because you can cross something out or add a special clause does not mean it is legal or enforceable. You can always speak with your lawyer to help with any additional clauses or questions!

TIPS for condo landlords!

  • Don’t forget to change your insurance to landlord insurance! Plus make sure your tenants have property and liability insurance as well!

  • Often utility companies have Landlord accounts, so any days in between tenants are properly charged to you.

  • Be upfront with your tenants. We prefer open dialogue and good communication with our tenants. If you don’t want pets, make it clear in the add and tell those who apply.

  • Learn the rules, and don’t be afraid to ask questions if you are unsure.

  • It’s a business - so treat it like one. Keep a record of all of your expenses. Speak with an accountant. You can’t write off your time!

  • Explore the benefits of hiring a property manager. A great property manager is worth their weight in gold.

Questions about renting out your condo? Want help and guidance? Let’s chat!

The Slater - Only Three Units Left

199-Slater-Logo-Condo-Ottawa-Header-Watermarked.jpg
The Slater Condo for sale in Ottawa

The Slater, which was built by Broccolini and is located at 199 Slater Street, has only three units left that are available for sale. The building is sitting above the Alt Hotel and has a total of 178 units over 22 floors. Units range from 703sqft (plus a 51sqft balcony) for Unit 1901, up to 1,592 sqft (plus a 253 sqft balcony) for Penthouse 3.

The building is gaining a lot of attention for its finishing quality, superb location, and sleek amenities.

For more information about The Slater, or available condos located in downtown Ottawa, fill out the form below.

Breaking News - Federal Budget + First Time Buyers

Breaking News Ottawa Condos.jpeg

The Federal Government has announced the budget which includes a number of incentives targeted at housing affordability and helping first time buyers.

The budget includes two main changes, with a number of details still unclear.

The first incentive is the amount that an eligible first time buyer would be able to withdraw from their registered retirement savings plan (RRSP). The Home Buyers’ Plan will allow $35,000 (was previously $25,000) to be withdrew from the RRSP without having to pay tax on the withdrawal.

The second incentive is the introduction if the First-Time Home Buyer Incentive which would allow eligible buyers to finance part of their downpayment through a shared-equity mortgage with CMHC. This would be for eligible first time buyers that are making a downpayment of less than 20 per cent. CMHC would offer 10 per cent shared equity mortgage for new construction homes and condos, or 5 per cent for existing (re-sale) homes and condos. It is expected to start in September and last for three years minimum.

There are lot of details that are still unclear (shared equity? what about losses when properties sell? first time buyers - its not that simple! how much will they make when a buyer sells? etc.).

Any questions on how it could affect you or an upcoming purchase? Fill out the form on the bottom of the page and let’s chat.

Bowery - Sales Promotion

Bowery+Ottawa+Condos+For+Sale.jpeg

Richcraft has announced a sales promotion to push the remaining units at The Bowery. The “Closeout Sale” offers a discount on all units, plus a free storage locker during the month of March. Specifically, units up to and including 6th floor will be discounted by $6,000. All units 7th floor & up will be discounted by $5,000. There are still great units available across most price points and sizes.

Located at 255 Bay Street, The Bowery Condos + Lofts is 18 stories with 248 units ranging in size from 493sqft (S5 floorplan for $262,000) up to 781 sqft (T1 floorplan for $452,000) . Amazing rooftop amenities that are worth making the project a must-view.

** For more information about Bowery Condos + Lofts, visit our Bowery page HERE, where you can find floorplans, pricelists, renderings, photos, news clippings, and other information. **

Sellers Guide To Condo Assignments In Ottawa

Sellers-Guide-To-Condo-Assignments-In-Ottawa.jpg

Did you purchase a pre-construction condo in Ottawa, and are looking for a way to sell before your closing? You might have heard the term assignment, or seen units that are being sold as “assignments”. While not an easy task, an assignment can provide you with the ability to sell your “condo” without needing to close on it.

What is an assignment?

An assignment is a transfer by the Assignor (original purchaser) of the original Agreement of Purchase and Sale to the Assignee (new buyer). This means that they are not selling or buying the actual condo, but rather their interest in the deal. The Assignee is buying the ability to become the Assignor. You often hear assignments referred to as selling “paper” or selling the deal.

