Exploring the Hottest Neighbourhoods for Pre-Construction Condos in Toronto
Toronto is a beautiful, dynamic city that continues to attract new residents from around the world. With its diverse culture, thriving economy, and unbeatable lifestyle, it’s no wonder more people are choosing to call Toronto home. For those looking to invest in a new home or expand their real estate portfolio, the city’s diverse neighbourhoods offer plenty of opportunities. Here are some of Toronto’s hottest neighbourhoods for pre-construction condos this fall.
King West Village
King West is one of Toronto’s trendiest neighbourhoods, perfect for those who love an active, social lifestyle. Known for its chic, modern condos, the area effortlessly blends historic charm with contemporary living. New developments here often come with upscale perks like rooftop lounges, fitness centres, and concierge services, catering to young professionals. With its close proximity to the Financial District, King West is a prime spot to enjoy bustling nightlife, top-notch dining, and easy access to entertainment venues like the Rogers Centre and Scotiabank Arena.
The Distillery District
The Distillery District is a cultural gem in Toronto, where history and modern living come together. This pedestrian-only neighbourhood attracts those looking for a unique and artsy living experience. With its cobblestone streets and historic architecture, new pre-construction condos are transforming the area by blending contemporary design with the district’s vintage feel. Residents here can enjoy art galleries, boutique shops, and seasonal events, like the Toronto Christmas Market. As the neighbourhood continues to grow and thrive, pre-construction condos in the Distillery District offer a great opportunity for both homeowners and investors.
Yorkville
Yorkville is the epitome of luxury living in Toronto. Known for its high-end shopping, gourmet dining, and vibrant entertainment scene, it’s the perfect spot for anyone who loves a refined lifestyle. Pre-construction condos here are crafted with luxury in mind, offering spacious layouts, premium finishes, and exclusive amenities. Plus, the location couldn’t be better – with the city’s core, the University of Toronto, and the Royal Ontario Museum all just a short distance away. For those seeking a property that holds its value and prestige, Yorkville remains a top choice. Our 1 Yorkville condominium in Yorkville is a great example of all this chic neighbourhood has to offer.
Image: Liberty Village BIA
Liberty Village
Liberty Village is a favourite among young professionals and creatives. Once an industrial hub, it’s been transformed into a hip, modern neighbourhood packed with cozy cafes, tech startups, and co-working spaces. Pre-construction condos here are perfect for those who want to mix work with play, offering open-concept layouts, stylish interiors, and social-friendly amenities. With new parks and improved transit on the way, Liberty Village keeps getting better, making it one of Toronto’s most exciting spots to invest in.
Downtown East
Toronto’s Downtown East has completely transformed, including the Garden District (home to our upcoming 100 Bond St. community), Queen Church, and also especially around Corktown and the Canary District. This revitalized area has seen a wave of new pre-construction projects, thanks to major infrastructure upgrades and community developments. Close to the Distillery District and the waterfront, it offers a more relaxed vibe than the busy city core but remains well-connected. With new parks, cultural spaces, and commercial spots popping up, it’s become a draw for both investors eyeing future growth and residents looking for a balanced urban lifestyle.
Waterfront (East Bayfront and West Don Lands)
Living by the water is a dream for many, and Toronto’s waterfront neighbourhoods are buzzing with new condo projects. East Bayfront and West Don Lands are two spots seeing major growth, offering stunning views of Lake Ontario, sleek modern living spaces, and easy access to waterfront trails. Pre-construction condos in these areas come with floor-to-ceiling windows, high-end amenities, and smart home tech, perfect for those who love a mix of luxury and comfort. With better connections to the city’s core, these neighbourhoods are becoming prime spots for anyone looking to invest in Toronto’s ever-evolving waterfront.
