Real Estate has always been known as one of the safest and profitable forms of investment especially long term. Many individuals have created extreme wealth all through real estate. Throughout Canada, we have seen great growth in real estate and larger cities continue to offer amazing opportunities to start and build your wealth with a real estate portfolio. Toronto is one of the most exciting and diverse cities in Canada, especially the Downtown Toronto area which appeals to all age groups, especially young working professionals who like the city for the opportunities it offers, as well as the various amenities. Investing in a condo apartment in the heart of Toronto comes with a number of benefits.
Steady real estate prices and the everlasting high demand in Downtown Toronto create the perfect setting for a wise investment which encourages investors to enter the Toronto real estate market. Immigration and growth for the City of Toronto is projected to continuously grow and Toronto renews its mark on the map along with all the major International Cities as a great place to live. However, a real estate endeavour should be based on an informed decision. First-time condo investors should familiarize themselves with the market and define their goals. Let's take a look at the benefits and possible downsides you can expect when opting for a Downtown Toronto condo.
The benefits of a Condo Investment
The general idea of investing in a property like a condo is to gain on the appreciation in value over time and sell it at a higher price, while in the meantime, rent it out and use the rent money to pay down the mortgage. In this way, investors build equity without sacrificing their primary income for the mortgage. On the other hand, being a landlord may incur some costs, like repairs and vacancy periods, but if managed correctly, the earnings should still top expenditures.
Turning your investment into a rental has many perks and benefits, especially in Downtown Toronto where vacancy rates are at record lows and demand for rental units are great. Landlords have been able to achieve elevated rental rates due to this high demand and usually have next to no vacancy periods. If rent is your primary investment goal, you should be aware that landlords pay taxes on the income above expenditures and many investors look at this as rental income they can use in their retirement years should they hold onto the property that long.
As we see on television, house and condo flipping is also very common for investors to find great returns in real estate. This is by far a greater practice in the United States and Canadian cities other than Toronto. Unfortunately, due to the extra land transfer tax you have to pay when purchasing a property in Toronto, finding the right property at the right price in order to turn a profit becomes a bit more challenging but it can be done.
Condo units that need major repairs and renovation usually sell at an affordable price, so many investors bear the costs of upgrading the place before selling it at a higher price. In practice, condo flipping requires detailed planning and a solid budget, but if you do it right, there is money to be made.
How to find a condo apartment in the busy Downtown market?
When you become a condo owner, you will enjoy the high demand, but while you are still looking, you might get a headache trying to find one to buy. The Downtown Toronto real estate market is one of the busiest in the world, and the vacancy rate is under 1%, which means it’s hard to find available properties. Buyers are finding themselves in multiple offer scenarios but finding the right property and being aggressive will pay off in the long run. You need an active agent who knows which condo units and buildings to focus on and which ones to avoid. By acting fast and staying on top of things, I guarantee to find my investors the best deal. It is my job to keep an eye on available condo apartments and let you know as soon as it hits the market.
Is your first condo investment the second property in your name?
A Downtown Toronto condo investment is a huge financial decision that requires a stable income when applying for a mortgage. Buying a second property requires a higher down payment than when buying your primary residence. As a first-time homebuyer, you can qualify for a lower down payment, but buying a second home will require at least a 20% down payment. To avoid any unexpected events at the lender’s office, it’s best to discuss your options with a mortgage broker.
Why Downtown Toronto?
Downtown Toronto is probably one of the best locations for a property investment. There is always someone looking to rent or to buy a place in the city core, and the economic future looks promising, too. The city offers everything one needs, and people are especially drawn to Toronto where there is truly something for everyone.
Looking to invest in a condo apartment in Downtown Toronto? Contact me to stay in the loop with new listings.