Real Estate Investments in Toronto, Canada

There are many buyers and sellers in Toronto who want to make their fortune through real estate investments.  Are you one of them?  If not, then you should be!  Why?  Because currently the real estate market is booming and will provide you wonderful returns for your handful of investments.   Historically looking at the last couple of decades investors have hugely profited from buying, selling, renting and flipping properties in Toronto.

Real estate investments should have long term objectives rather than short term.  It is much more difficult to predict the market on a short term basis and gain profit from it.  You may wish to start with a slower more conservative longer term real estate investment before taking on a higher risk, shorter term  flip style real estate investment.  The more experience you have the better the results.

Below are the some strategies that can be used to invest in Toronto’s real estate market.

1.       Buy à Rent à Sell:

This is the most common form of investment in real estate and by far the most secure style of investing in real estate.

One can consider a condo or a freehold house style investment property.   A preferred area is key.  This property can be bought with a 20% down payment and also depending on your own personal financial history there are other scenarios for financing.   Having a good mortgage broker who understands investment property strategies is very important.

Toronto/GTA offers condos ranging from the low $200K to Millions $.   Houses range in price from 350k and again up into the millions.

Both houses and condos have appreciated over time so the investor is being rewarded in a couple of different ways.  The mortgage is being paid by the tenants, the costs of the home are covered by the rent and due diligence in advance to select a revenue neutral or positive  cash flowing property is important before buying and as well the investment is growing each year as the market continues to climb.

The rental market is such in Toronto as the vacancy rates are rather low and finding a good tenant is very probable.  A prudent landlord will wait for a good tenant.  The rent varies from location to location and entails other variables as well.    Rental rates vary from 750 for a lower level self contained unit to up into the thousands, all dependent on neighborhood, style of housing etc.   Real estate has historically appreciated over the years offering more than the returns achieved through the stock market.

There are advantages and disadvantages to selecting condo vs. a house but each one has great merit for consideration.   Perhaps starting with a condo is an option which may be easier to manage for the first time investor.

 2.       Flipping:

This concept is used a lot in the current Toronto real estate market. Just take a drive down any city street and you will see the signs of construction and renovation taking place along the streets.

Flipping houses simply refers to buying a rundown house and renovating it for a profit in as short a time frame as possible, usually months.   This can turn out hugely profitable.  A

proper flip in a good neighborhood will be in high demand because buyers want fully renovated houses and thanks to low interest rates and affordability can afford it.  This investment is more of a gamble if not played properly. Flipping for profit is not for the faint of heart.   Renovations often take more time and money than expected, not to mention know how.  A good tip for investing in flipping is make sure you work with a very good and experienced Realtor who knows the house prices in the neighborhood you are considering .  Make sure you buy the right house, make the right improvements, invest right amount of money and sell it at right time.

It is not impossible to do and the rewards can be very good!

 3.       Investing in New Construction:

The last but not the least strategy is to purchase a condominium in a pre-construction phase off plan, rent, hold 1 to 2 years and sell.  Many investors buy the condo at the very initial phase of the project construction for the most favorable price per sq.ft. and sell it after its completion at a much higher price per sq.ft. than what they bought a few years previous (3-5 years). The main disadvantage of this investment strategy is that if the market does not continue to go up as per the investor’s expectation, then he may not make huge profits expected.  Selecting the right unit layout, the right time at the very start of the project and the right location will certainly provide benefits for the investor.  Once again pairing with a good Realtor to get in to the project as early as possible and also assisting with the right clauses and helping with the best layouts is very beneficial.

There are lots of opportunities as an investor in Toronto’s real estate market. Investors should evaluate their investment options to maximize their returns. To gain the maximum profit in Toronto’s real estate investments it is highly advisable to invest with the assistance of a really very good Realtor who knows the pros and cons of such investment strategy and help clients  in maximizing their profits.

townhouse, toronto

Casaloma neighborhood House


apartments at CN Tower

Condos at CN Tower

Toronto city from islands
Panoramic view of Toronto City

2 Responses to “Real Estate Investments in Toronto, Canada”

  • Sandra McAleese:

    You make a very good point and easy to understand. Curious to know if you have any associates in the Burlington, Ontario area? I am looking at a condo building pre-construction called “JAZZ” by Branthaven here in Burlington. Any comments?

    • Hi Sandra,

      Sure I can assist you in getting a good deal for JAZZ condo. Kindly provide your contact details I will contact you and provide the further information regarding this pre-construction condo building. You can directly contact me if you want at my desk number as per my below signature.

      Luci Rizzo

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