Why do condo assignments occur?

Condominium assignments typically occur for a few reasons. Often, the original condo buyer has had a change in circumstance and no longer wishes to close on the condo. a.k.a. partners, babies, pets, jobs, etc. The buyer might not have the funds to close or be able to secure a mortgage. Sometimes the original purchaser was a speculator who purchased with the intention of assigning the contract to profit from the increase in price or value.

Why can it make sense to assign my condo?

Money. One of the largest reasons it makes sense to assign your condo is that you don’t have to close on it. You don’t need to secure a mortgage and you don’t need to pay the closing costs. The new buyer will take on the builders adjustments or development charges. We have seen builder APS that states an additional 5% deposit payment on occupancy. If occupancy has not yet occurred, it would be the responsibility of the new buyer. The new buyer would also be responsible for the Land Transfer Tax, any interim occupancy fees, etc.

HST. You don’t have to worry about the HST rebate qualification.

First Time Buyer? If you are a first-time buyer, you would retain your status for the next purchase and be entitled to the credits when you do buy and take possession on some other property.

Why might it NOT make sense to assign my condo?

Restrictions. Marketing restrictions are often put in place by the developer when they allow the assignment. This can include restrictions to marketing the condo assignment on the MLS or even advertising it online. This alone can make the process very difficult. Thinking of advertising anyway? Builder contracts often state that if the assignment is advertised online, the builder can cancel your contract and keep your deposit. Not worth the risk.

Cost. Even though you are not closing on the property, there are still fees that you are responsible for. A builder will often impose a fee to allow you to assign your condo. This can range up to $8,000, plus charge their solicitors' fee’s (we have seen up to $2,000). You will likely have to pay a real estate commission (unless you find a buyer yourself). Plus your lawyer will charge slightly higher legal fee’s since the process is more complicated.

Tax. Any profit made will be taxed as a capital gain unless you are in the business of buying and selling real estate, in which case it will be treated and taxed as income. Yes, there was a time when you could get away with this, however, CRA has cracked down and is paying attention to real estate transactions. While these do not get registered on a title, assignments are still handled by the builder and are able to be caught by CRA.

Responsibility. Builders will always include a clause that states the original buyer is still responsible if the new buyer does not close. While it might originally seem like you are completely off the hook, the last thing you want is to find out that you need to close, or are responsible for the default of the assignee.

Top Dollar. While every project and unit is different, selling a unit without the ability for the buyer to see inside, or while a building is not fully finished can hold back the full value of what you can sell your condo for. For example - It is really hard for a buyer to get an idea of what exactly they can expect if the amenities are not finished, especially if the buyer will be an end-user. As well, there might be increased competition due to a surge of units.

Important things to know about condo assignments

Builder Approval. The first step in assigning your condo is finding out if the builder is allowing assignments. This is necessary because most original purchase and sales agreements have restrictions regarding assignments (or listed separately in a schedule). If the builder will consent to an assignment, the builder will need to provide written consent. This consent is usually a condition of the assignment agreement.

Deposit. Assignors typically want their money up front (this includes the original deposit(s) paid plus any profit) and wish to be out of the deal once the assignment agreement is firm. This is usually not practical because most buyers require a mortgage to fund the purchase and they will not get their mortgage until the building is registered and title can pass to the property. Expect the deposit to be held in trust until closing.

Time. Aside from the time, it will take to find a buyer and negotiate the details, you should plan for a number of days before the assignment deal is firm. Both lawyers (yours and the new buyer) will have a condition to review the documents - usually five business days or so. The buyer will want a condition for financing, which can be five business days or longer. Keep in mind that convincing an institutional lender to lend based on an assignment price is not as straight forward as normal financing. There are few sales for appraisers to base the new value on. And finally, you will need developer consent, which could take up to two weeks (or longer sometimes!), regardless if you had already asked before you started or not!

The world of condo assignments is a difficult and tricky one. If you are looking to get more information about assigning your pre-construction condo in Ottawa, fill out the form below and let’s chat.

