The Ottawa New Condo Owners Thread

[333fun555]

Originally Posted by Tor2Ott

Thanks Fun. I heard that the building can be registered once a certain percentage of people move in. If that's the case, there's a chance that people move in after the building's registered, so no need to pay "rent", correct?

I am not sure about percentage, could be 90%. There is a good chance that you won't have to pay INTERIM OCCUPANCY FEES, but nobody can guarantee it I have heard that Charlesfort is good with that, it takes 3-4 months to register the condo once they start moving people in.

[YOWetal]

Originally Posted by 333fun555

I am not sure about percentage, could be 90%. There is a good chance that you won't have to pay INTERIM OCCUPANCY FEES, but nobody can guarantee it I have heard that Charlesfort is good with that, it takes 3-4 months to register the condo once they start moving people in.

To be clear to anyone reading this thread, if you move in 3-4 months before it is registered than you will have to pay interim occupany fees. It can also take some time after enough people move in and the application is filed, to get it finalized from the city and actually allow everyone to close. The lower the floor and hence the earlier you move in the longer this period will be.

[Etoile]

Hey HPers,

Same thing just different wording. The interest rate used to calculate your interim occupancy is the % on your bank pre-approval . You will get a credit when you close for the lower interest rate from teh rate you paid to the new rate (if it is lower most cases now will be lower) so when I close they will credit me the difference between the interest rate I paid and the final interest rate (lower rate in this case) for occupancy fees /rent. Some call it rent because in fact you don't own officially, you are renting from the builder as it is still officially the builders property. You pay rent /or occupancy fees from your move in date until property is declared a condo = closing date (when approx 90% occupied) once they declare it a condo then you become the official owner and the closing occurs to finalize the sale and then you can toast to your ownership!



I saw on line today a rate of 3.25 % variable

Etoile

[YOWetal]

Originally Posted by Etoile

Hey HPers,

Same thing just different wording. The interest rate used to calculate your interim occupancy is the % on your bank pre-approval . You will get a credit when you close for the lower interest rate from teh rate you paid to the new rate (if it is lower most cases now will be lower) so when I close they will credit me the difference between the interest rate I paid and the final interest rate (lower rate in this case) for occupancy fees /rent. Some call it rent because in fact you don't own officially, you are renting from the builder as it is still officially the builders property. You pay rent /or occupancy fees from your move in date until property is declared a condo = closing date (when approx 90% occupied) once they declare it a condo then you become the official owner and the closing occurs to finalize the sale and then you can toast to your ownership!



I saw on line today a rate of 3.25 % variable

Etoile

Good explanation Etoile, except in Ontario the Interim Occupancy interest rate is now prescribed by law in the Condominium Act. It is the average of the major banks posted 1 year conventional mortgage rate as reported by the Bank of Canada. Currently 4.5% (beginning with April occupancies) March occupancies will use rate in effect on March 1 which was 5%. You also need to pay estimated Municipal taxes and condo fees of course.

[Etoile]

Thanks and thank you for the little bits I missed I did not know that about the rate and how they calculate it. The simplist way for me to understand the interim occupancy it's a lump sum rent, including condo fees, and taxes until the unit closes.

Etoile

[Tor2Ott]

Hey guys, thanks for the info. I was talking to Charlesfort this morning, and they expect the building to be registered at the end of this month or early next month. Good news for me if that's the case.

[333fun555]

Originally Posted by Etoile

Thanks and thank you for the little bits I missed I did not know that about the rate and how they calculate it. The simplist way for me to understand the interim occupancy it's a lump sum rent, including condo fees, and taxes until the unit closes.