Yonge and Eglinton
Yonge and Eglinton has been a hotspot for development for years and the area continues to draw interest from buyers and investors alike. This central location offers a great mix of residential and commercial properties, with new condo projects enhancing its appeal. The Eglinton Crosstown LRT is set to improve connectivity, making it even easier for residents to get around the city. With fantastic schools, shopping, dining, and entertainment options nearby, Yonge and Eglinton is perfect for those who want to be in the heart of it all without the hustle and bustle of downtown. BAZIS has plans to build more in this gorgeous neighbourhood soon, with our planned upcoming 2350 Yonge St. condominium at Yonge and Eglinton as well as our 1366 Yonge St. condominium a bit further south, at Yonge and St. Clair Av.
Bayview Village
Bayview Village – home to our upcoming Bayview Woods community – is a hidden gem for those who want a quieter, upscale living experience in Toronto. Located in North York, this neighbourhood features serene, tree-lined streets and is close to lush green spaces like East Don Parkland. The pre-construction condos here offer a blend of luxury and practicality, with spacious layouts and modern amenities, all conveniently near the Bayview Village Shopping Centre for shopping and dining. The area’s convenient location near major highways and public transit makes it ideal for professionals looking for a peaceful escape without sacrificing urban convenience. For investors, the steady interest and ongoing developments indicate strong potential for future growth in this area.
Which Toronto neighbourhood are you most interested in? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Toronto’s 2024 Fall Market Outlook: Trends, Predictions, and Opportunities
The GTA real estate market faced mixed conditions in August 2024. While home sales were down compared to the same time last year, there was a slight increase in new listings. The average home prices also dropped a bit, with affordability remaining a concern for buyers. This shift was driven by economic factors such as interest rate changes, market supply, and varying demand across property types.
Sales and Price Trends
In August 2024, according to the Toronto Regional Real Estate Board (TRREB), GTA REALTORS® reported 4,975 home sales, which is 5.3% less than the 5,251 sales in August 2023. New listings increased by 1.5%, with 12,547 added to the MLS® System. TRREB President Jennifer Pearce noted that the recent rate cut by the Bank of Canada will improve affordability, particularly for buyers with variable-rate mortgages. She mentioned, “First-time buyers are especially sensitive to changes in borrowing costs. As mortgage rates continue to trend lower this year and next, we should experience an uptick in first-time buying activity, including in the condo market.”
The average home price in the GTA dropped by 0.8% from last year, and is now at $1,074,425. This small decrease shows that the region has plenty of housing available. However, the larger 4.6% drop in the MLS® Home Price Index is because more detached homes were sold, which affects the average differently.
Image: TRREB
Jason Mercer, TRREB Chief Market Analyst, provided more context: “As borrowing costs trend lower over the next year-and-a-half, home buyers will initially benefit from both lower monthly mortgage payments and lower home prices. Even as demand picks up, especially in 2025, it will take time for the inventory of listings to be absorbed.”
Affordability Challenges and the Impact of Interest Rates
While interest rate cuts are helping, affordability is still a challenge in Toronto. The Bank of Canada’s rate cut on September 4, 2024, was good news for homebuyers, but experts say more cuts will be needed to really improve affordability. Luckily, markets expect another rate cut in October and one more in December, which could lower interest rates to 3.75% by the end of the year, making financing even easier for buyers.
REMAX reported that from January to July 2024, the average sale price for all property types in Toronto went up by 0.5%, but sales dropped by 5.4%. Even with more homes listed, first-time buyers still struggle with affordability. REMAX noted in a market report: “Interest rates will have to fall further to create the affordability necessary for many buyers, particularly first-timers.”
This sentiment is echoed by RBC, that even though interest rates are dropping, many Canadian homebuyers are still reluctant to enter the market. Slow economic growth and higher unemployment have lowered consumer confidence. With inventories now covering 4.1 months of sales nationwide, buyers have more room to negotiate, which is helping to stabilize prices.