Name *
Name

Claridge Moon - Launch Date

Claridge-Moon-Banner-Logo-Ottawa-Condos-For-Sale.jpg

Claridge has quietly announced the launch date for its next condo project. Claridge Moon, a 27-storey condo tower that is located above the Lyon LRT station, will launch on March 30th, 2019. There is no pricing yet, however the project will consist of 259 condo units ranging from 510sqft to 1,225sqft.

“The ability to incorporate the LRT in the Claridge Moon development is so unique — it is impossible to place a value on it for the future residents. Imagine being able to access the ByWard Market, Westboro or the University of Ottawa in just a matter of minutes without the inconvenience of traffic through the core.” says Neil Malhotra (Claridge vice-president) to the Ottawa Citizen.

**For more information about Claridge Moon, visit our Claridge Moon project page HERE. All information about the project will be located here, including floorplans, renderings, construction update, news articles, pricing, etc. **

Bank of Canada - Interest Rate Holds at 1.75%

BoC-Interest-Rate-Update.jpg

Once again, the Bank of Canada has released that it will keep its benchmark interest rate unchanged at 1.75%. The last rate change was in October 2018, which was the fifth time since the summer of 2017 that the BoC has decided to raise the rate. In the fall, there was a high guarantee that the rate would rise numerous times in 2019, however, with the economic slowdown that began in the fall (compounded by the slowdown in Canada’s oil sector), has led many to believe rates will hold or drop throughout the year.

What does this mean? The BoC’s rate directly affects the rate that you will get from a retail bank for lending (mortgages and lines of credits) and savings products. When the rate is low, it means that it is cheaper to borrow money, but not as lucrative to save.

The BoC has eight fixed dates each year on which it announces whether or not it will change the policy interest rate. The announcement dates are January 9th, followed by March 6th, April 24th, May 29, July 10, September 4th, October 30th, and December 4th.

Ottawa Condo Market Statistics - February 2019

Ottawa-Condo-Stats-and-Data.jpg

As we do every month, we have taken a closer look and broken down the sales data for the month of February 2019 for the top five "downtown" area's - Centretown, Byward Market and Sandyhill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment style condominiums, and only what sold through the MLS. Also, DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is almost every single transaction to be roughly 10-14 days.

Ottawa Condo Centretown - Statistics February.jpg
Byward Market & Sandy Hill - February.jpg
Little Italy - Stats.jpg
Hintonburg - Stats.jpg
Westboro - Stats.jpg

Do you have any questions about how this information affects your investment or looking for more information to make the best decision? Let’s chat! Fill out the form on the bottom of the page.

River Terraces 2 - Ground Breaking Sales Promotion + Sales Update

Ottawa Condo River Terraces-2-header-logo.jpg

The River Terraces Phase 2, by EQ Homes, is celebrating the start of construction with a “Ground Breaking Sales Promotion”. Only available until March 10th, or for the first three buyers of a one bedroom or one bedroom plus den, the first three buyers of a two bedroom or two bedroom plus den, or the first two buyers of a penthouse unit. The promotion includes a $10,000, $15,000, or $20,000 EQ Design Studio bonus (per unit size), with the penthouse buyer getting an additional parking spot included ($37,500 value).

Located in Old Ottawa East, just off Main street, The River Terraces Phase 2 consists of 96 units, ranging from 514 sqft (model 3* for $284,900) up to 2156 sqft (Model 36 for $1,799,900). The building is now 25% sold, with the sales team pointing out that the two bedroom units being quite well and the most popular. There is still a good mix of units available, for all price points and sizes. They are expecting an occupancy date of late 2020 or early 2021.

**For more information on The River Terraces Phase 2, visit our River Terraces Two page here.**

THE Buyers Guide To Condo Assignments In Ottawa

Guide-To-Buying-Ottawa-Condo-Assignments.jpg

If you are hunting for a condo in Ottawa, you might hear the term assignment, or that a condo is being sold as an “assignment”. While not a typical transaction, purchasing a condo assignment can be a lucrative way to get a great deal, or into a hot building that has no remaining inventory.

What is an assignment?

