TORONTO CONDO HOTEL
At the Downtown Plaza condo hotel in Toronto, Canada,
who will pay maintenance in the guaranteed rental
The owner. He pays for everything except your debt
the buyer doesn't choose the guaranteed 6% rental
plan, how will rental income be divided between the
owner and management?
A: All revenue for the property will
be pooled together so that each member will get an
equal share on a pro rata basis.
How would you get financing from the U.S. for the
Canadian condo hotel?
My lending source says that
it is probably not going to be possible. He suggested
dealing with any of several Canadian banks. My sales
consultant at the property said that Canadian banks
are financing these purchases, but may request 35-40%
cash down. This is obviously higher than the 25% required
by the developer, as per the contract. Of course,
when you factor in the conversion rate of money, it
is more like 30% cash down US.
are the terms for payment of the 25% deposit?
of the purchase price is due at the signing of the
contract. There is a 10-day rescission period. (This
is shorter than the 15 days buyers have for properties
that are located in Florida). After the 10 days pass,
the first 1% is considered at risk, and an additional
1% is due at the beginning of each month for the next
Q: What are
the yearly proposed taxes on these condo hotel units?
In the worst possible scenario, it will be $4,000
per suite regardless of the size. In the best case
scenario, which may be unlikely, it will be 1.2% of
the assessed value, which is typically 60% of the
When will construction begin on this Toronto condo
hotel and when will the building be complete?
2005 construction begins, and two to three years from
that point, depending on how the winters affect the
construction schedule, the property will be completed.
The above question(s) were submitted
via e-mail by a visitor to www.condohotelcenter.com.
The answer was prepared by Joel Greene, a licensed
real estate broker with Condo Hotel Center which specializes
in the sale of condo hotel units and fractional ownerships
in private residence clubs.