(07-14-2024, 01:04 PM)danbrotherston Wrote: If the condo corporation owned the unit, the projected income of the unit would count as income for the condo corporation. It would directly impact the condo fees charged. This isn't some hidden number, or some hypothetical future number, it's a real (as in realised) savings today.
For an already built condo the condo fees affect resale value, but for a developer pre-selling a condo the projected fees do not have a large impact. No one believes the condo fee projections to begin with, and even if they did many pre-build units are sold to people that will never take possession and just do an assignment sale before close. You say "This isn't some hidden number, or some hypothetical future number" but for pre-construction sales (which is all the developer cares about, they don't get paid for resale value) it is exactly that, a hypothetical future number.
In any case, if this building really was setup that way, with the commercial rent offsetting the condo fees, wouldn't the developer have marketed it that way? Surely they'd be shouting it from the rooftops. This whole idea of the developer capturing the value of the commercial unit through increased residential sale prices depends upon people knowing about it, and being willing to pay more upfront for their condo as a result. If no one here heard about it then the developer definitely failed to capture that value, and it's once again a gift to the purchasers.
(07-14-2024, 01:04 PM)danbrotherston Wrote: Selling the units as a separate unit, I have no idea how or even if this works under the legislative framework for condo corporations in Ontario.
It works just fine, lots of other condos in KW are setup this way. For example, Charlie West has 4 commercial units alongside the 305 residential units (and other special units, like the parking unit and the rooftop unit).