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By: Toronto Condo Boutique & TalkCondo

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© Copyright 2012, Toronto Condo Boutique & TalkCondo. All rights reserved. No part of this book may be reproduced in any form, by any means (including electronic, photocopying, recording or otherwise) without the prior written permission of the publisher.

Published by:

Toronto Condo Boutique & TalkCondo Toronto, Ontario http://www.torontocondoboutique.com http://www.talkcondo.com

© Copyright 2012 Toronto Condo Boutique & TalkCondo. All rights reserved. Reproduction, in whole or in part, without written permission is prohibited and a violation of International copyright law. HARBOUR PLAZA - SNEAK PREVIEW PACKAGE | 3

TABLE OF CONTENTS

INTRODUCTION

Ø Meet The Team

CHAPTER 1 - Condo IPO CHAPTER 2 - Platinum Investing CHAPTER 3 – About The Neighborhood

Ø Introducing "SOUTH FINANCIAL CORE" Ø High Appreciation & Rental Rates Ø The Harbour Plaza Project

CHAPTER 4 – TOP 8 REASONS TO INVEST

Ø #1 – Waterfront Toronto Revitalization Ø #2 – The Pricing - Aggressively Priced Ø #3 – Menkes - An Award Winning Developer Ø #4 – “Developer-Driven Appreciation™” Ø #5 – The Location – 10,000 New Jobs & Access to Amenities Ø #6 – Long Occupancy - May 2018 Ø #7 – Iconic Architecture & Landmark Building Ø #8 – Exclusive VIP Incentives

CHAPTER 5 - NOTES

Ø About This Report

Meet The Team

Toronto Condo Boutique and TalkCondo are a team of Platinum agents in the Toronto Condominium Market. Our team is involved in a large number of condominium transactions every year, and as a result are able to get EXCLUSIVE incentives for buyers.

We represent YOU – the BUYERS and INVESTORS – NOT developers....but it is the developers that pay our commissions, so it is like we work for you at no cost!

Our ‘niche’ is to provide buyers with the BEST ACCESS to the hottest projects in Toronto – to obtain the LOWEST possible pricing, the MOST opportunity for appreciation, and the BEST Suite selection.

The team are highly regarded in the industry and have been interviewed by various media outlets including the Toronto Star, Globe & Mail and Moneyville. Roy Bhandari was recently invited by RealNet Canada to speak to 350 industry professionals about the pre-construction condominium industry alongside the George Carras (President of RealNet) and Jim Ritchie (VP of Tridel Developments).

Over the past 12 months alone, we’ve helped hundreds of clients get ‘in’ to hot new projects – which has helped them already see their units appreciate quickly...many of which have seen increases of $40,000 - $50,000 in less than12 months (some within weeks)!

(Top: Roy Bhandari invited to speak to 350 industry professionals alongside George Carras (president of RealNet), Jim Ritchie (VP of Tridel) among others. 2nd Row Left: Roy Bhandari, Giovanni Marsico & Susan Toughlouian awarded "Presidents Club" Award for Top Sales at Baker Real Estate alongside Barbara Lawlor 2nd Row Right: Giovanni Marsico & Roy Bhandari alongside Brandon Frankfort and Brian Brown of Lifetime Developments at a Platinum Appreciation Event. Middle Left: Susan, Roy & Giovanni winning award for Baker Real Estate. Middle Right: Roy, Amit & Giovanni awarded top agents for INDX Condominiums. Bottom Left: Susan and Giovanni winning their “Top Producing Agent” award for Chaz on Charles. Bottom Right: Winning “#1 Agents” at River City Award)

CHAPTER 1 – THE CONDO I.P.O.™

As you know, in the equities market, an Initial Public Offering (aka “IPO”) or Stock Market Launch is the first sale of stock by a private company to the public.

The purpose of the IPO (and in becoming a publicly traded company) is to raise capital for future growth and to create exposure for the business.