Etoile

…The monthly occupancy fee will be the total of interest calculated on a monthly basis on the unpaid balance of the purchase price at the prescribed rate, plus an amount reasonably estimated by the Vendor on a monthly basis for municipal taxes attributable to the Unit, plus the projected monthly common expense contribution for the Unit as set out in the Vendor’s fist-year budget for the proposed condominium corporation included in the disclosure package…

http://www.cklegal.ca/doc/OCCUPANCY_FEES_MAR2007.pdf

[333fun555]

Originally Posted by Tor2Ott

Hey guys, thanks for the info. I was talking to Charlesfort this morning, and they expect the building to be registered at the end of this month or early next month. Good news for me if that's the case.

That is a good news When is your move in date???

[Tor2Ott]

That is my million-dollar question. They weren't able to provide a firm date. Estimate would be mid to late May. That could mean August.

[333fun555]

Originally Posted by Tor2Ott

That is my million-dollar question. They weren't able to provide a firm date. Estimate would be mid to late May. That could mean August.

Is it because of the kitchen cabinets???

[Tor2Ott]

The kitchen cabinets arrived for the 14th floor. They are seeing cabinets arriving 1-2 weeks per floor. Occupancy date is 4 weeks afterwards. So looks like end of May for me, provided there won't be any more cabinet fires. Just in time for rooftop BBQ.

[Etoile]

Hello everyonel,

Closing sooner than later is actually good news for everyone, builder and owners.

The owners are better off making a mortgage payment than paying Interim Occupancy fees, and I would guess the builder is always happy to get the big bucks from their purchasers so they can go forward on other projects and or do whatever it is they do with their $

The one benefit I can see to a delayed closing is the mortgage rates may go down even more at this time. I'm inquiring with a mortgage broker today and the best rate I got quoted is 4.10 % at Alterna credit on a 5 year fixed union and 3.25 on variable with Desjardins credit union. These are rates I will go to my bank with and ask them to do better.

I have not heard from my lawyer yet on my closing, I'll certainly let you know when I do.

[Etoile]

Originally Posted by Woofer

All of us have valid opinions as to whether or not it is worth buying or renting condos or houses. And I think it boils down to our own experiences and needs.

I always hate to harp on living in Vancouver, but case in point: I bought a condo in Vancouver before the market took off with a 50K down payment in 2001. In 2007 when I sold the condo, my 50K downpayment had grown to 250K. Combination of luck, good timing, and fortune. I take absolutely no credit in this good luck, but I do know if I had invested that same 50K in a GIC, stock or bond, it wouldn't have increased that much, in fact, with the current crash, it most likely have been worth less.

All this to say is that when it comes to "investing" money in real estate, really, its the luck of the draw. Or being St. Patrick's Day today, the luck of the Irish.

Here's hoping my "investment" in HPI will be a second charm.

Etoile

I concur Woofer, there is no other venue where you can make the kind profits you speak of but in real estate. Vancouver is one the top cities with prices to go with it. I bought and sold here in Ottawa recently that was less than 2 years old and sold it for 30K more (minus 10k of which went to real estate agent) I did great I feel and this was my first stab in real estate, where and how else can you make this kind of money on an investment, and all of this was just prior to the economic downfall otherwise it would have more. It amazes me, and I'm still amazed and wonder why I did not do it sooner, probably because I was travelling a lot and moving from Province to Province so to me buying wasn't veen a thought. In Vancouver you need to have a lot more $ behind you cause the prices are sky high especially downtown, I can't imagine how much an HP unit would cost if it was in YVR...scary thought!

Again it's a personal choice, rent, buy, condo, house, downtown, suburbs, etc etc. I have to say I'm liking the odds and the value of my investment is sure to go up, property, location, timing and a great real estate agent, and maybe a little luck :-)

[p_xavier]

I finally put an offer on a new condo! I'm excited. Delivery December 2010. It's so funny, because you actually get to go into the building and select which view you'd like. I found it an unique experience.

