Everything You Need to Know About Toronto’s 2024 Real Estate Market Forecast

As we head into 2024, things are looking bright for potential new home and condo purchasers in Toronto. While the Toronto real estate market has been facing some challenges, there is hope for a rebound in 2024.

According to reports from RE/MAX, there was a decrease in average sale prices and the number of sales in the Greater Toronto Area (GTA) between 2022 and 2023. The average sale price decreased by 5.9%, from $1,203,916 in 2022 to $1,132,681 in 2023, and the number of sales decreased by 13.5%, from 67,452 in 2022 to 58,367 in 2023.

In the GTA in 2023, the market was considered a seller’s market. However, there could be a shift toward a balanced or buyer’s market by the end 2024, depending on the neighbourhood in question. Average residential sale prices are predicted to drop by 3%, whereas the number of sales is expected to grow by 10.4%.

The top three areas to keep an eye on in the GTA are the Durham Region, Markham/Richmond Hill, and downtown Toronto. Durham Region is particularly attractive due to its affordability and value. Markham/Richmond Hill is gaining popularity due to improved affordability, and downtown Toronto remains desirable for its access to public transit and walkability, as well as its proximity to endless amenities and cultural attractions.

In terms of new construction trends, there is a focus on smaller condo units that offer desirable amenities like terraces, swimming pools, and fitness facilities.

According to the Toronto Regional Real Estate Board (TRREB), the condo market has become more balanced, with sales increasing but listings growing at a faster rate. This has led to a slight decrease in the average price, providing some relief amidst higher borrowing costs. The market conditions have provided more choice and negotiation power for first-time buyers, resulting in lower selling prices on average. While the market is expected to tighten in the second half of 2024, relief in borrowing costs (including interest rates) is anticipated in 2024 and 2025 due to population growth and market trends. This, coupled with a relatively resilient economy, should make home ownership affordable for more households this year and moving forward.

According to the Royal LePage Market Survey Forecast, the aggregate price of a home in Canada is projected to reach $843,684 in Q4 2024, with a 5.5% annual increase, while the median price of a condo will jump 5% to $616,140. The majority of price appreciation is expected in the second half of 2024, with modest quarterly increases in Q3 and Q4. The prediction is based on the assumption that the Bank of Canada has finished raising interest rates and will hold the key lending rate at its current 5% through the first half of the year. Modest interest rate cuts are expected to begin in the late summer or fall, potentially pushing home prices up.

Overall, this is good news for the Toronto real estate market. A rebound in home sales is anticipated, driven by lower borrowing costs and increased affordability. According to Phil Soper, the President and CEO of Royal LePage, with the right conditions, the market could return to mid-single-digit home price appreciation, which is a healthy long-term affordability level.

Despite the challenges posed by the current market conditions, according to a Leger survey commissioned by Re/Max, 73% of Canadians consider real estate a sound long-term investment. What do you think? Learn more about new condos and townhomes for sale in downtown Toronto by checking out BAZIS’ new communities.

Do you have questions about the Toronto real estate market? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

Are New Development Condos in Toronto a Better Investment Than Resale?

When it comes to investing in the real estate market in Toronto, prospective buyers often find themselves debating whether new development condos or resale condos are the smarter choice. While both options come with their own set of advantages and drawbacks, this blog will dive into why new development condos may offer a more rewarding investment opportunity compared to resale condos.

New Development Condos

Lowest Possible Price: One of the most appealing aspects of pre-construction condos is the ability to secure the best possible price. Builders and developers are looking to sell units to fund construction, so you get amazing value. Buyers also often have the opportunity to negotiate favourable deals directly with the developer, resulting in a lower purchase price compared to resale properties. Plus, you secure a price before the condo is built and ready to move in – by which time it has most likely appreciated in value quite considerably.

Flexibility in Down Payment: New development condos provide buyers with the advantage of spreading out the down payment over an extended period, usually across the first year. This longer timeframe to make your payment allows for better financial planning and flexibility.

Personalized Home: Unlike resale condos, new development condos in Toronto allow you to personalize your home from the very beginning. From choosing the layout to selecting the features, finishes, and other elements, you can tailor your condo to your exact preferences and requirements.

Top-Notch Amenities: New development condos often come with an array of luxurious amenities such as fitness centres, swimming pools, lounges, terraces, daycare facilities, and ground-level retail spaces. These amenities not only enhance your quality of life but also make the overall living experience more convenient and enjoyable. They also help to secure and increase your home’s resale value.