Fall Market Outlook
Looking ahead to fall, there’s hope for more buyer activity. Zoocasa’s Fall 2024 Housing Market Predictions suggest that increased inventory and lower interest rates could lead to a busy market. However, Zoocasa warns that while prices might seem lower, competition for popular homes, especially in top school districts, will still be tough.
“We’re seeing condo inventory reach unprecedented levels, driven by a surge in newly registered buildings, many of which are investor-owned,” said Zoocasa’s Lauren Haw. The larger supply of condos, especially in Toronto, could cause prices to drop further, giving buyers more options and better negotiating power.
Image: Zoocasa
In August 2024, the Toronto housing market showed mixed trends – sales were down, listings were up, and home prices were fluctuating. However, expected interest rate cuts could boost buyer activity, bringing some hope. While affordability remains a challenge, especially for first-time buyers, the outlook for 2025 looks positive with lower borrowing costs and better inventory levels. As fall approaches, buyers can anticipate new opportunities as the market stabilizes, creating a more balanced environment for those ready to buy.
What are your predictions for Toronto’s fall real estate market? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Toronto Condo Investors Are Losing Money – Here’s How to Avoid That Pitfall and Be Profitable
Investing in Toronto’s condo market has long been considered lucrative, attracting local and international investors. However, recent trends indicate that many investors are facing financial losses due to market fluctuations, increased carrying costs, and regulatory changes. Despite these challenges, there are strategies investors can use to avoid pitfalls and ensure profitability. Here’s a guide to navigating the Toronto condo market successfully.
Understand Market Dynamics
Toronto’s real estate market is cyclical, influenced by interest rates, government policies, and economic conditions. Stay updated by consulting real estate reports, attending seminars, and following market analysts.
Choose the Right Developer
A well-established developer with a track record of successful projects is less likely to face construction delays or financial issues. Research the developer’s history, check reviews from past buyers, and visit their completed projects if possible. A reliable developer can significantly mitigate risks associated with pre-construction investments.
Location, Location, Location
Invest in areas with high demand and growth potential. Downtown Toronto remains prime due to its proximity to business hubs, entertainment options, and public transportation. Emerging neighbourhoods undergoing revitalization projects or infrastructure improvements also present great opportunities.
Choose the Right Property
Look for properties with unique features or amenities that stand out in the market, such as state-of-the-art fitness centres, rooftop terraces, or concierge services. Additionally, consider the building’s age and condition. Pre-construction condos typically require less maintenance and have higher resale value, while older buildings may offer lower purchase prices but higher renovation costs.
Carefully Review the Contract
Pre-construction condo contracts can be complex and filled with legal jargon. Review the contract thoroughly and understand the terms and conditions. Pay attention to clauses related to construction timelines, potential delays, and your rights as a buyer.
Factor in All Costs
Many investors overlook the full spectrum of costs associated with pre-construction condos. Beyond the purchase price, consider closing costs, development charges, HST, interim occupancy fees, and potential upgrades. Ensure you understand all the fees and budget for these expenses to avoid financial surprises.
Plan for Delays
Construction delays are common in pre-construction projects and can impact your investment timeline. Plan for potential delays and have a backup plan. Delays can affect rental income if you plan to lease the unit or delay your move-in date if you plan to occupy the property. Being prepared for these scenarios can help manage expectations and reduce financial stress.
Rental Income vs. Appreciation
Decide whether your investment strategy focuses on rental income, property appreciation, or a combination of both. In Toronto, rental demand is high, making it a good option for steady income once the condo is completed. On the other hand, property appreciation can offer substantial gains, especially in rapidly developing neighbourhoods. Considering these factors will help you align your investment strategy to your financial goals.
Mitigate Risk with Diversification
Instead of putting all your capital into one property, consider spreading your investments across different condos or real estate sectors. This approach can cushion against market volatility and ensure a steady income stream.