So I bought a 950sf unit. There are no upgrades, everything's included, as well as the euro appliances. Was really neat.

www.thewilson.ca

[YOWetal]

Originally Posted by Etoile

Etoile

I concur Woofer, there is no other venue where you can make the kind profits you speak of but in real estate. Vancouver is one the top cities with prices to go with it. I bought and sold here in Ottawa recently that was less than 2 years old and sold it for 30K more (minus 10k of which went to real estate agent) I did great I feel and this was my first stab in real estate, where and how else can you make this kind of money on an investment, and all of this was just prior to the economic downfall otherwise it would have more. It amazes me, and I'm still amazed and wonder why I did not do it sooner, probably because I was travelling a lot and moving from Province to Province so to me buying wasn't veen a thought. In Vancouver you need to have a lot more $ behind you cause the prices are sky high especially downtown, I can't imagine how much an HP unit would cost if it was in YVR...scary thought!

Again it's a personal choice, rent, buy, condo, house, downtown, suburbs, etc etc. I have to say I'm liking the odds and the value of my investment is sure to go up, property, location, timing and a great real estate agent, and maybe a little luck :-)

Of course if you time it wrong:

Yaletown condo developer offers steep discounts
DOMINIQUE ARMAND FOR METRO VANCOUVER
March 17, 2009 05:17

A developer in Yaletown is offering buyers discounts on condos of at least 22 per cent, including those already sold.

The Beasley, a 33-storey, 221-unit condominium by Amacon, is 65 per cent sold.

Cameron McNeil, president of MAC, the firm marketing the development at Homer and Smith streets, said the initiative called Pass It On Campaign came about after months of exploring reduced construction costs.

“We are in a very different market than a year ago,” McNeil said. “When we negotiated our construction cost and realized the savings we made we were happy to pass on those savings to our purchasers.”

Tsur Somerville, a professor of real estate finance at the University of B.C. Sauder School of Business, said there are usually two reasons why developers give discounts to pre-sale buyers.

“One is not to piss people off,” he said. “If you bought an unit pre-sale and they’re now selling (comparable units) for a lower price (the developer) will have an issue with the people already there.”

Somerville said that when pre-sale buyers “have found a way to walk away from their contracts” developers also have reason to offer incentives.

The Beasley is expected to be completed by July 2012. Outstanding inventory will be available on April 4 with units starting at $219,900.

[waterloowarrior]

Congrats d_jeffrey ! I'd love to live in that area and the buildings looks really nice too

[p_xavier]

Originally Posted by waterloowarrior

Congrats d_jeffrey ! I'd love to live in that area and the buildings looks really nice too

Thanks! I'll have to rent for a while, but I'm actually enjoying it since I'll be able to save my money. With prices going down, I don't feel like I'm missing anything by not buying now. It gives me also the possibility to stay in Ottawa until my condo is ready. I'll think about that.

I wanted to buy at McGill Ouest, which is the same builder as East Market and Mondrian, but they really did a bad job. The finishings are low quality, and you got a view on a parking lot. When I visited, the first and second floor just had flooded!

[Tor2Ott]

Originally Posted by d_jeffrey

Thanks! I'll have to rent for a while, but I'm actually enjoying it since I'll be able to save my money. With prices going down, I don't feel like I'm missing anything by not buying now. It gives me also the possibility to stay in Ottawa until my condo is ready. I'll think about that.

Hey congrats d_jeffrey!

But I don't understand the above. You said you put down an offer, doesn't that mean you're buying it? If prices do go down, and you are obligated to your offer price, you're still affected, right?

[p_xavier]

Originally Posted by Tor2Ott

Hey congrats d_jeffrey!

But I don't understand the above. You said you put down an offer, doesn't that mean you're buying it? If prices do go down, and you are obligated to your offer price, you're still affected, right?

Yeah I did, but moving date is nearly 2 years away. I had a good price, I'm satisified with it. I was more talking about buying something that is just built, which is usually more expensive. When you buy early in a project, you save money.

[p_xavier]

Anyways, here's the building, yes it was abandonned for a couple of years. I bought on the fifth (last) floor. They use the French numbering, where the ground floor is the Rez-de-chaussée, and the second floor is the first floor.