An assignment is a transfer by the original purchaser (the Assignor) of the original Agreement of Purchase and Sale (APS) to the new purchaser (the Assignee). This means that they are not selling or buying the actual condo, but rather they are selling or buying their interest in the deal. The new buyer (Assignee) is buying the ability to become the Assignor (original buyer). You often hear assignments referred to as selling “paper” or selling the deal. These can happen for any transaction, however in real estate the majority of times it is for either land assembly (buying numerous lots to create one large one - ie for building a condo development), or for single pre-construction condominiums. In Ottawa, it is rare for people to sell an assignment for a residential freehold (house) simply due to the lead time (only takes 6 months to build a house).

Why do condo assignments occur?

Condominium assignments typically occur for a few reasons. The first thing to remember is that condo units were typically first sold three to four years (or even longer) before the buyer could move in. Often, the original purchasers have had a change in circumstance and no longer want to continue with the purchase. a.k.a. partners, babies, pets, jobs, income, etc. The second reason we see often is that the original purchaser was a speculator who purchased with the intention of assigning the contract to profit from the increase in price or value.

Why can it make sense to purchase an assignment?

Hot building? Purchasing a condo assignment is a way to purchase a condo in a building that has no available inventory. It also is typically cheaper than purchasing the unit once the building has been registered and units are listed for resale. PLUS We have seen assignments that are priced lower than the similar unit that is available from the builder in the same project.

Plus you still have the benefits of buying brand new, such as being eligible for Tarion warranty program, pre-delivery inspections, etc. Compared to re-sale where you might have missed these opportunities.

Important things to know when looking to buy a condo assignment

1. You are buying a pre-construction condo and are taking on all of the risks. Delays, changes to occupancy, changes to the building, or even projects that flop and could be canceled. This also includes any interim occupancy payments. While it is the same risk as buying directly from the builder it is important to take note.

2. The original Agreement of Purchase and Sale (APS). When you are buying an assignment, you are replacing the original buyer, and you are taking on all of the terms, conditions, and obligations, that the original buyer agreed to. You are now fully responsible for the purchase. This can include terms that the original buyer might not have cared about, but they might matter to you. It is not possible to renegotiate the terms with the builder.

3. Builder Adjustments or Development Costs. In the original APS it will mention (often clause 6) the adjustments that will be charged by the builder on top of the purchase price. This is no different from buying directly from the builder, but not something you would deal with for a resale property. Usually, these can include development charges, education levies, park levies, initial contribution to the reserve fund, Tarion enrollment, HST on chattels, law society levy, builders solicitors confirmation of deposit letters, etc. These closing costs can easily amount to 1-3% of the original purchase price.

4. Capped Builder Adjustments. Often when purchasing a pre-construction condo from a builder you are able to negotiate and have the builders' adjustments capped (ex $5,000 or $10,000). It is important to know if the original purchaser had negotiated this. While it might seem like a no-brainer, most buyers are not aware it is possible and don’t even ask. Be aware that the cap might not be applicable to the assignee. Every deal and builder is different and this is constantly changing.

5. Deposit. Typically the original buyer (assignor) is looking to mirror the deposit that they have given to the builder. This can be 15% or 20%, which is held in trust until closing. Compared to a re-sale purchase where it can be significantly less. This often rules out assignments for buyers with a smaller downpayment. While this is negotiable between the Assignor and Assignee, it is standard and not typically lower than the original deposit amount.

6. Finishes and Upgrades. Depending on how far along you purchase the assignment, you might not be able to choose the finishes or any upgrades. If they have already been chosen, make sure you like what the Assignor picked out!

7. HST. HST with pre-construction condos can be a complicated beast. Every project can be different, however, it is up to the developer whether to give the HST rebate or have you apply directly to CRA. If the developer believes (or if the original purchaser said it would be for an investment), you will have to pay the HST on closing (and can apply for the rebate after).

8. Closing Costs. The closing costs can be slightly higher compared to a resale property. Legal fees are often higher since the deal is involving two transactions (acquiring the assignment, and the actual closing). Your lawyer should be able to break down the cost in advance.

9. Builder Approval. Every assignment is conditional upon the builder allowing the assignment to happen. Before the assignment is advertised, the assignor will ask the builder for permission. Many builders will not allow their original purchasers the ability to assign contracts. We have seen original APS that state that assignments are allowed, but then a schedule which declares they are not allowed! PLUS if the Assignor is given permission from the builder, there is typically a fee to allow them. We have seen this fee up to $7,000 plus the builder's legal fees of $2,000. While negotiable, this fee is typically the responsibility of the Assignor.

