Investing in New Condos: A Guide for Toronto Homebuyers

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Toronto is a vibrant metropolis with a thriving economy, multiculturalism, and a growing real estate market. It has recently become a place with the potential for a high-quality life, making it a favourite among homebuyers, leading to an increase in the construction of towering condominiums and residential properties. This dynamic environment is evident from the increasing demand, competitive bidding wars, and innovative urban development projects in Toronto. 

Keeping all of this in mind, investing in the real estate market in Toronto in current times is a rewarding opportunity. Considering market trends and preferences, condos are currently the best way to invest for someone seeking to grow in the real estate business. This article discusses why investing in new condos is the best choice for home buyers. 

Advantages of Investing in the Toronto Housing Market:

Toronto is currently the hub of real estate in Canada, and investing in such a place is profitable in the long run. Here are three advantages to investing in the housing market in Toronto. 

  • High Equity Gains: 

According to estimates, the prices of condos have risen by an average of 6% a year in Toronto. That means that the people who bought a condo in 2017 for $550,000 can sell it for a profit of $42,000 in 2024. These high equity gains prove Toronto to be the best place for property investment, with fewer chances for loss.

  • Increasing Demand for Rental Property:

With the growing population, the demand for rental properties in Toronto is also increasing. In such a situation, people who buy condos and rent them to others can earn more profit. That is because the demand for housing would compel them to buy or rent a residence, even if the prices are high. That is one of the advantages that sets the real estate business in Toronto apart from other places. 

  • Stringent Lending Practices:

The real estate market in Canada has guidelines for investment with a low delinquency rate and a tiny loan default rate. Therefore, buying a property in the current times is a safe long-term investment with a promise of future gains. 

Considering all these benefits, Toronto is the best option for a person who wants to invest in real estate because of its high residential demand. However, why a person should prefer condos over detached homes for investment is the question that arises next. Let’s take a detailed look at it.

Why should condos be your choice?

  • Comparatively Affordable

Buying a condo is beneficial because of the lower initial investment cost you have to pay. Condos are comparatively cheaper than detached or semi-detached houses. Therefore, anyone, from first-time buyers to professionals in real estate, can afford them.

  • Lower maintenance charges:

Another benefit of a condo is its lower maintenance cost than other properties. That is because most maintenance charges are covered either by condo fees or reserve funds. To explain the costs, below is a tabular comparison of different maintenance charges for houses and condos. 

Maintenance costs Condos  Detached Homes
Exterior maintenance $100-$300 per month $200-$500 per month
Interior maintenance  $50-$150 per month $100-$300 per month
Common area fees $100-$500 per month $200-$450 per month
Structural repairs  Covered by insurance and reserve funds $1000-$5000 per month
  • Rich in Modern Amenities:

Newly constructed condos contain all the modern features and amenities that are preferred by home buyers these days. From fitness centres to roof terraces, these amenities enhance the overall living experience, thus making condos the best choice for anyone looking to invest in Toronto real estate. 

  • Potential for Higher Appreciation:

Because of Toronto’s ever-evolving real estate market, investing in it has become a means of earning more. Therefore, purchasing new condos in favourable locations can yield a lucrative return on your investments in the long run. 

Step-by-Step Guide for Investing in Condos:

Considering the above benefits, homebuyers who want to invest in condos can follow the step-by-step guide below.

  • Thorough Research:

Before deciding to invest in a condo, conduct thorough research on the real estate market, current trends, and dynamics. 

  • Visit Model Units and Showrooms:

It is good to get a firsthand look at the features and finishes offered in the condo development before making a deal. Therefore, visit the model units and showrooms to assess these things while paying attention to the layout, design, and construction quality. 

  • Consult a qualified real estate agent:

Real estate agents experienced in condo development can help you throughout the purchasing process. It is also beneficial to visit online platforms like G1 Homes for knowledge and guidance on investment. 

Investing in new condos is a perfect opportunity for Toronto homebuyers to secure affordable living spaces with low maintenance charges. Following the above steps and seeking our professional guidance can help you secure a profitable deal with the potential of a complete return on investment. 

 FAQs:

  • How much does a condo cost in Toronto?

The average price of a condo in 2024 is estimated to be between $700,000 and $720,000. 

  • What is the average condo fee in Toronto? 

 The average condo fee in Toronto ranges between $0.50 to $1 per square foot.

  • What is the Condo appreciation rate per year in Toronto?

On average, the appreciation rate for condos in Toronto is between 4-5% per year.

  • What is the best time to sell a condo in Toronto?

Based on the estimated profits, spring and summer are considered the best seasons to sell properties in Toronto.

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