Get Professional Advice
Navigating the pre-construction market can be complex, and professional guidance can be invaluable. Work with a reputable real estate agent who specializes in Toronto pre-construction condos. They can provide insights into market trends, project details, and investment opportunities. Additionally, consult with financial advisors and mortgage brokers to understand your financing options and optimize your investment strategy.
Stay Informed on Regulatory Changes
Regulatory changes can significantly impact the real estate market. Recent measures by the Canadian government to cool the housing market, such as stricter mortgage rules and foreign buyer taxes, have influenced condo prices and investor strategies. Staying informed about these changes will allow you to adapt your investment approach accordingly and avoid potential pitfalls.
Long-Term Outlook
Real estate investments, especially pre-construction condos, often require patience and resilience. Market conditions will fluctuate, but well-chosen properties in the right locations tend to appreciate over time. Have realistic expectations and be prepared for short-term volatility. A long-term outlook will help you manage market changes and be profitable.
Do you have any questions about investing in pre-construction condos in Toronto? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Considering Using a Property Management Company? Here’s What You Need to Know
Investing in real estate can be a lucrative way to build wealth, but managing properties requires time, expertise, and effort. Property management companies can help investors maximize their returns and minimize the headaches associated with being a landlord. Are you a Toronto real estate investor considering hiring a property management company? Here’s what you need to know:
The Benefits of Hiring a Property Management Company
- Efficient Rent Collection: Property managers streamline rent collection with regular office hours and online payment options, ensuring consistent cash flow.
- Reduced Vacancies: Experienced managers reduce vacancy periods by finding and retaining high-quality tenants through effective marketing and tenant screening.
- Appropriate Rent Pricing: Property management companies use market data to set competitive rent prices, balancing maximum revenue with tenant affordability.
- Property Maintenance: Regular maintenance and prompt repairs by property managers help maintain and increase property value, preventing small issues from becoming costly problems.
- Legal Compliance: Property management companies ensure all lease agreements comply with local regulations, reducing legal risks.
- 24/7 Support: With round-the-clock emergency services, property managers handle urgent issues, freeing landlords from late-night calls.
- Accounting and Tax Assistance: Property management companies provide year-end financial summaries, making tax preparation easier and more accurate.
- Cost Savings: Property managers often get discounted rates from contractors due to their volume of work, passing savings onto property owners.
Considerations for Investors
While property management companies offer numerous benefits, there are considerations you’ll want to keep in mind as a smart investor. These include:
- Cost: Management fees can range from 5% to 10% of rental income. However, the efficiency and expertise they provide often result in higher overall profitability.
- Transparency: It’s crucial to choose a reputable company that is transparent about their fees and services. Review contracts carefully to avoid hidden charges.
- Relationship Management: A good relationship with your property manager is vital. Clear communication and regular updates help ensure your investment goals are met.
Key Takeaways
Hiring a property management company can significantly enhance the profitability and sustainability of real estate investments. They handle the day-to-day operations, allowing investors to focus on growth and acquisition. However, it’s important to select a reliable and reputable firm to ensure you receive the full benefits.
For those considering whether to hire a property manager, weighing the pros and cons and understanding the financial implications is essential. Ultimately, a well-chosen property management company can be a valuable partner in your real estate investment journey.
In Conclusion
Property management companies offer a host of advantages that can make real estate investing more manageable and profitable. From efficient rent collection and reduced vacancies to legal compliance and cost savings, their services can transform the way you manage your investments. By carefully selecting a reputable firm, investors can enjoy the peace of mind and financial benefits that come with professional property management.
If you’re considering investing in Toronto real estate, we have plenty of tips for investors of all types. Learn why it’s the perfect time to invest in Toronto’s pre-construction market, the importance of location when buying pre-construction condos in Toronto, how to make your Toronto condo more renter-friendly, and plenty more on our blog (check out the handy Investors section).