Similar to the stock market, the Toronto Condo market also has IPO’s or New Project Launches.

Strict banking rules dictate that a developer must pre-sell 65-80% of units in a new condominium project BEFORE receiving construction financing.

Before the first shovel hits the dirt, a developer has to sell out the majority of the condo units in the project!

This is why developers rely on the broker and agent community.

STAGES OF A NEW CONDO LAUNCH

There are different stages to a Condo IPO. While the stages vary from project to project and from developer to developer, many of Toronto’s top developers follow a similar structure.

At each stage of the sales process, there is typically a price increase in the value of the units, creating a process we’ve called ‘Developer-Driven Appreciation™’ that we will cover in a future chapter.

A typical new condo launch will have the following stages:

STAGE DESCRIPTION

PLATINUM First round of selling, lowest possible pricing. Investors purchase with a ‘Platinum Agent’. A Platinum Agent is a high-volume broker or sales representative who has the best relationships with condo developers. Platinum Agents typically sell 10 or more units in a project (sometimes as much as 50 units). These units are usually ‘allocated’ in advance. Typically 10-15 Platinum Agents in a given project.

VIP A VIP Agent is a broker or sales representative that has sold a unit or multiple units for the specific developer in the past. A typical project launch will have anywhere from 50-300 VIP agents. These agents will NOT have units allocated to them in advance. GENERAL AGENTS Once the VIP stage is over, the developer will open its doors to all brokers and sales representatives. Again, prices are typically raised for this new phase of selling. Individual investors and buyers, however, are still not permitted to walk in and purchase without the representation of a broker or agent.

PRE- At the start of sales, the developer will typically launch a website REGISTRATION for the project (i.e. – ABCcondos.com). The website will provide very limited details, and include a ‘registration form’ for individual investors and buyers. It is usually during this phase where individuals are asked to come in and purchase, providing them priority over the general public.

PUBLIC GRAND By this phase, the developer will have started their major ad OPENING campaign, creating awareness for the project to the general public. This is often accompanied by a ‘Grand Opening’ event, where the public is invited to come in and purchase.

CHAPTER 2 – PLATINUM INVESTING™

PLATINUM INVESTING DEFINED

When we say ‘Platinum Investing’, we’re not talking about trading in precious metals.

As mentioned in Chapter 1, Platinum Investing is when an investor purchases a pre- construction condominium unit from a developer during the ‘Platinum Phase’ of sales, through a Platinum Agent.

No matter where you decide to invest, the best TIME to invest is right at the start of the project, during the Platinum stage.

Here’s why…

During the sales cycle for a new condo, typically lasting 3-5 years, a developer will raise prices several times.

If you purchase a unit, say $350,000, during the Platinum Stage, that same unit could be selling for $380k, $390k, $400k, or even more by the time the building starts construction.

Therefore, the person spending $380k or more (compared to the Platinum investor spending $350k on the same model) is always at a disadvantage – either when it comes time to sell, as their profit margins will be less, or at time to rent, as their carrying costs will essentially be more.

Investing during this first round of selling provides you with the greatest advantage and leverage.

DEVELOPER-DRIVEN APPRECIATION™

2 TYPES OF APPRECIATION

When you purchase during the platinum phase, you benefit from 2 types of appreciation – the traditional, “market-driven” appreciation, and the second form, which we’ve labeled “Developer-Driven Appreciation”.

WHAT IS ‘DEVELOPER-DRIVEN APPRECIATION?

When you purchase a unit during the first (‘Platinum’) phase of developer pricing, you benefit the most from the developer raising prices at various points during the sales cycle (for example, at the VIP launch, agent launch, grand opening to the public, at the start of construction, etc.)

DEVELOPER-DRIVEN APPRECIATION EXAMPLE – THE BOND CONDOS

One of top developers in Toronto is Lifetime Developments, releasing highly successful projects such as The Bond, INDX, Karma, M5V, Victory, Bisha Hotel and Residences, The Yorkville, and more.