Better Investment Potential: As pre-construction condos are brand new and no one has lived in them, plus since they have top-notch features, finishes, and amenities, they have the best potential to appreciate in value over time. This aspect makes them an appealing choice for investors, as they stand a higher chance of gaining value when it comes time to sell.

Consideration of Long-Term Goals: Investing in a new development condo requires careful consideration of long-term goals. Because the wait times during the construction phase can be lengthy, you need to contemplate factors such as potential life changes, including marriage, starting a family, and needing more space, as well as whether you will still want to live in that area in the future.

Prime Location: Pre-construction condos in Toronto are usually located in popular neighbourhoods. These areas have everything you need: easy access to transportation, shops, entertainment, and all the modern conveniences. Living in these prime locations doesn’t just improve your quality of life, it also adds value and desirability to the property.

Smart Technology and Sustainability: Pre-construction condos often use smart technology and sustainable features that make life easier and more convenient but that also save you money on energy costs. Plus, they contribute to the overall long-term value of the property.

Resale Condos

Immediate Availability: A significant advantage of resale condos is their immediate availability. Buyers can occupy the property right away, making them a suitable choice for those who need a place to live or want to generate rental income immediately. Some new development condos may also be available for immediate move-in, however – depending on the stage of construction at which you make your purchase.

Potential Maintenance and Renovation Costs: Unlike pre-construction condos, resale properties may require costly repairs, renovations, or modernization. Buyers need to take into account the potential expenses associated with making the property suitable for their needs.

Bidding Wars: Due to the scarcity of available properties in Toronto, the resale condo market often fosters bidding wars. Buyers may find themselves competing with others and having to pay above the listed price to secure the desired property. With new development condos, there are no bidding wars and the prices advertised are guaranteed.

Potential for Limited Appreciation: Resale condos may not appreciate in value as much as newer or less-used units. Buyers often gravitate toward newer constructions, which can decrease demand for resale condos in the future.

In conclusion, while both new development and resale condos have their own merits, new development condos hold unique advantages. These include the potential to secure the best price, flexibility in down payment, the ability to personalize the home, prime locations, enticing amenities, and a higher likelihood of future appreciation. However, buyers must carefully consider their long-term goals and commitments before investing in pre-construction condos. While resale condos offer immediate availability, buyers need to factor in potential maintenance costs, bidding wars, and the potential for limited future appreciation. Ultimately, the choice between new development and resale condos rests on your individual preferences, investment goals, and financial capabilities.

Which do you think is the better investment option – new development or resale condos? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

How Does the Inclusionary Zoning Policy Affect You as a Buyer of a Pre-Construction Condo in Toronto?

As the demand for housing in Toronto continues to grow, the city has implemented various policies to address the issue of housing affordability. One such policy is the Inclusionary Zoning Policy. In this blog, we will explore how the Inclusionary Zoning Policy affects you, as a potential buyer of a pre-construction condo in Toronto.

What is the Inclusionary Zoning Policy?

The Inclusionary Zoning Policy, also known as IZ, is a proactive approach to combat the rising housing prices in Toronto and to promote housing affordability. According to recent statistics, only 2% of housing built or approved in Toronto in the last 5 years has been affordable. The City of Toronto states: “Our city is growing and we want to make sure new housing is affordable for those who call Toronto home.”

Through the Inclusionary Zoning Policy, the City hopes to:

– Increase the amount of affordable housing;

– Continue to encourage market housing development by supporting a diverse range of housing supply; and

– Create more inclusive, complete, and equitable communities.

How does the Inclusionary Zoning Policy work?

Under the Inclusionary Zoning Policy, developers in Toronto are required to set aside a percentage of units in their new residential developments for affordable housing. These units are usually priced below the market rate and are targeted toward individuals or families with lower to moderate incomes (households earning approximately $32,000 to $92,000 per year, depending on household size).

The Official Plan and Zoning By-law amendments for inclusionary zoning outline how this new affordable housing policy applies in Toronto, including:

– Requiring developments located in both a Protected Major Transit Station Area and an Inclusionary Market Area to provide affordable housing;

– Requiring 5-10% of condominium developments to be affordable housing;

– Increasing those requirements incrementally to 8-22% by 2030;

– Ensuring units stay affordable for at least 99 years; and

– Setting ownership prices based on new income-based definitions of affordable.

What does this mean for new homebuyers of pre-construction condos in Toronto?

