7 Proven Tips for Purchasing the Best Toronto Condos

The condo market in Toronto is growing at a rapid pace. The demand for condos is high while the vacancy rate is quite low. Competition between buyers is stiff and rent has increased drastically especially when you compare it to the last few years. The average appreciation rate of 5-6% also makes it a lucrative proposition for long term real estate investors. This is the reason why many investors are showing interest in investing in Toronto Condos.

If you don’t know where to invest your money in 2019 then, investing in Toronto Condos might be an ideal choice. Are you thinking about how to purchase the best Toronto condos for investment purposes in 2019? If yes, then you are in the right place. In this article, you will learn about some effective tips that will help you in buying the right condos for investment this year. Read on to find out more.


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1. Set Your Goals

What do you want to achieve with your Toronto condo investment? This is the first question you should ask yourself before investing your money in Toronto Condos. The higher interest rates and the growing condo market in Toronto make it extremely difficult to find investment opportunities that can deliver positive cash flow. If you want more cash flow out your investment, you should look for real estate properties with higher resale value.


If equity gains are your priority, you should think long term, more on that later in the article. Invest in properties with high resale value or pre -construction properties and be patient as prices tend to increase substantially over time. Long term investment in Toronto condos can deliver the best equity gains.

2. Decide On A Budget

Before investing in condos and lofts in Toronto, ask questions like how much money are you willing to spend on condos and how much mortgage you can afford to carry? This will help you to decide on which type of property you should buy. Apart from down payments, you should also consider closing expenses which include land transfer taxes, HST and more for pre-construction condos. All these expenses could add up and could exceed your budget if you are not careful in the first place.


3. Buy In Winters

Spring and fall is the peak season for the real estate industry. That is when many condo owners tend to sell their properties to take advantage of the surge in price. With more properties up for sale, it gives sellers an advantage. If you are planning to purchase a condo then, winter is the best time. All you have to do is keep looking for best deals during winters and you will surely find one. Search condos in Toronto for sale from December to February and purchase during this time to get the best value for your money. With fewer buyers around during winters, you can convince sellers to sell at a lower price too. Additionally, some sellers don’t want to wait till spring and fall to sell their properties, which can also go in favor of buyers.


4. Look For Gentrifying Neighborhood

For those investors looking for higher equity gains, pre-construction property is a better bet. Instead of buying a pre-construction property in the established locality, you are better off choosing an upcoming neighborhood. Investing in gentrifying neighborhoods allows you to charge premium for rent as there is less rental options available. Leslieville is the best example in this regard. Prices of real estate in Leslieville have increased by 50% since 2014. Look for real estate opportunities in newly established localities. You can easily find some more similar localities around Toronto and other cities as well.


5. Think Long Term

If you are one of those who see their Toronto condo investment as some “get rich quick” then, you will be disappointed. Instead of chasing quick gains, you should think long term with your Toronto condo investment. Overtime, the value of your real estate property will surge and the more equity you can amass. You can also put the additional equity to good use by making future investments. The longer you hold your condos, the better it is for your finances. You can even consider borrowing some money to invest in condos and it will deliver a higher return on your investment.


6. Charge Premium In Rent

There is no point in investing your money in real estate if you are not going get a good return on your investment. Similarly, investing in real estate property is useless if you cannot charge premium in rent. Always invest in condos that allow you to charge a higher price in terms of rent. Location, future infrastructure development and floor plans along with other property features impacts the value of your property so when you are buying a real estate property to rent out, make sure you keep an eye on these features. This will determine how much money you can ask for in terms of rent.


7. Never Delay Your Purchase Decision

When it comes to buying a Toronto condo or any other real estate property in the city, you should never delay your decision too much. The sooner you purchase the better as the property value and prices go up with the passage of time. Remember, timing is everything. The exponential price growth in Toronto real estate market means that the money you have today is worth more than tomorrow. Don’t wait too long for getting the best deal as the prices continue to go up. Soon, you might not even afford to purchase the same real property which was once in your budget. Buy quickly, hold it for long and capitalize on the equity gains is the way to go with real estate properties in Toronto in general and Toronto condos in particular.


Which is the best tip you have ever received for purchasing Toronto condo? Feel free to share your favorite tips with us in the comments section below.