On September 1, 2011, Lifetime launched sales to our team and to a small group of other Platinum Agents for their project called ‘The Bond Condos’ located on Adelaide Street West.

We have attached (below) a sample of the starting (Platinum) prices from September 1st, along with prices for VIP agents released on September 22nd.

PLATINUM PRICES – SEPTEMBER 1st

VIP AGENT PRICES – SEPTEMBER 22nd

The B859 model increased in price by $60,000, and the B677 model had an increase of almost $70,000 - in just 3 weeks!

This is an example of ‘Developer-Drive Appreciation’, and one of the benefits of working with a Platinum Agent.

DEVELOPER-DRIVEN APPRECIATION EXAMPLE – PETER STREET CONDOS

Another top developer in Toronto is CentreCourt Developments.

At the end of April, 2011, CentreCourt launched sales to us and to a small group of other Platinum Agents for their project called ‘Peter Street Condos’.

The following chart shows the pricelist for units during the Platinum Price at the start of May, and then VIP prices from May 18th – along with the price increase for each model.

Price Suite Name Size Suite Type View Platinum Price VIP Price Increase (01) Sports 506 506 1B N $299,400.00 $334,900.00 $35,500.00 (02) Art 329 329 STUDIO N $216,400.00 $235,900.00 $19,500.00 (03) Fashion 607 607 1B+S N/E $354,400.00 $371,900.00 $17,500.00 (05) Sports 483 483 1B E $294,400.00 $309,900.00 $15,500.00 (06) Theatre 610 610 2B S/E $392,900.00 $425,900.00 $33,000.00 (07) Sports 475 475 1B S $324,900.00 $355,900.00 $31,000.00 (08) Sports 520 520 1B S $337,900.00 $361,900.00 $24,000.00 (09) Theatre 741 741 2B S/W $434,900.00 $485,900.00 $51,000.00 (10) Sports 482 482 1B W $288,900.00 $304,400.00 $15,500.00 (11) Theatre 772 772 2B N/W $437,900.00 $448,900.00 $11,000.00 (12) Fashion 609 609 1B+D N $353,900.00 $380,900.00 $27,000.00

PETER STREET CONDOS PRICE COMPARISON

Peter Street Condos was one of the best selling projects of 2011. As of writing for this book, there are less than 10 units left for sale in the entire project.

DEVELOPER-DRIVEN APPRECIATION EXAMPLE – KARMA CONDOS

In October 2011, Lifetime and CentreCourt partnered to release the uber-successful Karma Condos at Yonge and College.

At Karma, we sold the 33rd floor. The following chart shows the pricelist for units on the 33rd floor during the Platinum Stage, and then VIP prices from a few weeks later (adjusted for the 33rd floor):

KARMA CONDOS PRICE COMPARISON

Platinum Suite Name Size Suite Type View VIP Price Price Increase Price K-490 490 1 BED NORTH $337,900.00 $372,900.00 $35,000.00 K-536 536 1 BED + DEN SOUTH $382,900.00 $424,900.00 $42,000.00 K-540 540 1 BED + DEN SOUTH $382,900.00 $424,900.00 $42,000.00 SOUTH K-689 689 2 BED $487,900.00 $507,900.00 $20,000.00 EAST NORTH K-729 729 2 BEN $477,900.00 $518,900.00 $41,000.00 EAST NORTH K-803 803 2 BED + DEN $522,900.00 $557,900.00 $35,000.00 WEST SOUTH K-819 819 2 BED + DEN $546,900.00 $586,900.00 $40,000.00 WEST

PLATINUM CASH FLOW CASE STUDY

Taking the THEATRE 741 and FASHION 609 models above from Peter Street Condos.

Let’s do some math to explain why it is vital to purchase during the Platinum Phase of a new condo launch.

We’re going to compare the purchase of this unit during the Platinum Phase, VIP Phase, and then at closing (i.e. – if an investor purchases the unit when the building is ready in 4 years).