The new Inclusionary Zoning Policy has many benefits for new homeowners, especially if you find yourself within the low-to-moderate income bracket. For lower income individuals or families, this means:

More Affordable Housing Opportunities: Lower to moderate-income families who have previously struggled to find suitable housing options can now purchase a home at a price that aligns with their budget, ensuring the long-term affordability of their home.

Reduced Financial Burden: With the cost of living in Toronto increasing, many individuals and families are struggling to make ends meet and are facing challenges when it comes to saving for a substantial down payment or qualifying for a mortgage. With the availability of affordable units in pre-construction condos at below-market prices, it becomes more feasible to secure financing and manage the ongoing costs associated with homeownership.

Stable and Secure Housing: For individuals and families who have experienced the instability of rental housing, the Inclusionary Zoning Policy provides a much-needed solution. By purchasing a pre-construction condo in an affordable housing development, families can gain stability and security in their housing situation, and can even secure an asset for future equity. This stability can foster a sense of belonging, improve overall well-being, and empower families to focus on other aspects of their lives, such as education and career growth.

Built-In Community Support: Pre-construction condos in Toronto often include community amenities designed to assist residents. These may include access to childcare, fitness centres, parks, and recreational spaces. By incorporating these amenities, the Inclusionary Zoning Policy creates a holistic environment that fosters community well-being and enhances the quality of life for all residents, regardless of income level.

The new Inclusionary Zoning Policy also has many benefits for ALL homeowners, regardless of income bracket. These include:

Social Inclusion and Diversity: The Inclusionary Zoning Policy promotes social inclusion and diversity within Toronto neighbourhoods. By deliberately creating mixed-income communities, people from different income brackets can interact, share experiences, and learn from one another. This diversity adds vibrancy and richness to the community, promoting understanding and breaking down social and economic barriers.

Sustainable Living: Many pre-construction condos encouraged by the Inclusionary Zoning Policy are designed with environmentally-friendly features and sustainable practices. By investing in these developments, homebuyers can contribute to a greener and more sustainable future, aligning their values with environmentally-conscious living.

Whether you are a lower-income family seeking affordable housing or an individual with a higher income considering ethically-conscious homeownership, the Inclusionary Zoning Policy opens doors for a wide range of buyers. By understanding the advantages offered by this policy, you can contribute to the growth, vibrancy, and inclusivity of Toronto’s housing market.

Do you have any questions about the Inclusionary Zoning Policy in Toronto? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

How and Why to Purchase a Pre-Construction Condo in Toronto

The real estate market in Toronto has been booming in recent years, making it an attractive option for homebuyers and investors alike. Among the various options available, pre-construction condos maintain significant popularity. In this blog post, we will explore the process of purchasing a pre-construction condo in Toronto, as well as the underlying reasons why it can be a wise investment choice.

Understanding Pre-Construction Condos

Before diving into the process of purchasing a pre-construction condo, it’s crucial to understand what it entails. Unlike traditional condos, which are ready for occupancy, pre-construction condos are purchased during the planning phase or before construction begins. Buyers have the opportunity to select units and customize them based on their preferences.

The Benefits of Purchasing a Pre-Construction Condo

Price Advantage

One of the most significant advantages of buying a pre-construction condo in Toronto is the potential for price appreciation. By investing in a project at its initial stage, buyers can benefit from purchasing at a lower price than the market value at the time of completion. This can provide excellent returns on investment in the long run.

Customization Options

With pre-construction condos, buyers have the advantage of selecting layouts, finishes, and fixtures according to their personal preferences. This allows for a personalized touch and the ability to create a space that truly reflects the buyer’s style and needs.

Modern Design and Amenities

Pre-construction condos often offer modern architectural designs and a wide range of amenities that cater to residents’ comfort and lifestyle. These amenities can include fitness centres, swimming pools, rooftop gardens, and even concierge services. Investing in a pre-construction condo allows buyers to access such amenities right from the beginning.

Potential Rental Income

For investors looking to generate passive income, pre-construction condos can be an excellent source of rental income upon completion. Toronto’s high demand for rental properties, coupled with the growing population, makes it an ideal market for property investors.

The Process of Purchasing a Pre-Construction Condo


Start by researching reputable developers and projects that align with your investment goals or lifestyle requirements. Look for developers with a track record of delivering quality projects on time.

Understanding the Floor Plan

Analyze the different floor plans available for the project to find the one that fits your preferences and needs. Consider factors such as square footage, the number of bedrooms, and layout.


Make sure to assess your financial readiness and explore financing options. Pre-construction condos typically require a deposit structure that spans the construction period. Consult with a mortgage specialist to determine the best financing plan for your situation.