10. Your Team. Have the best team of professionals standing with you to make the purchase. Your lawyer and REALTOR should be experts.

Real estate transactions are complicated to begin with. On an average builder Agreement of Purchase and Sale there can be hundreds of clauses, dozens of schedules, and an endless amount of lawyer talk. The assignment process is more complicated and tricky, using paperwork, terms, and conditions, that doesn’t look anything like the usual APS for a resale condo. When you are looking at purchasing an assignment make sure you have a professional REALTOR well versed with condo assignments who can walk you through the entire process and ensure that you are well protected. If you are looking at buying a condo assignment in Ottawa, fill out the form below to chat!

Name *
Name

Corners On Main - Phase 1/2 - Sales Update

logo corners on main good.jpg

Domicile’s latest project, The Corners On Main, is nearing completion. All phase 1 units have all received occupancy (73 in total), with phase two occupancy beginning April 15th. Occupancy is scheduled for two units per day, which is slated to last until the middle of June.

There are only six units remaining in phase 2, with pricing ranging from $226,400 (375sqft Rosedale floorplan) to over $769,450 (1,552sqft Hopewell floorplan, includes parking).

The commercial tenants have also started being announced. Laurier Optical, Happy Goat Coffee, River Dental, and Walker Real Estate Group - are among the first to call the building home. No doubt, you will see an influx in commercial tenants to the area with the addition of the new residential buildings.

Looking for more information on Corners On Main, or pre-construction condos in Ottawa? Let’s chat!

Ottawa Condo Market Statistics - January 2019

Ottawa-Condo-Stats-and-Data.jpg

As we do every month, we have taken a closer look and broken down the sales data for the month of December 2018 for the top five "downtown" area's - Centretown, Byward Market and Sandyhill, Little Italy (which includes Lebreton Flats), Hintonburg, and Westboro. The information will be specific to apartment style condominiums, and only what sold through the MLS. Also, DOM (Day's On Market) is calculated to include the conditional period, which in Ottawa is almost every single transaction to be roughly 10-14 days.

Ottawa Condo Centretown - Statistics January.jpg
Ottawa Byward Market & Sandy Hill Condo - Stats January 19.jpg
Ottawa Condo Little Italy - Stats January 2019.jpg
Ottawa Condo Hintonburg - Stats January 2019.jpg
Westboro Condo Ottawa - Stats January 2019.jpg

Do you have any questions about how this information affects your investment or looking for more information to make the best decision? Let’s chat! Fill out the form on the bottom of the page.

Claridge Moon/District/Royale - Coming 2019

Claridge-Moon-Banner-Logo-Ottawa-Condos-For-Sale.jpg

2019 is shaping up to be the “Year of Claridge”. Aside from Claridge Icon that is under construction, Claridge is getting set to launch three new condo projects in 2019.

Claridge-Moon-Rendering-Ottawa Condo For Sale.jpg

Claridge Moon is going to be located at Queen at Albert, located at the Lyon LRT Station. A three tower development consisting of a 26 storey rental building, 25 storey condo building, and a nine storey tower for rentals. The condo tower name “Claridge Moon” will consist of 229 units. No idea of pricing or sizing at this time. For more information on Claridge Moon, visit our page here, which has all of the renderings and up to date information as it becomes available.

Claridge District is going to be located at 91 Nepean and will be “move-in ready” condos. Not much information at this time.

Claridge Royale looks to be the most exciting. Located in the Byward Market, Claridge had purchased the Metro Grocery site (at 245 Rideau street at Cumberland) a number of years ago which at the time started quite a bit of talk about what exactly they would do with it. The project will consist of three towers (28, 26, and 19 floors) that includes a condo tower, hotel, and most likely a rental building. We are hearing that the Metro will continue to be a tenant in the building (once completed) as well as the possibility of a Canadian Tire on the second floor. For more information on Claridge Royale, visit our page here, which contains all of the renderings and up to date information as it becomes available.

Looking to purchase a pre-construction condo in Ottawa? Want some guidance in navigating which project best fits what you are looking for? Fill out the form at the bottom of the page to chat.