VARIABLES AND ASSUMPTIONS

a) Maintenance is at $0.53 per square foot (as per developer) b) Taxes estimated at 1% of purchase price annually c) Rent – rentals in the area TODAY are between $2.80/sqft to $3.50/sqft, so we’re going to assume that in 4 years the rental figure for this project will be $3.50/sqft d) The mortgage equation used is for a 5 year fixed term, 30 year amortization, paid monthly e) The ‘Resale’ amount at closing is based on a conservative 4% annual growth (the average appreciation for pre-construction over the past 30 years has been 7-8%) f) Occupancy is slated for 4 years from the start of sales

We’re going to analyze cashflow for each Phase (Platinum, VIP, and Resale/Closing) based on a 4% and 5% mortgage rate.

The 4% amount is based on current mortgage rates – i.e. – RBC, TD, and CIBC are currently offering 4.04% on 5 year fixed mortgages.

The 5% rate is to examine the effect of an increase in rates to the cashflow of each phase.

THEATRE 741 MODEL PURCHASE STAGE PLATINUM VIP RESALE PURCHASE PRICE $434,900.00 $485,900.00 $568,434.27 25% DEPOSIT $108,725.00 $121,475.00 $142,108.57 MAINTENANCE $392.73 $392.73 $392.73 TAXES $362.42 $404.92 $473.70 MTG AMOUNT (80%) $326,175.00 $364,425.00 $426,325.71

4% Mortgage RENTAL INCOME $2,593.50 $2,593.50 $2,593.50 MINUS MORTGAGE $1,551.03 $1,732.91 $2,027.26 MINUS MAINTENANCE $392.73 $392.73 $392.73 MINUS TAXES $362.42 $404.92 $473.70 CASHFLOW $287.32 $62.94 -$300.19

5% Mortgage RENTAL INCOME $2,593.50 $2,593.50 $2,593.50 MINUS MORTGAGE $1,740.77 $1,944.91 $2,275.27 MINUS MAINTENANCE $392.73 $392.73 $392.73 MINUS TAXES $362.42 $404.92 $473.70 CASHFLOW $97.58 -$149.06 -$548.20

RESULTS:

With today’s mortgage rates, an investor will have positive cashflows from rent IF they purchase during the Platinum Phase, or VIP Phase – however – there is a $225/month difference!

If mortgage rates go up to 5%, you will ONLY have positive cash flow if you purchased during the Platinum Phase. This provides the Platinum Investor with an unfair advantage.

FASHION 609 MODEL PURCHASE STAGE PLATINUM VIP RESALE PURCHASE PRICE $353,900.00 $380,900.00 $445,599.13 20% DEPOSIT $70,780.00 $76,180.00 $89,119.83 MAINTENANCE $322.77 $322.77 $322.77 TAXES $294.92 $317.42 $371.33 MTG AMOUNT (80%) $283,120.00 $304,720.00 $356,479.30

4% Mortgage RENTAL INCOME $2,131.50 $2,131.50 $2,131.50 MINUS MORTGAGE $1,346.29 $1,449.01 $1,695.13 MINUS MAINTENANCE $322.77 $322.77 $322.77 MINUS TAXES $294.92 $317.42 $371.33 CASHFLOW $167.52 $42.30 -$257.73

5% Mortgage RENTAL INCOME $2,131.50 $2,131.50 $2,131.50 MINUS MORTGAGE $1,510.99 $1,626.27 $1,902.50 MINUS MAINTENANCE $322.77 $322.77 $322.77 MINUS TAXES $294.92 $317.42 $371.33 CASHFLOW $2.82 -$134.96 -$465.10

RESULTS:

Results are similar for this model.

NOTE - If the VIP or Resale investor charged MORE for rent in an effort to try and break-even, the Platinum Investor could either charge more (and make more cashflow) or charge the same creating more demand for their unit.

The Platinum Investor still has the upper hand.