Review the Agreement and Contracts

Before committing, carefully review all documents related to the purchase, including the purchase agreement, condominium guidelines, and any associated costs. Seek legal advice to ensure you fully understand the terms and conditions.

Secure the Unit

Once you’ve done your due diligence and are satisfied with your decision, submit a purchase offer and deposit to secure your desired unit. Be prepared to wait as construction times can vary.

Completion and Occupancy

As the construction progresses, you’ll be notified of the completion date and occupancy details. Prepare for the final closing costs and arrange for a home inspection before taking possession of your unit.

Purchasing a pre-construction condo in Toronto provides numerous benefits, including price advantages, customization options, potential rental income, and access to modern amenities. However, thorough research, understanding of the process, and careful consideration are crucial before making a commitment. By following the outlined steps, you can navigate the journey of purchasing a pre-construction condo and make an informed decision that aligns with your investment goals and lifestyle needs.

Do you have any questions about purchasing a pre-construction condo in Toronto? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

Buying Pre-Construction in Toronto: The Top 5 Advantages to Investing

Are you thinking about investing in real estate in Toronto? Toronto is a vibrant city with a booming real estate market, and one of the hottest trends right now is buying pre-construction condos. In this blog post, we’ll dive into the top 5 advantages of investing in pre-construction condos in Toronto, so you can make an informed decision. Let’s get started!

  1. Lower Purchase Price

One of the biggest advantages of buying a pre-construction condo in Toronto is getting in at a lower purchase price. Developers often offer early-bird incentives to attract buyers, such as discounted prices and special payment plans. By investing early, you can secure a condo at a lower price compared to the market value. This means that as the property appreciates in value during the construction period, you’ll already be one step ahead, ensuring a great return on your investment.

  1. Potential for High Appreciation

Investing in a pre-construction condo also offers the potential for high appreciation. With Toronto’s hot real estate market, property values have been steadily increasing year after year. By investing in a pre-construction condo, you have the opportunity to ride the wave of appreciation and maximize your returns. As the condo is completed and the demand for housing in Toronto continues to rise, the value of your investment is likely to increase significantly.

  1. Customization Options

Another advantage of buying a pre-construction condo is the opportunity to customize your unit. Unlike buying a resale condo, where you have limited control over design choices and you might have to undertake costly renovations to make the space feel modern and fresh, pre-construction condos are brand new. Pre-construction condos allow you to work with the developer to select finishes, amenities, and even layout configurations that work best for you and your family’s lifestyle. This level of customization ensures that your condo feels like a unique and personal space that suits your life and preferences. Plus, it can also be a selling point if you decide to rent or sell the property in the future.

4. Modern Amenities, Sustainable Construction, and Smart Home Technology

Pre-construction condos in Toronto often come equipped with all the modern amenities and features that today’s homebuyers desire. These condos may feature luxurious living spaces with state-of-the-art fitness centres and rooftop terraces, attracting buyers and tenants with added value. More and more developers are also prioritizing eco-friendly construction practices, including energy-efficient designs and sustainable materials that go above and beyond the Ontario Building Code, contributing to reduced energy consumption and environmental impact.

Alongside sustainable construction, many pre-construction condos boast smart home technology, offering convenience and sophistication. From integrated home automation systems to energy-saving features, pre-construction condos in Toronto can enhance your lifestyle by allowing you to control the lights, temperature, and security from your smartphone.

  1. Rental Income Potential

Last but not least, investing in a pre-construction condo opens up the possibility of generating rental income. Toronto is a thriving rental market, and with the city’s growing population, the demand for quality rental properties continues to rise. By purchasing a pre-construction condo, you have the opportunity to become a landlord and generate passive income while building equity. As the property is completed and the condo market remains strong, renting out your unit can provide a consistent stream of income while your investment continues to appreciate over time.

Buying a pre-construction condo in Toronto comes with numerous advantages. Not only can you secure a property at a lower purchase price and potentially enjoy high appreciation, but you also have the opportunity to customize your unit, enjoy modern amenities, and generate rental income. With all these benefits, it’s easy to see why investing in pre-construction condos in Toronto is a smart choice.

So, if you’re considering a real estate investment in Toronto, don’t miss out on the opportunity to invest in a pre-construction condo. Contact our team today to learn more about available projects at BAZIS, and find the perfect pre-construction condo that suits your investment goals and lifestyle. Happy investing!