Questions? Comments? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
Embracing Opportunity: Why Now Is the Perfect Time to Invest in Toronto’s Pre-Construction Condo Market
Toronto’s real estate market is buzzing with excitement, and it’s a great time for those looking to buy pre-construction condos. Despite some recent challenges, things are looking up, offering investors new opportunities for growth and success.
Let’s take a closer look at the future of the pre-construction condo market in Toronto, where positive momentum is building. A combination of factors is coming together to enhance the buyer experience, making it an exciting time to get into the pre-construction condo market. Check out our guide to buying pre-construction condos in Toronto before you dive into the condo market.
A Positive Outlook
Despite the ups and downs of the condo market, there’s a glimmer of hope on the horizon. Condo sales saw a brief dip last year, but 2024 and especially this springtime has brought an increase in new listings, revitalizing the market. This increase not only balanced supply and demand but also led to lower prices, creating a favourable environment for homebuyers.
Looking ahead, there’s a lot of anticipation about what the Bank of Canada might do next. Interest rates are predicted to be cut in June, which could really shake up the housing market. Lower interest rates mean more affordable mortgages, which could increase demand in pre-construction condos and create new opportunities for investors. Lower interest rates can also mean that home prices increase, however – so it’s not necessarily a good choice to wait until interest rates drop to much lower rates.
Why Invest Now?
With the market constantly changing, now is an excellent time to invest in Toronto’s pre-construction condo market. With reduced competition and steady inventory, buyers share a unique opportunity to secure a great deal in the Toronto real estate market. Unlike previous years where the typical year-over-year price of pre-construction condos increased, prices have remained stable, and developers are sweetening the pot with incentives like extended deposit structures and state-of-the-art amenities.
If you’re looking to take advantage of the current market conditions, you’ll want to do so quickly. With interest rate changes on the horizon, there is uncertainty regarding how it’ll affect the market, so it’s a great time to lock in a good price on a new pre-construction condo. If interest rates are cut and make things more affordable, demand is expected to increase, and eventually, prices too. By waiting for construction to finish, you can skip the resale market and set yourself up for long-term value.
More Incentives for Buyers
To make things even more appealing for buyers, Toronto developers are offering some amazing incentives. Extended deposit structures mean you can get into a pre-construction condo with less money upfront, making it easier to enter the market. Additionally, incentives like free or discounted parking, the right to lease during the occupancy phase, and credits to cover closing costs add even more value.
Trends in Condo Design
Beyond market dynamics, a wave of innovation is sweeping through condo design, shaping the future of urban living. Sustainability is now a key focus, with developers incorporating eco-friendly practices and amenities like green roofs and energy-efficient appliances.
Smaller units are on the rise, reflecting a fast-growing city and a shift toward more efficient and sustainable living. These compact but thoughtfully-designed spaces maximize functionality without compromising comfort.
Additionally, amenities are redefining the condo living experience, with state-of-the-art facilities creating a sense of community and luxury, right at home. From fitness centres to rooftop terraces and co-working spaces, these amenities elevate the quality of life for residents.
Smart technology is transforming condo living, making it more convenient, comfortable, and connected. Features like smart locks and thermostats, app-controlled entry systems, and parcel lockers are now common in new pre-construction condos.
Embrace Opportunity
It’s a great time for investors to take advantage of Toronto’s pre-construction condo market. With a positive market outlook, strategic timing, incredible incentives, and innovative design features, buyers can feel confident buying a pre-construction condo in Toronto.
Do you have any questions about the future of the pre-construction condo market in Toronto? Connect with BAZIS on social media (Facebook, X, or Instagram) and let us know!
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!
Taking a Look at Toronto’s Fall 2021 Real Estate Market Positive Outlook
The pandemic has been a turbulent time for real estate in the Greater Toronto Area (GTA) and Canada at large. Whether you’re contemplating purchasing your first new home or condo, moving to a larger home, downsizing, or investing in real estate, you’re likely interested in the market and in being kept apprised of the latest trends and developments.