PLATINUM VS. VIP - RETURN ON INVESTMENT COMPARISON

Taking the Theatre 741 model again…

If the Platinum and VIP investor decide to sell their units at closing, based on the resale value above of $568,434, the Platinum Investor will have gross profit of roughly $133,000 while the VIP Investor will only have gross profit of roughly $82,000!

The Platinum Investor could sell for $20-30,000 under market value and still realize more profit than the VIP Investor!

CHAPTER 3 – ABOUT THE NEIGHBORHOOD

1.1 - Introducing "South Financial Core"

The South Financial Core is a budding new location for office towers and is quickly becoming Toronto's new "financial district".

The South Financial Core is expected to add 10,000 additional new jobs by the time Harbour Plaza is ready with the addition of brand new office towers.

RBC (at RBC WaterPark Place) and Price Waterhouse Cooper (at 18 York) will be joined by a brand new office tower at 1 York (Menkes) and will bring an additional 2 million square feet of prime, high quality office space into the neighbourhood.

In addition, the Waterfront Revitalization (a world class waterfront street that will be completed in 2014, explained in more detail below) and Union Station Revitalization will continue to improve this location.

1.2 - High Appreciation & Rental Rates

The condominiums we researched that we felt were similar in suite finishes and amenities to Harbour Plaza were Maple Leaf Square located at 55 & 65 Bremner. Maple Leaf Square has only been registered for a short time, however, based on additional data from pre-sales we were able to determine that these condominiums have been appreciating at approximately 8-10% per year.

This is an incredible number and above average for the GTA. At 10%, a $300,000 condominium that you purchase today will increase to $330,000 next year, and $363,000 the year after. In addition, if your property increases at 10% per year, it would take just 7 years for your property to DOUBLE in value!

Maple Leaf Square also boasts some of the highest rental rates in Toronto, with suites renting between $2.90-$3.40 per square foot (this means that a 500sq.ft. suite would rent for between $1,450-$1,700 per month based on the averages).

It is important to note that these rental rates are based on TODAY's Market, and Harbour Plaza will not be closing for another 5 years! With rental shortages, it is widely expected that the rental rates will continue to grow in Toronto.

This makes Harbour Plaza an excellent option as an investment whether you are interested in "flipping" or renting for potential cash flow.

1.3 - The HARBOUR PLAZA Project

Harbour Plaza represents an incredibly unique project that will be home to not one or two towers, but THREE towers. Two towers (62-storey and 66-storey will be dedicated to housing approximately 1,200 condominium suites along-with a wealth of amenity space.

DIRECT PATH ACCESS: One of the BIGGEST amenities will be an all-weather protected, heated and air-conditioned Sky-bridge providing DIRECT PATH ACCESS!

The third tower will be a commercial tower featuring an incredible 800,000 ft of brand new office space - it’ll also be home to Health Care of Ontario Pension Plan (HOOPP) who have already been named as head tenants.

The location of Harbour Plaza will allow for some incredible views of the entire City

Image of the incredible indoor pool along-with the pool-side resort style seating

AMENITIES

Harbour Plaza will feature some incredible selections of amenity space including a state-of-the-art gym, indoor pool, pool-side resort style seating, steam rooms, outdoor terraces, games room, and expansive outdoor areas.

FLOORPLANS

High quality floorplans are of utmost importance when looking at a condominium project. Bad floorplans can really break an otherwise great project. Almost every suite in Harbour Plaza is well laid out and efficiently designed with very little wasted space.

The Floorplan above is a perfect 1 bedroom layout that features excellent living space and a large bedroom in an excellent square-like shape.

Menkes have also gone back to very slightly larger suite sizes which is a welcomed change for many. 1 bedroom suites are 499-589sq.ft (as opposed to 450 sq.ft. that we are seeing in other projects) and the 1 bedroom & den suite is 633 sq.ft. (as opposed to 570 sq.ft. that we are seeing in other projects).

