A tale of two condos
In 1973, I bought my first condo. My buying choice was between two new condominium
developments: PCC # 26 at 1615 & 1625 Bloor Street East in
Mississauga and YCC # 82 at 4645, 4673 & 4689 Jane Street.
At both sites, a two-bedroom unit with two-bathrooms cost $17,000. I picked the Mississauga location and I lived there in bliss for nine years.
When I sold my unit, I got $27,000. That worked out to be an average annual compounded increase of 6%. Not bad; not bad at all.
1615-1625 Bloor St. W. Mississauga
Recently I drove by PCC # 26 and saw that it still looks as good as it
did forty-two years ago. I have also drove past YCC # 82 and was
shocked how depressing it looks.
Both started equally so how do the two condo corporations compare?
Two-bedroom units at PCC # 26 now sell
for $225,000, a price that is steadily creeping higher. Incredibly, that condo corporation has managed to
continue to appreciate at compounded 6% per year over the last 42 years.
What about YCC # 82?
A unit that went for $17,000 in 1967 now sells for
approximately $40,000 on power of sale. There seems to be a lot of power of sales. That works out to be an average annual
compounded increase of 2%. Pretty grim.
How do those prices stack up?
In 1973, a condo unit in both corporations cost approximately ten times the price of
a new Toyota Corolla. Today, you can buy eleven basic Toyota Corollas for the
price of a unit at PCC # 26 and only two Toyota Corollas for the selling price
of a unit at YCC # 82.
So one condo corporation retained 110% of its original value, after
accounting for inflation, and the other has retained 20% of its
What's the lesson here?
Buy a unit in a smaller condo corporation rather than a large one. Keep informed of
what is going on in your condo. Read the AGM package and attend the meetings. If everything is going
well, bask in your good fortune.
When it looks like your condo is neglecting maintenance, you have
many rental units, there is political infighting among different
factions, there is a constant turnover in property management
companies, selling prices have stagnated, or all of the above; get out before the roof caves in. Cut
your losses early before the condo drags you down with it.
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