"Cost-Effective" Condos Cheaper than Rental

One developer has found a way to build condos at $60,000 less than it costs the average Toronto developer. Through deferrals from the city, money is made available to assist homebuyers with their down payments.
February 18, 2009, 8am PST | Judy Chang
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"The practice enables Options to sell family homes to people who might otherwise find it difficult to rent apartments of the same size.

'I can take a two-bedroom unit that would sell for $220,000, and put somebody in it who only has to carry a mortgage of $100,000,' Labbé said.

'This enables a single parent with an income of $35,000 the own her own home,' he said.

'Now, in every building we do, if we can get those minor concessions, we can do 25 per cent income-related ownership and 75 per cent low end of market ownership. And there's no limit to the size of community we can build at that ratio. We could do a 5,000-unit neighbourhood.'"

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Published on Tuesday, February 17, 2009 in The Tyee
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