Do you have any questions about investing in pre-construction condos in Toronto? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

Understanding Canada’s New Tax-Free First Home Savings Account (FHSA)

Are you a Canadian dreaming of owning your first home? Saving for a down payment can be a daunting task, but there’s a new option available that can make the process easier. The new First Home Savings Account (FHSA) is a registered plan that allows you to save tax-free for your first home, up to certain limits. Although availability is currently limited and varies by financial institution, many institutions are expected to launch their FHSA later in 2023. In this blog post, we’ll explore everything you need to know about the new FHSA, including why it was created, how it works, how it’s different from the existing RRSP Home Buyers’ Plan (hint: it’s more generous!), and how you can maximize its potential, even if you don’t have immediate plans to buy a home. So, if you’re a Canadian looking to make your dream of home ownership a reality, keep reading!

What is an FHSA?

An FHSA (First Home Savings Account, just to recap) is a registered account announced by the federal government in 2022. It’s designed to help Canadian residents save for their first home tax-free. An FHSA combines some of the features of a Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Contributions to an FHSA will generally be tax-deductible, similar to an RRSP. Withdrawals to purchase a qualifying home will be non-taxable, similar to a TFSA or the RRSP Home Buyers’ Plan (more on this later).

Why should I consider opening an FHSA?

Opening an FHSA has several advantages, including:

  • Tax benefits: Your FHSA contributions can reduce your taxable income.
  • Tax-free growth: Any investment income in your FHSA is non-taxable while it’s in your account.
  • Tax-free withdrawals: Pay no taxes on your withdrawals when you use your FHSA toward the purchase of a qualifying home.
  • No repayment is necessary: Unlike the RRSP Home Buyers’ Plan, any funds withdrawn to go toward the purchase of a new home do not need to be repaid.

How do I qualify to open an FHSA?

To open an FHSA, you must be a Canadian resident who has reached the age of majority in your province or territory. You must also be an eligible first-time homebuyer who hasn’t lived in a qualifying home in the past four calendar years.

Types of FHSAs

You can hold the same types of investments in an FHSA as in a TFSA or RRSP, including cash, mutual funds, publicly traded securities, government and corporate bonds, and guaranteed investment certificates (GICs). When it comes to FHSAs, there are three different types that can be offered:

  • Depositary FHSA: An account with a financial institution that holds money, term deposits, or GICs.
  • Trusteed FHSA: A trust with a trust company as trustee that holds qualified investments such as money, term deposits, GICs, government and corporate bonds, mutual funds, and securities listed on a designated stock exchange.
  • Insured FHSA: An annuity contract with a licensed annuity provider.

Banks, insurance companies, credit unions, and trust companies can all be FHSA issuers that offer these types of accounts. Additionally, if you prefer to build and manage your investment portfolio by buying and selling different types of qualified investments, you can set up a self-directed FHSA.

How much can I contribute and withdraw from my FHSA?

If you’re considering opening a FHSA, it’s important to understand the rules around contributing and withdrawing funds. The annual contribution limit for an FHSA is $8,000, which includes any transfers you make from an RRSP. You can carry forward any unused portions of your annual contribution limit up to a maximum of $8,000. The lifetime contribution limit for an FHSA is $40,000, and you must use your FHSA contributions within 15 years of opening the account or by the time you turn 71 years old, whichever comes first. After that time, you can transfer your savings into an RRSP or Registered Retirement Income Fund (RRIF) or make a taxable withdrawal. The good news is that there’s no limit for qualifying withdrawals, which means that if you qualify to use your savings toward the purchase of a qualifying home, you can withdraw amounts from your FHSA tax-free. Individuals may claim an income tax deduction for FHSA contributions made within the calendar year or in a previous year, to the extent not previously deducted, and a maximum of $8,000 unused contribution room can carry forward to the following year.

What is a qualifying withdrawal?

If you’re a first-time homebuyer and a resident of Canada, you may be eligible to make a qualifying withdrawal. A “qualifying home” is defined as a housing unit located in Canada, including a share of the capital stock of a cooperative housing corporation. To be eligible, you must have a written agreement to buy or build a qualifying home located in Canada before October 1st of the year following the year of withdrawal. Additionally, you must intend to occupy the qualifying home as your principal place of residence within one year of buying or building it.

What if I don’t end up buying a home?

Funds withdrawn from your FHSA that are not used to purchase a qualifying home are subject to tax. If you find that you have a balance in your FHSA that you’re not using toward a home purchase, you have the option to transfer those funds to an RRSP or RRIF on a non-taxable transfer basis, subject to applicable rules. The great news is that transfers from your FHSA to your RRSP or RRIF do not impact your available RRSP contribution room. It’s important to note, however, that the funds transferred to an RRSP or RRIF will be taxed upon withdrawal. So, if you’re not planning on using your FHSA savings toward a home purchase, transferring the funds to an RRSP or RRIF could be a smart move to avoid paying taxes on the balance.