According to the Toronto Regional Real Estate Board (TREB), total residential real estate transactions were down 18% last month compared to the year before (9,046 transactions in September of 2021, compared to 11,033 transactions in September of 2020), and total new listings were down 34% compared to last year (just 13,483 listings in September of 2021, compared to 20,441 listings in September of 2020). The sharp decline in listings and smaller decline in transactions shows that there is a lack of supply in the GTA real estate market, so it’s not surprising to see that the average selling price increased 18.3% year over year (for an average of $1,136,280 in September of 2021, compared to $960,613 in September of 2020). Listing days on the market have also decreased (14 days in September of 2021, compared to 16 days in September of 2020).
With new home and condominium prices on a steady upward swing – with no sign of stopping – the best time to buy real estate in the GTA is, as always, as soon as possible.
RBC’s latest Housing Trends and Affordability Report, which measures affordability based on ownership costs as a percentage of household income, rose to a 30-year high in the second quarter of 2021. In Toronto, the report shows that the share of income a household would need to cover ownership costs is, on average, 59.1%.
The share of income necessary to cover the costs of owning a single-family detached home in the GTA is rising rapidly, making this dream more and more difficult for families to achieve. Soaring demand for detached homes during the pandemic made these homes’ prices increase even more. Fortunately, owning a condo apartment continues to be a more affordable option for many families, young professionals, and empty nesters and downsizers. Semi-detached homes and townhomes are also great options that offer much more value than fully-detached single family homes.
The strong real estate market can make getting into the market a challenge, but is good news for home owners and investors. For those considering purchasing a home or condo, the time is now. Toronto’s real estate market is strong and will have many opportunities for sellers, buyers, and investors alike.
Do you have questions about the Toronto real estate market? Connect with BAZIS on social media (Facebook, Twitter or Instagram) and let us know!
Everything You Need to Know About Investing in the Toronto Real Estate Market
Real estate is an extremely lucrative market. Investing and getting involved in the market seems simple in theory, but the reality is that there’s more to it than meets the eye. Having a clear goal in mind and knowing what methods you’ll use to approach this can make or break your success.
If you’re ready to take a leap of faith and tackle real estate investing in Toronto, read on for the top three tips that we recommend you keep in mind.
Outline and Understand Your Goals
As straightforward as this seems, many investors forget how important this step is and don’t stop to consider what goals they may have in mind. Investing in the real estate market can be broken down into two strategies based on your end goal. Are you looking to build equity or perhaps to develop another form of cash flow coming into your pocket each month?
Either one of these is a great starting point for anyone, and both these strategies can be used in tandem with one another.
Building Equity
It’s a common understanding that properties appreciate. In short, that’s what an equity gain is. You profit on the appreciation of the property when you decide to sell it or, in real estate terms, “flip it.” Without getting into the nitty gritty on tax implications, it’s recommended that you play the long-term game for an equity gain.
Approaching your real estate investment with an equity play is a great way to make a good chunk of change in Toronto. Year over year we’ve been seeing a steady increase in the Toronto condo market. As with anything, proper research on the market in Toronto will help set you up for success and some serious cash in the long run.
Developing a Form of Cash Flow
You now have a condo in your hands. It’s building equity, but what do you do now? You don’t want to pay out of pocket to keep the place running, or, worse, put yourself in a hole. The best method is to generate cash flow by renting it out.
A great place to start here is to do some research on what the average rental price is for some of the condos in your building.
Remember, you’re also building equity as the property is being rented out. So, why not take advantage and put both these strategies in play?
Higher Premiums
Let’s say you’ve decided on renting out the condo to get some money coming in monthly. How do you maximize it? There are a few ways you can get creative to help reduce your mortgage amount, allowing you to charge a premium.
