What are Caps and Levies? Caps and Levies refer to the development charges that will be paid the purchaser on a preconstruction condo unit. Without going in to all of them in detail the city requires the developer and purchasers to pay a portion of the infrastructure costs for building new buildings. These go to fund transit, education, libraries and schools and a are a major revenue source for the city. For more information you can visit the City of Toronto to learn more, but the key question as a purchaser is what will it cost you?
Levies are paid at the time of closing on the property. Since the levies in 2023 for example are not established today developers will often limit the purchaser’s exposure by “capping” them at specific prices to give purchasers a good idea of what their closing costs will be. Since the levies on a two bedroom are a higher than those on a one bedroom. Caps may be $6500 on a one a bedroom and $8500 on a two bedroom. As top agents, we are able to save our clients thousands by negotiating lower caps and we often do that before we sell you the unit. Your lawyer should be able to give you a better idea about caps on the unit.
For years REITs, pension funds and other institutional investors understand that student housing close to colleges and universities provide a consistent high performing investment. The proposition is simple, buy near a major post secondary institution and rent to students who require accommodations.
The average Toronto area re-sale home price rose 1.7 per cent year over year in January to $748,328, including single-family homes and condos, according to the Toronto Real Estate Board (TREB), which is forecasting a 4 per cent annual price increase for 2019.
Looking for a pad within walking distance of Toronto's subway system? Good call. You'll get around the city a lot cheaper and faster than you would by taking a car—you just may have to pay a bit more for your home upfront.