This 1 Bedroom Plus Den is an ideal floorplan. Square-like shape with a separated den and large windows in both the bedroom and excellent living space.

VIEWS

Having tall buildings allow for some incredible views and Harbour Plaza doesn't disappoint. Whether it's lake views to the south (after you clear 40th floor) or stunning skyline views to the north, you can't go wrong. Below are shots taken from approximately the 60th floor just to give you a flavour of what to expect!

CHAPTER 3 – Top 8 Reasons To Invest at Harbour Plaza

2.1 - Waterfront & Neighbourhood Revitalization

The South Financial Core is already a popular location in Toronto, however, it is important to note that major developments are still happening and this area is still under revitalization.

We already discussed the addition of new office towers that is expected to bring 10,000 new jobs into the area, however, The Union Station Revitalization (currently under construction) will improve the connection to the City and Waterfront Toronto are also improving the area south of Harbour Plaza to better connect this location to the Waterfront.

Waterfront Toronto are working with a comprehensive plan that will improve the ENTIRE stretch of the Central Waterfront from Bathurst Street to Jarvis Street. The "York-Quay" section will create new public spaces and improve the connection Harbour Plaza has with the lake. The renderings below show the new public space and waterfront connection with York Street.

2.2 - The Pricing - Aggressively Priced

One of the major reasons that Menkes’ Harbour Plaza is so attractive is the incredible price point. We looked at the current resale market in Maple Leaf Square (located north of Harbour Plaza) and we were shocked to find how well Harbour Plaza is priced compared to current resale.

Below is a sample of the ICE Prices to highlight the price per square foot.

UNIT SIZE PRICE PER SQUARE FOOT STUDIO - 20th Floor 402sq.ft. $237,900 $592 1 BED - 23rd Floor 503sq.ft. $310,900 $618 1 BED + ST - 34th Floor 522sq.ft. $325,900 $622 2 BED - 30th Floor 791sq.ft. $518,900 $654

Looking at resale numbers allows us to get a snap shot of the current market in a given neighbourhood. The numbers below indicate that Harbour Plaza is priced CHEAPER than the current resale market and does not close until May 2018!!

AVERAGE PER SQ.FT (LAST 5 BUILDING TYPE SALES) Maple Leaf Square Studio $687.50 Maple Leaf Square 1 Bedroom (No Parking) $676.59 Maple Leaf Square 1 Bedroom (Parking) $695.17 Maple Leaf Square 1 Bed + Den (No Parking) $627.94 Maple Leaf Square 1 Bed + Den (Parking) $695.17 Maple Leaf Square 2 Bedroom $737.31

When you compare the numbers above to the Average prices of Harbour Plaza (below), it's easy to see why we think Harbour Plaza is among the BEST PRICED PROJECTS that we have ever worked on.

FLOOR AVERAGE PER SQ.FT (OF ALL UNITS) 10th Floor $595 39th Floor $640

2.3 - Menkes - An Award Winning Developer

Menkes are among the most trusted developers in the Greater Toronto Area and enjoy decades of experience. Menkes has been honoured for superior quality, leading designs and environmental stewardship.

Below are a few of the major awards Menkes have been awarded in recent years.

2012 - BOMA BEST: 25 York St., 5000 Yonge St., 550 & 570 Matheson Blvd., 5655 Kennedy Road

2012 - Office Building Of The Year - Suburban Mid-Rise (TOBY Award): 5500, 5520, 5560, 5580, 5600 Explorer Drive

2010 - Somerset - Community Of The Year

2010 - One Sherway Tower Two - Tarion Award of Excellence Finalist - High-Rise Builder

High quality developers are extremely important when making your investment choice for pre-construction condominiums, and it’s obvious that Menkes is among the best of the best.

2.4 - Developer Driven Appreciation™

2 TYPES OF APPRECIATION

When you purchase during the pre-construction phase, you benefit from 2 types of appreciation – the traditional, “market-driven” appreciation, and the second form, which we’ve labelled “developer-driven appreciation™”

WHAT IS ‘DEVELOPER-DRIVEN APPRECIATION?