Can I transfer funds from my RRSP to an FHSA?

It’s possible to transfer money from your RRSP to your FHSA without paying taxes. However, there are annual and lifetime contribution limits for these transfers, and they cannot be claimed as a deduction from your income. It’s important to note that transferring funds from an RRSP to an FHSA will not increase your RRSP contribution room. Additionally, it’s not currently possible to transfer assets in-kind to your FHSA.

What’s the difference between an FHSA and the existing RRSP Home Buyers’ Plan?

Under the current Home Buyers’ Plan, Canadians who meet eligibility requirements and conditions can withdraw a maximum of $35,000 from their RRSP to go toward the purchase of a first-time home. They must then repay the amount over a period of 15 years. However, an FHSA works differently, in that there is no requirement to repay the funds withdrawn from the account. As well, you’re able to contribute and withdraw up to $40,000 (versus $35,000). However, only $8,000 per year can be contributed, whereas with the RRSP Home Buyers’ Plan, the amount you can contribute annually depends on your income and your personal available contribution room.

Can I use both the FHSA and the Home Buyers’ Plan to buy my home?

Yes. You can use combined savings from your Home Buyers’ Plan and your FHSA toward the purchase of the same qualifying home.

Are you thinking about opening a First Home Savings Account (FHSA), and if so, do you have any questions? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

BAZIS is a real estate development company specializing in developing communities and pre construction condos in Toronto area. We’re committed to excellence in every facet of the commercial and residential real estate development process. Combining visionary architecture, design, marketing and construction with the epitome of corporate integrity and environmental responsibility, BAZIS has become a major force in articulating Toronto’s ever-evolving skyline.

Do New Development Condos in Toronto Allow Airbnb Rentals?

Airbnb is a popular accommodation option for travellers in Toronto. It’s estimated that there are over 8,000 listings on the site, and this number continues to grow each year. As an Airbnb host, there are many benefits to listing your property on the site. It’s a great option, for example, if you’re looking for a change in careers, trying to make passive income, wanting to become your own boss, or looking to rent out your home while you travel or are away for work. It sounds great if you already own a property, but what if you’re in the market for a new condo? Do new development condos in Toronto allow Airbnb rentals? Read on to find out more.

What Is Airbnb?

Airbnb is a website that connects people who have extra space in their homes with people who want to stay there. Airbnb hosts rent out their private rooms or entire homes, often at lower rates than hotels and other lodging options. Airbnb has become popular in recent years because it allows users to travel more affordably while getting a unique experience staying in someone else’s home.

Know the Regulations

The impact of Airbnb on new development condos is one that should be considered by developers and homebuyers alike. The rise in popularity of short-term rentals has resulted in a decrease in available long-term rental units, as well as an increase in competition for available units. While the city continues to grapple with an affordable housing crisis, the City of Toronto amended their short-term rental rules and regulations in November 2019 to dissuade investors from purchasing properties for the use of short-term rentals alone. The new short-term rental rules are such that you can short-term rent your home only if it’s your principal residence. This is the residence where you live and the address you use for bills, identification, taxes and insurance. You can only have one principal residence at a time, so therefore you cannot legally run more than one short-term rental. You can rent up to three bedrooms in your principal residence for an unlimited number of nights per year or the entire home for a maximum of 180 nights per year. Your home must be in a residential area in the city, and you must be registered with the City.

Do New Development Condos Allow Airbnb Rentals?

The short answer is that it depends.

Because of the new rules and regulations, you can only operate an Airbnb out of your principal residence, meaning it’s not a viable option for condo investors who are interested in purchasing property for the sole purpose of renting it out as a short-term rental. That being said, if your plan is to live in your unit and rent it out under the new short-term rental rules and regulations, then there are a number of factors to consider before buying into a pre-construction condo.

One of the most important considerations is whether or not Airbnb rentals are allowed in the building. The restrictions on Airbnb rentals vary from condo to condo, and range from no restrictions at all (for example, some buildings allow short-term rentals year-round) to very few nights allowed per year (for example, only one weeknight per month) to none permitted at all. Condo boards can also place restrictions based on unit type or floor level; for example, some buildings allow only penthouse owners to rent out their units as short-term rentals while others allow any owner who lives in their unit full-time to do so.

