For some time, Toronto’s real estate market has been an attractive location for investors who are looking to buy, rent and flip properties for a profit. Historically, profits have been quite high, providing investors with a solid return on investment and creating even more demand in the area. If you’re considering investing in Toronto or another city in Canada, here we outline five reasons why investing in real estate in Toronto and the GTA is a smart decision.
Appreciation happens when you sell your investment property for more than you paid for it, and Toronto properties have had a great run of significant appreciation. Historically, homes have appreciated faster than condos, but Toronto condos have had a great run over the last several years. Before choosing which type of property to invest in, be sure to look at the most recent market trends.
Speaking of different property types, Toronto has a wide range of housing options to choose from. You’ll find condos, townhomes, duplexes, multi-family buildings, single-family homes, homes with secondary suites, and even mixed-use residential/commercial properties. There are also many new construction opportunities in and around the city to consider that can turn a profit, especially if you purchase early in the project. Depending on your investment goals, you can easily find the type of income property to suit your needs.
The GTA area receives a consistent flow of young skilled workers and new immigrants looking for high-paying jobs and a touch of city life. Toronto rental rates are at an all-time high and vacancy rates are around 1%. The only thing you need to be concerned about is finding the right tenant for your property. Teaming up with a property management company can ensure that you always have the best tenants and that your property is never vacant.
If you purchased your dream home, but could use some help making your mortgage payment, a rental suite might be just what you need. There are a wide variety of homes with legal secondary suites that can be rented out to generate income. As of November, rentals.ca listed the average rental rate in Toronto at $1,754/month. In fact, at current interest rates, even $1,000 per month in rent can cover over $200,000 of your mortgage over a standard term. This is perfect for those homeowners who have a large family home but haven’t started a family of their own yet.
Many of the homes that still remain in Toronto were built by European settlers. So in nearly every neighbourhood, you’ll find beautiful old century homes that still carry their original beauty but require some renovations. This makes Toronto a home flipper’s dream. Buying an older, fixer-upper home and renovating it for profit has made many people wealthy here. But there can be losses if you don’t pick the right property in the right neighbourhood, which is why it’s important to talk with a professional in the industry who knows where the best opportunities lie. If you’re looking to invest in a property in Toronto or Greater Toronto Area, contact us at Medallion Capital Group. We can help evaluate your goals and find the right investment options for the highest return, and even manage your property for you. Contact us today!