When you purchase a unit during the first phase of developer pricing, you benefit the most from the developer raising prices at various points during the sales cycle (for example, at the agent launch, grand opening to the public, start of construction etc.)

Below is an example of Developer Driven Appreciation where the developer raised prices. The second price sheet was released just three weeks after the first. Pay special attention to the 677 sq.ft. model which increased an incredible $68,000!

Above: The initial round of sales for this condominium project

Above: The second round of sales of this project. Notice that the 677 sq.ft. model increased an incredible $68,000 just three weeks after the initial round!

Developers will often raise prices as they go through the sales cycle and hit various sales targets. The BEST time to invest in pre-construction condominiums is right at the beginning!

2.5 - Location - 10,000 New Jobs & Access to Amenities

Harbour Plaza is located in the South Financial Core located at Lower York Street. The South Financial Core boasts incredible access to jobs, amenities and incredible access to some of Toronto's major transit ports.

The South Financial Core is undergoing enormous revitalization backed by some of the Globe's largest companies. Below are a few highlights of major towers coming to the South Financial Core.

• RBC WaterPark Place will feature 930,000 sq.ft. of office space and will become RBC's National Banking Headquarter.

• One York Street (Menkes) is a brand new 35 storey tower which will bring 800,000 sq.ft. of office space.

• South Core Financial Centre, PWC Tower at 18 York Street

• Will bring 10,000 New Job Opportunities to the area!

In addition to new jobs, the South Financial core will feature access to incredible amenities such as the brand new Longo's (grocery store) at the base of 55/65 Bremner (less than 1 minute walk from Harbour Plaza), access to underground PATH network at 1 York (DIRECT Access from Harbour Plaza), Air Canada Centre and Union Station. Harbour Plaza is EASILY a TRIPLE A location!

2.6 - Long Occupancy - May 2018

One of the biggest benefits of pre-construction condominium investing is the heavy leveraging of your equity which allows your money to work REALLY hard for you. Let us explain...

With pre-construction condominium investing, you are able to put down 20%, however, the value of the condominium is increasing at the full 100%. What that means is that for every percent that the condominium increases, your equity increases 5 fold! For exact numbers, see the table below.

ASSUME $300,000 PURCHASE PRICE

% CONDO DEPOSIT AMOUNT NEW PRICE INCREASE ($) EQUITY % INCREASE INCREASE $60,000 1% $303,000 (300,000 + 1%) $3,000 5% (3,000/60,000) $60,000 5% $315,000 (300,000 + 5%) $15,000 25% (15,000/60,000) $60,000 10% $330,000 (300,000 + 10%) $30,000 50% (30,000/60,000) $60,000 50% $450,000 (300,000 + 50%) $150,000 250% (150,000/60,000)

The table above shows the power of leveraging your funds using pre-construction condominium as an investment vehicle. It highlights that for every percent that the condominium increases, your equity increases five percent.

This neighbourhood (South Financial Core) has shown above average-to-high appreciation growth in the 8-10% per year range.

The long occupancy allows your funds to be LEVERAGED for that much longer. The table below shows the value of a $300,000 in 2017 if they follow low (5%), medium (7%) and high (9%) annual appreciation rates.

Return on Equity Price in 2012 Appreciation Rate Price in 2017 Invested ($60,000) $300,000 5% per annum $382,884 138% $300,000 7% per annum $420,765 201% $300,000 9% per annum $461,587 269%

The numbers above highlight the power of leveraged funds when investing in pre- construction condominiums, and the benefit of having a long closing!

2.7 - Iconic Architecture & Landmark Building

Harbour Plaza will feature iconic architecture at the gateway of Toronto that will be a staple of the Toronto Skyline forever!

The two towers at 62-storeys and 66-storeys will be among the tallest in Toronto. The building features a unique flat-iron shape that will stand out among the crowd and feature an incredible podium that is second-to-none in the entire city.