Before purchasing a property for short-term rentals such as Airbnb, it’s important to check the preliminary bylaws and ensure that they permit this type of rental. However, it’s worth noting that some developments may prohibit short-term rentals once residents move in. In certain situations, it may be possible to persuade the developer to include grandfather clauses for short-term rentals. Nevertheless, it’s advisable to consult a real estate lawyer before making any decisions.

If you’re looking to rent out your condo on Airbnb, there are a few things you should keep in mind. Make sure that the building allows short-term rentals and has an agreement with Airbnb or another service like it. Many buildings have restrictions against short-term rentals because they want to maintain a sense of community among residents and discourage transient use by people who may not be invested in the building’s success. If you’re considering renting out your unit through Airbnb, ask about these policies before making any decisions about whether or not it’s right for you.

Do you have any questions about new development condos and Airbnb? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

Making a Smart Investment: Comparing Pre-Construction Condos and Resale Properties

The Toronto real estate market is always evolving, and as a potential homebuyer, it can be challenging to decide which type of condo to invest in. While resale properties offer established communities and a record of previous sales, pre-construction condos promise the latest in modern design and technology, often stellar locations, and many other benefits. In this blog, we’ll explore the pros and cons of each option to help you decide which type of condo is the right investment for you.

Pre-Construction Condos

Pre-construction condos are properties that are still in the planning and construction phase, as the name suggests. These units offer buyers the opportunity to enter the real estate market at a more gradual pace, as the buyer typically pays a deposit of 5-15% over a period of time, with the remaining down payment due at the completion date, which is typically about 2-5 years later.

Pre-construction condos usually feature the latest advancements in modern design and technology, making them appealing to prospective buyers or renters. Furthermore, these condos are usually situated in emerging neighbourhoods, which can lead to higher appreciation potential over time as the area becomes more desirable. Many condos are also built in prime locations, however, to help intensify cities.

Investing in a pre-construction condo has several significant advantages. Firstly, buyers can secure the property at the lowest price without having to participate in bidding wars. Additionally, buyers can customize the unit according to their preferences, such as choosing the appliances, finishes, and layout that best serve their needs. Furthermore, pre-construction condos come with warranties, which can provide reassurance in case of any unforeseen issues.

Despite their benefits, pre-construction condos present their own set of challenges. One potential challenge is the risk of construction delays, which can affect your ability to move in, generate rental income, or sell the unit. Since pre-construction condos require time to build, you must have a good understanding of what your future might look like in a few years. For example, how much space will you need? Are you planning to expand your family? Additionally, since pre-construction condos are not yet constructed, you cannot inspect the unit before purchasing, which can be a disadvantage for those who prefer to see the space before making a decision.

Resale Properties

Resale properties are homes that have been previously owned and are now being sold by their current owner. These condos are typically located in established communities, offering a sense of stability and history. Resale properties are oftentimes larger than pre-construction condos, offering more space for families or those looking for a little extra room.

One of the primary advantages of investing in a resale is the ability to see the property before you buy. This means that you can inspect the home for any potential issues and get a feel for the space and layout. You can also research the property’s history, including previous sales and any issues that may have arisen.

Another benefit of investing in a resale property is the ability to move in right away and the potential for immediate rental income. Since these units are already built and ready to occupy, you can start renting them out right away. This can help you earn a return on your investment more quickly than waiting for a pre-construction unit to be completed.

Despite their benefits, resale homes present their own unique challenges. One of the main concerns is the age of the property, which may require more frequent maintenance and repairs. Additionally, since these properties have already been owned, they are not as customizable and may not feature the latest advancements in modern design and technology. This can have an impact on the property’s appeal to potential tenants or buyers. Furthermore, purchasing a resale property typically requires a significant amount of money upfront, as the down payment is usually around 20% of the property’s value.

Which Type of Condo Should You Invest In?

When choosing which type of condo to invest in, it’s crucial to consider your objectives, preferences, and financial position. If you want immediate rental income, quick occupancy, or a sense of community, a resale property may be the better option. However, if you’re searching for a new unit that you can tailor to your liking and the potential for appreciation over time, a pre-construction condo might be more suitable. You must also assess your finances and determine which option is most suitable for you. Can you afford a down payment of 20% or more right now, or do you need some time to make your payments?

Additionally, the location of the unit is critical to consider since it can influence its appeal and potential for rental income and appreciation over time. Seek out units situated in sought-after neighbourhoods with convenient access to public transit, shopping, and entertainment options.