Larger Down Payment
Making a larger down payment on a condo will help reduce the monthly mortgage you’ll need to pay. In most cases, if you make more than a 20% down payment, you can qualify for a 30-year amortization period. This allows for a cheaper mortgage amount, but the cool thing is that you’ll pocket more money every month.
Numbers, Not Emotions
We understand that your new property is a rental property and you want it to look good. But realistically, you must approach it with the mindset that it’s a business and your sole goal for this is to collect a cash flow or collect equity. So debating if the upgraded hardwood floor is better than what you currently have isn’t worth it.
Rental Properties Are on the Rise
Renting a property in Toronto has been on the rise for years. As condo prices increase, it has been difficult for new families to get into the market and to own a property right away. One of the quickest ways for someone to acquire a place is just by renting.
As more high-profile companies set up shop in Toronto, many people choose to rent their condos in the city to save on costs. Leverage the growing market to establish a portfolio for yourself in the long run.
We know making the first investment is hard, but did you know that real estate is becoming a bit more affordable? Learn about How New Townhomes & Condos Increase Affordable Housing in Toronto
Investing in Toronto condos is a great way to make some money, whether that be long-term investment or cash flow coming in monthly. Regardless, before you jump in the deep end, we recommend getting advice from a realtor – that way, you know you’re playing by the rules. Are you interested in investing in the Toronto real estate market? Join us on our social media pages (Facebook, Twitter and Instagram) and let us know!
10 Things to Consider Before Buying a New Townhome in North York
Buying a new home, townhome, or condo is a big investment and a decision that will impact your and your family’s lifestyle for years to come. If you’ve settled on the idea of buying a townhouse in North York, this blog post is for you.
Townhomes are a great option for families who are looking for their own home – with the spaciousness and privacy of a detached home – but with all the convenience and ease of condo living. As we outlined in a previous blog post about the benefits of townhome living, townhomes typically include multiple floors, designated parking spaces, and a shared wall with another home or homes. Townhome communities usually include shared communal spaces and are generally regulated by a homeowners’ association, which ensures that community maintenance and upkeep are taken care of and that everyone in the community abides by certain rules or guidelines. The benefits of buying a townhome include cost savings and affordability, amazing locations, single family living without the maintenance, a community vibe, and stunning shared spaces.
Not sure what the differences are between a townhome and a condo when it comes to home ownership, legal statutes, and privacy? Check out our blog post “Townhomes vs. Condos: Do You Know the Differences?”
If you’re going to buy a townhome specifically, there are unique considerations that you should take into account before making your decision. Here are 10 things to consider before you buy a new townhome in North York:
#1: Your Budget
First things first: before shopping for a townhome, get a mortgage pre-approval and know the budget that you’re working with. This will help you to shop smart, to not fall in love with properties that are out of your means, and to be able to act quickly once you’ve found “the one” (you’ll know it when you find it!).
Townhomes often offer good affordability because they’re less expensive to build compared to single detached homes, due to the high land costs in the Greater Toronto Area.
Using a mortgage affordability calculator is a good place to start if you’re not sure of what your budget is.
#2: Where You Want to Live
Location, location, location – it matters! Before buying a new townhome in Toronto, consider its location and if it’s in an area that you would truly like to live in. Things to consider about a neighbourhood include:
- Its proximity to major highways and transit options such as buses, subway or light rail transit (LRT) – both existing and upcoming/under construction are important to consider
- The schools in the area (their quality and whether there are options for French Immersion or Montessori, if you’re looking for those)
- The proximity of other community and family-friendly amenities such as daycares, libraries, community centres, restaurants, shops, grocery stores, salons, movie theatres, museums, attractions, and so on
- Its walk score and how many places you would be able to walk to on a daily basis (as well as whether or not the neighbourhood is pedestrian-friendly)
- Its bike score and how many nearby parks/green spaces there are to explore
- How close or far it is from your work, your family or friends’ homes, etc.
