Deposits at Q&A Condos earn 6% annual interest

Orion Szathmary, his wife and two children left Toronto’s Beaches neighbourhood recently for what they thought were bucolic pastures further east in Guildwood, but they have since realized that was a mistake.

While the family’s young children finally had a big yard in which to play, owning a house with a large yard came with all of the drudgery and burdens of, well, owning a house.

“Our A/C broke within two weeks of us moving in, and our hot water tank was already broken,” the 42-year-old entrepreneur told CREW. “It made us realize that, not only did we miss living in the Beaches, we wanted to live in a home where unexpected maintenance problems were essentially fixed for us by virtue of our monthly fees, which we’d always quite enjoyed about condo living.”

Not long after that air conditioner broke, Szathmary and his wife purchased a three-bedroom unit at Queen & Ashbridge Condos, a 17-storey, 360-unit project by Context Development and RioCan Living in the Beaches—a preeminent Toronto neighbourhood that, in addition to being a stone’s throw in either direction to the downtown core and Lake Ontario, feels like a small town smack in the middle of a metropolis.

“I could list you a million reasons why we wanted that area,” said Szathmary. “If you want to go for a nice dinner at a nice restaurant in Leslieville, you walk out the door and turn left; if you want to go towards the community and enjoy the scenic beach right down to the water, you walk out the door and turn right. We’re in the middle of two amazing, unique and established Toronto neighbourhoods.”

There is, however, another reason the family purchased their unit at Q&A. Their deposit structure is earning them 6% annual interest, and Szathmary, a former banking executive for an online brokerage, knew the opportunity was too good to pass up.

“The one incentive that really caught my eye was 6% interest on deposits. With interest rates where they are right now, 6% seems really attractive. I mean, given that some European countries have negative interest rates at the moment, I'll take 6% all day long.

“I also like the flexibility it creates. Generally, I’m in no rush for a preconstruction project to get finished—I like delays—because the way I view it, the more time that passes, the more time my investment has to appreciate, mortgage-free. That’s always made delays a good news story for me. With this 6% interest incentive, any delays to construction are now 6% sweeter.”