The simple answer is yes, of course you can still invest in condos in the GTA real estate market. While it might be the case that this might be unreliable coming from a realtor who makes commission on sales – let me elaborate.
In my opinion, condos can STILL increase in value, because there are increasingly more factors that are pricing people out of the detached home market.
While you might see a detached or semi-detached or freehold townhome for sale within the same price range of many new or full equipped condos, the cost of maintenance is the same. As an investor, time spent on renovation and on a mortgage and taxes are all factors.
When you buy a brand new, fully equipped condominium, you can often recover much of your costs through a rental. The fact is, a well positioned condo actually does go for a lot more per square foot than a home in today’s rental market.
We can refer to markets that have matured in the past few decades to notice that rentals within the downtown core or in transit hubs tend to yield the best return. After all, if you are investing in condos: you want to minimize your expenses from day to day.
If you have a certain budget, you must factor in all your other expenses. In terms of investing in stocks, you have an option of putting your money into extremely low yield funds. In the case of a home, you might have unsustainable carrying costs associated with maintenance!
This is all contingent on your budget, however, at any amount: condos offer a relatively high and consistent return on investment. We can’t speak about an investment as something that you might fall back and live in or worse: have to liquidate in an untimely fashion. Knowing your limits and mitigating your risk is essential to being a wise investor.
That said, if you are planning on investing: there are plenty of suburbs that offer a very low upfront cost to buying into condominium buildings. You have to acknowledge a lot more buyers (contrary to what you might have heard) are end users.
They are organic and fundamentals that you have heard so little about. People always need a place to live and we should address them with appropriate dignity. When it comes to discussions of investing in condos: they are often ignored.
As an alternate strategy: you can take a look outside of the greater Toronto area too at some new exciting projects such as Rockwell Estate Residences. It’s a unique opportunity to take advantage of pre-construction investing from another angle that is worthy of consideration.
If you want to learn more or have a specific question about how you can invest in condos in Toronto and the GTA, give me a call! I’d be happy to offer my expertise in successful investing for my clients.
We have a reliable and adaptable condo investment strategy that really can’t be beaten. Whether you wonder: is it a good idea to buy a condo to rent, or you need Toronto real estate board data to compare for your own personal plan: you can give me a ring anytime, fill out a contact form or find me on social media!