Landmark buildings often boast higher prices and demand even when compared to other projects in the same neighbourhood. This can be highlighted by various examples throughout the city:

• Maple Leaf Square (landmark building) trades higher than Infinity.

• Festival Tower (landmark building) trades higher than M5V Condominiums and other Entertainment District condominiums.

• L Tower (landmark building) Assignments are trading much higher than other St. Lawrence Market condominiums.

• Harbour Plaza will not just be a landmark for this location, but for the entire city.

The image above shows the impact of Harbour Plaza on the Toronto Skyline. The two towers will instantly be recognizable and look spectacular!

2.8 - Exclusive VIP Incentives

Harbour Plaza is expected to be among the most in demand condominium projects of 2013. The Toronto condo industry has been hotly anticipating the release of this project ever since Menkes purchased this 2.5 acre site on Harbour Street just south of Maple Leaf Square for an INCREDIBLE $76,000000.

Clients of TalkCondo & Toronto Condo Boutique will enjoy priority suite selection along with the following incentives:

1. Absolute First Access - As PLATINUM Agents we can provide you with first access and the lowest possible pricing on suites.

2. Maintenance Fee Credit - ONE YEAR Maintenance Fees as credit on closing

3. Extended Deposit Structure - The deposit structure will be extended during the VIP launch as follows:

a. $5,000 Initial Deposit

b. 5% in 30 Days

c. 5% in 120 Days

d. 5% in 365 Days

e. 5% in 540 Days

f. 1% Upon Occupancy (2018)

4. Assignment Clause - We have been able to include an assignment clause, providing our investors the right to sell the unit prior to closing for ZERO DOLLARS! (Regular is $5,000)

5. Connection/Meter Charges

a. Capped Amendment @ $875

6. Capped Levies - When purchasing at the VIP launch, our clients will have the development levies capped as follows:

a. $5,500 - Studio, 1 Bedroom, 1 Bedroom + Den Suites

b. $8,500 - 2 Bedroom and/or 3 Bedroom Suites

CHAPTER 5 – Notes

3.1 - About This Report

This report is an educational guide for people interested in condominiums in the Toronto area.

The information provided in this publication is for educational and entertainment purposes. Mention of specific companies, organizations, or authorities in this publication does not necessarily imply endorsement by the publisher, nor does mention of specific companies, organizations, or authorities imply that they endorse the publication.

Toronto Condo Boutique makes every effort to ensure the accuracy of the information it publishes, but cannot be held responsible for any consequences arising from errors or omissions.

At the time of writing, the information provided was accurate. Due to changes in legislation, market conditions, and other factors, some information will most likely become outdated.

ROI and appreciation calculations are for case study and hypothetical purposes only. The publishers cannot guarantee any returns on investment nor can they predict future market conditions.

As with any investment, there is always inherent risk. The publishers advise that you always check with your real estate, legal, and financial professionals before making a purchase of any kind.

3.2 - About TalkCondo & Toronto Condo Boutique

Whether you’re buying a new condo in Toronto, buying a resale condo, buying a condo assignment, buying a loft, looking for a condo rental, or looking to sell your property, the Toronto Condo Boutique and TalkCondo can and should be your first stop. What sets us apart is our knowledge and experience in the Toronto condo market, our team approach, and our focus on the ENTIRE marketing process.

We are not simply ‘Toronto condo real estate agents’. We have assembled a team of the most professional marketers, photographers, home stagers, web developers, real estate lawyers, mortgage brokers, and licensed real estate agents to give you a one-of-a-kind real estate experience.

The TorontoCondoBoutique.com website is an online directory of the hottest properties, listings, and condo neighbourhoods in the City of Toronto.

TalkCondo.com is the country’s top condo blog with buzz on all new and upcoming condo project launches in Toronto.

Start your condo search today by visiting us at: http://www.torontocondoboutique.com http://www.talkcondo.com