#3: Your Desired Lifestyle
How do you want to live? Do you enjoy walking to nearby shops and restaurants, or biking along natural trails? How do you get to work – walk, take transit, or drive? Do you have a family? How many kids? How about a dog? How much free time do you have on a typical weekday? How do you like to spend your weekends? All of these questions will have an effect on the type of lifestyle that you like to live.
Low-maintenance living can be yours with a townhome purchase, although townhome owners do have more maintenance to take care of than condominium or apartment owners. Because they’re smaller lots, townhomes are usually quite easy to maintain – and you won’t have to worry about exterior maintenance such as clearing snow or driveway repairs.
Many busy families today love the idea of maintenance-free living. A townhome lifestyle can give you more time to focus on what matters most: spending time with your family.
You’ll also want to find a townhome community that has a vibe that matches the lifestyle you’re looking for. Are the homeowners social and neighbourly, or do they stick more to themselves? Are there community events? Take these factors into consideration before buying a townhome.
#4: Homeowner Fees
Townhomes that have communal areas and shared common elements typically have a homeowners’ association, which is responsible for managing the neighbourhood’s common areas such as roadways and parks. If there’s a homeowners’ association, there will be fees associated with the management of these shared elements.
Before choosing a townhome to purchase, you’ll want to know whether it has a homeowners’ association and what the monthly fee costs, as well as what it covers or doesn’t cover. Make sure to factor this cost into your financial calculations and monthly budget.
For example, at our Bartley Towns community, the townhomes share a common element – the roadway – and so there is a monthly maintenance fee, although it’s quite low at just $113.95 per month.
#5: Mortgage Rates
Make sure you’re up to date on all the latest mortgage rules and regulations and take your time shopping around for the best rate. It’s always a good idea to compare mortgage rates from at least three different lenders.
#6: Community
When you buy a townhome, you don’t exist on an island – you become part of a community. This goes beyond the location or neighbourhood. A community consists of the people who live in the neighbourhood and the unique fabric that they weave together. Is the community diverse, friendly, and accessible? Do neighbours say hello to each other and maintain relationships? Do you get a good feeling when you walk through the community and when you visit the local shops? Find a community that feels a bit like home already, and before you know it you’ll be an integral part of it.
#7: Privacy and Personalization
Townhome communities have various degrees of privacy, based on the townhomes’ construction (how thick the walls are and how well they are sound-proofed) as well as the layout of the townhome designs (whether they’re stacked or not, for example). Make sure to talk to the builder (for a new townhome build) or neighbours (for an older build) to get an idea of what you can expect and to see if it suits your lifestyle.
You’ll also want to know what the rules are in terms of personalization, both to your new townhome’s interior and the exterior. Many townhomes have rules about what changes you’re allowed to do to the home’s exterior, for example.
#8: Style and Design
Just as you’d explore the features and finishes of a condominium or detached home before buying, you’ll also want to see if a townhome’s design suits your style before making the plunge. Details like flooring and kitchen countertops can be costly to replace, so you’ll save money and time if you purchase a home that you love right off the bat.
You’ll also want to consider the home’s layout and make sure that the floor plan works for you and your family.
#9: Amenities
Many townhome communities come with shared amenities or communal spaces such as driveways, roadways, parks, and sometimes even pools, gyms, or saunas. Determine which amenities are important to you and worth the extra cost, and then check out which amenities the townhome you’re looking at has.
#10: Builder
Lastly, know your builder. Buying a townhome from a reputable builder with a history of building and developing exceptional communities will secure your investment and put your mind at ease.
BAZIS has a long reputation of designing luxurious living spaces with the utmost attention to detail. Being able to successfully combine visionary architecture and design with marketing and construction has turned BAZIS into a reckoning force in pronouncing the city’s landscape.
The company is known for the unique architecture and high standards of luxurious finishes of its various residences. Knowing that each of BAZIS’ developments is crafted with exquisite design, superior location and elaborate amenities will give you peace of mind.
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