Buyers go back to the ‘burbs
Condo projects in suburbs offer affordability with less maintenance
October 16, 2010 Kathy McCormick, Calgary Herald
The real estate mantra that it's all about location is only part of the equation of why people love the condo lifestyle in the suburbs, says one of Canada's real estate investment leaders.
"It's about the lifestyle it provides," says Don Campbell, author and president of REIN (Real Estate Investment Network).
"It's a little bit outside the hustle and bustle of the downtown and people have a bit of a yard -- and with a townhouse, there's a secure feeling about it. It's almost impossible not to know your neighbours, so you feel safer and it's easier to lock it and go."
But ultimately, condos in the suburbs are all about price, he says.
"It's mostly about affordability."
That resonates with a 33-year-old nurse who recently purchased a townhome in Hawthorne Homes' Mosaic development in Auburn Bay.
"Cost is a factor," says Tina McLean, who currently owns a house in the same neighbourhood.
"Reducing debt was important to me. I love my house but couldn't afford to build a garage and now, I have almost the same size of home, I still have a yard and the overall cost is less."
Her arithmetic includes the cost of maintenance, even though she still has condo fees to pay.
But there's more to it than that.
"It's important for me to have a yard, but less maintenance is just fine with me," says McLean.
"I ride horses, go hiking and spend time with my friends. For me at this point, I want the time to do those things."
She's not alone.
"Suburban low-rise apartment product is 36 per cent of available units under construction and in pre-sale," says Wendy Jabusch, general manager of Hawthorne Homes. "The city is under-served on townhouse product at this time."
Yet that segment is a growing choice for new home buyers because of both the affordability and lifestyle factors, she says.
"Younger, first-time buyers continue to choose multifamily homes. They value living a richer life -- travel, education and pursuing their interests."
Hawthorne is seeing more baby boomers lately, too.
"It appears they are starting to explore options for a simpler life," says Jabusch.
Today's lifestyle offers much more than previous generations' choices, says Doug Owen, business development manager of Hawthorne Homes.
"People today are playing on their X-box with kids all over the world, so they want to travel. This generation doesn't want everything that comes with a traditional house."
They still want some things, but in a different way. Look for xeriscaping -- landscaping that includes things like plants that require less water -- even Astroturf in yards for less work with the same esthetic appeal.
"Today's generation is not willing to give up what they want -- things like a reliable vehicle, fashion and travel," says Jabusch. "And if they buy a more affordable home, they can still do all those things."
As the dust starts to clear after the economic downturn, people are looking for a smart investment -- more bang for the buck, says Campbell.
That's where location is the king.
Because suburb living is less expensive than being downtown, that means more house for less money.
today's residential land developers are building smarter communities -- suburban neighbourhoods that are master-planned to include places not only to live, but to work and play.
Carma Developers, for one, has been instrumental in creating sustainable residential communities that have it all.
Auburn Bay, for example, has a large 17.4-hectare lake, along with 5.3 hectares of park with amenities surrounding it.
The community also has a 7,000-square-foot residents' beach house as its focal point.
It's also adjacent to Seton, Carma's huge new community that includes a new hospital under construction and a surrounding commercial and retail site.
"I did choose Auburn Bay due to the proximity to the new hospital," says McLean, who is a nurse.
"One, for the commute and two, because I felt the value of real estate should hold and increase in the area with the opening of the new hospital and whole South Campus that is supposed to come with it (with everything from a recreation centre to many shops)," she says.
"Since living there, I have found Auburn Bay to be very well-maintained. The boulevards are planted beautifully and the community is very active. You always see people walking over to the beach area in the summer and using the ice rinks in the winter."
McLean says she has met "wonderful neighbours" and has always felt safe in the community.
"Anyone that has come to visit me has always commented on how beautiful the entrance to the community is and about the style and variety of the homes there," she says. "I find that there is a lot of colour and interest in the exterior of the homes."
Whether it's top of mind or not, other people do make a difference, says Campbell.
"Eventually, people will want to sell their home and if it's around a hospital or LRT station, there's a better chance to sell it at a premium price," he says. "Carma has chosen its property locations very well."
The combination of the right size and style of homes with the right price and location have boded well for Hawthorne Homes.
It recently released its latest multifamily Mosaic development -- the 14th since the first one launched in McKenzie Towne -- and this one, too, is in Auburn Bay.
It features 116 traditional row townhouses and 60 terrace town houses, each with single-or double-attached garages.
"Every development we do is different based on the land and the community, but the sizes of the units remain relatively the same." says Owen.
"Floor plans continue to evolve with each development, but we seem to have hit the sweet spot. If you look at the resale market, any
Hawthorne home or Mosaic home has a premium price on it."