Ultimately, the decision of whether to invest in a resale or pre-construction condo comes down to your personal goals and preferences. Do your research, weigh the pros and cons of each option, and make an informed decision that aligns with your investment strategy.

Do you have any questions about resale or pre-construction condos? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

The Most Common Mistakes of Pre-Construction Condo Buyers

 pre-construction condos Downtown Toronto

Buying a pre-construction condo in downtown Toronto in 2023 can be an exciting opportunity. Investing in a pre-construction condo in Toronto gives you access to the best units at the lowest pricing, not to mention a brand new home that you get to customize to your liking! Pair that with an excellent neighbourhood and a reputable builder, and you’ve got yourself a slam-dunk. Purchasing a pre-construction condo is not only a great life choice, but also a lucrative investment if you choose to rent or sell later.

While the rewards are plenty, it’s essential to proceed with caution when investing in a pre-construction condo in Toronto. The process can be long and confusing, and if you don’t take care you can end up paying for it with your wallet or your sanity (or both!). We’ve put together a list of the most common mistakes of pre-construction condo buyers so that you can be empowered when making your purchase and enjoy the experience from start to finish.

Mistake #1: Not Getting Professional Advice

One of the biggest mistakes pre-construction condo buyers make is trying to cut costs and navigate the buying process alone. The process of buying a pre-construction condo in Toronto is complex. Before signing any legally-binding contracts, you’ll want to consult an experienced real estate agent, lawyer, and mortgage broker. There are many details to iron out before making major life decisions. These professionals can help you navigate your rights and responsibilities as a condo owner by helping you understand the terms and conditions of your contract. Additionally, they can advise you on the legal aspects of your purchase agreement and your financing options. They’ll also be able to spot any red flags or concerns on your behalf, and ensure that everything goes smoothly and that there are no surprises.

Mistake #2: Not Having a Pre-Approved Mortgage

One of the biggest blunders of purchasing a pre-construction condo in Toronto is when buyers make the assumption that they’ll qualify for a mortgage. Most pre-construction condo projects take years to complete, and your life circumstances can drastically change in that time. You may be eligible for a mortgage now but that might not be the case down the road. Before closing your deal, get in touch with a mortgage broker and make sure you qualify for a pre-approved mortgage.

Mistake #3: Not Planning for Closing Costs and Other Fees

Buying a pre-construction condo requires a considerable amount of financial planning. Many condo buyers look at the price tag without realizing that they’ll also be required to pay additional fees – for example land transfer taxes, registration fees, and legal fees. If you’re not prepared, these costs can quickly add up and become overwhelming. So, before making any decisions, you’ll want to ensure you’re aware of all the costs related to your pre-construction condo. Consider hiring a real estate broker who can help you understand your deposit structure, maintenance fees, property taxes, and closing costs. You’ll also need to factor in additional costs like the monthly interest rate on your mortgage (which can change over time), insurance fees, utility bills, and parking fees.

 pre-construction condos Downtown Toronto

Mistake #4: Not Planning for the Future

Buying a pre-construction condo means buying a home that hasn’t been built yet. On average, it takes three to five years for a pre-construction project to be completed, depending on its size and complexity. It’s common for builders to face setbacks and delays in construction, which means that the time to complete the project and occupancy is unpredictable. Many buyers purchase their homes with their current lifestyle in mind, but when it comes to pre-construction condos, you need to consider where you’ll be in a few years. You’ll want to factor in potential life changes that may occur – for example, what if you end up having a child and a one-bedroom condo isn’t enough space? Before signing any contracts, think about your future and plan ahead.

Mistake #5: Expecting the Floor Plans to Stay the Exact Same

Many people fall in love with floor plans and renderings shown in marketing brochures without realizing that things can change. This can lead to disappointment when the finished condo isn’t exactly what they had imagined. It’s important to understand that when purchasing a pre-construction condo, you’re buying into the builder’s vision before construction begins. During the construction phase, it’s not uncommon for the initial floor plans to change slightly, either to create more space or to accommodate different features. The best way to combat disappointment is to ensure you’re working with a good builder who’s known to deliver quality results, and be ready to work with a flexible floor plan.

Do you have any questions about the pre-construction condo buying process? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!

BAZIS is a real estate development company specializing in developing communities and pre construction condos in Toronto area. We’re committed to excellence in every facet of the commercial and residential real estate development process. Combining visionary architecture, design, marketing and construction with the epitome of corporate integrity and environmental responsibility, BAZIS has become a major force in articulating Toronto’s ever-evolving skyline.