A Toronto real estate developer is offering prospective homebuyers a unique incentive in the hopes of alleviating financial woes. The first 100 people to purchase a unit at the new Raglan House Condominiums will receive a sizeable chunk of change from developer Camrost Felcorp when the sale closes.
Those who purchase a one bedroom or a one bedroom plus den will receive $2,500 per month for the first two years after their condo closes, while those who buy a two bedroom or a two bedroom plus den will get $3K per month for 24 months.
Alternatively, buyers can choose to have the same sum taken off the purchase price at close. The incentive is in addition to $20K cash back on closing, regardless of the unit type.
"The first two years after you purchase property are the most financially taxing. You've just outlaid huge costs with closing and a mortgage. If you're moving into your first home you have to furnish it, and if you're an investor you've just paid the land transfer tax," Christopher Castellano, Vice President of Sales and Marketing at Camrost Felcorp, told STOREYS.
"What we decided to do was come up with an incentive to help take a lot of that burden off for the first two years."
Located at 65 Raglan Avenue, Raglan House lies at the convergence of four coveted neighbourhoods: Cedervale, Wychwood, Humewood, and Forest Hill. The charming community is surrounded by parks and trails while still being conveniently located near transit and amenities.
A number of other developers have eyed Bathurst and St. Clair for their next project -- more than 15 buildings are in the works for the master-planned neighbourhood, Castellano said, creating an exciting new hub in the city.
Designed by IBI Architects, the limestone and brick podium of the 28-storey building will blend in seamlessly with the storied neighbourhood, while each of the 320 suites will exude a refined yet comfortable sense of home.
Starting at $800K for a one bedroom, sophisticated details will include Italian Trevisana cabinetry, private balconies, and sun-soaked interiors. A fitness auditorium, terrace lounge, and billiards room are just some of the amenities planned for the building.
One-hundred units need to be sold before shovels can get in the ground, which is expected to occur before year-end. With an anticipated occupancy date of 2027, the incentivized funds would support eligible buyers through to nearly 2030.
While Camrost Felcorp has offered different types of incentives in the past, such as mortgage buy-downs and closing cost coverage, the developer settled on such an incentive for Raglan House due to the current state of Toronto's housing market as well as how they expect purchasers will want to use the funds in the future.
Between tight market conditions, high interest rates, and rising home prices, the hope is that the incentive will help to convince wavering buyers in today's market.
Meanwhile, in 2030, Castellano expects Toronto's housing market to have hit another bull run. At that point, with the money in their pocket, Raglan House owners can decide whether they want to continue living in the building, continue renting out their unit, or exit their investment.
Raglan House has so far received an equal amount of interest from both investors and those looking to buy a home for themselves. Castellano notes, though, that the incentive puts investors in a "very cash flow positive situation" in the building.
"The $20K cash back on closing is tried, tested, and true. That is something the market has seen and loves," Castellano said. "But in addition to that, this incentive really helps purchasers, whether they're investors or homebuyers, during those difficult first two years of ownership."
"The investment we're putting in, there's a huge future in Raglan House... it's going to be really special."
RAGLAN HOUSE
Unit
Amenities
