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Toronto – the heart of the GTA and home of some of the greatest attractions the province has to offer. From major attractions to a surplus of dining and nightlife spots, it’s no wonder more and more people are considering moving to Toronto. While the city boasts beautiful houses throughout, the consideration for a condo remains at an all-time high for those looking to rent within the city. The downtown core is saturated with condos and many are in development, making them the best option for renters who want to live in the heart of the city. For investors, the condominium market in Toronto holds a plethora of benefits. If you’re looking for your next investment venture in Toronto, a rental property management company can aid in, not only closing in on the opportunity but maintaining and optimizing it thereafter.
With that being said, what makes Toronto’s condominium market such an in-demand sector for investors?
A highly-profitable market
Cascading down the streets of Toronto in 2019 is significantly different than it was a decade ago. While Toronto has always been the home to sky-high buildings in the downtown core, most were strictly business-related buildings. Nowadays, it’s nearly impossible to walk down the street without spotting a condo; whether already up and running or in the process of being built. Why have they become so prevalent over the past decade? Simple – demand. And like anything, when demand is high, there is profit to be made.
In demand markets are grounds for competition and prices reflect just that. The higher the demand, the more people are willing to fork out to get exactly what they want. Toronto has seen a drastic increase in the cost of housing, with the average one-bedroom condo going for a whopping $2,250 a month. Despite the rise in price, the demand remains high, especially for newcomers to Canada who seek out the best plausible place to reside.
Albeit, the initial investment into a condo property is costly, the ROI (return on investment) is significant, providing tenants are happy.
Lower risk level
A huge factor that can impede on ones decision to invest is the risk. With every investment there is a chance to make money, however, there is also a chance that profit will be lost. Real estate investment is typically a lower risk investment when compared to the stock market or trades, for example. Although there is risk associated, it’s nominal in comparison. With the help of knowledgable rental property management, risk can be further reduced by ensuring those residing within the rental property remain happy and demand is met.
Fluctuations in the market are seen from time to time, however, the real estate market has remained steady over the years, correlated to the higher demand. Investing in a Toronto condo imposes little risks alongside high-profit margins for investors.
Timing is right
Timing is a key component when it comes to investing. Diving into the Toronto real estate market now spells good news for potential investors. With vacancies low, interest rates even lower, and demand at an all-time high, the stars align. The wait time for vacancies within a condominium begin to increase and the market is in dire need of new listings that will take little to no time to fill.
An influx of new residents to Canada is a huge contributing factor to the current demand and as the weather warms, more individuals are making their way to Canada in search of a place to call home. Coupled with a significant decrease in interest rates, entering the market now is ideal for potential investors.
Every investor is different. Some prefer short-term, high-risk investment whilst others prefer low-risk, long-term investments. Investing in a rental property is a long-term investment which is good news for those looking to generate profit over a longer period of time. Due to the length of these investments, it allows for profit growth over the years.
A common concern notable amongst real estate investment and it’s correlation to longevity is the consistent commitment. Real estate investing isn’t a “set it and forget it” type of investment, however, it also doesn’t require around the clock care. Property managers can aid with aspects of the investment that may be time-consuming and stressful for the investor. For example, property managers aid in finding viable workers (plumbers, electricians, etc) that contribute to the overall maintenance of the building – keeping tenants happy and any arising issues resolved in a timely manner. Property managers also aid in the collection of lease/rent payments to ensure nothing slips between the cracks. Working in unison with an investor, property managers ensure production runs swimmingly and investors don’t have to dedicate all of their time and effort into their investment.
For those looking for a new investment opportunity and perhaps considering diving into the real estate investment world, now is a better time than ever to expand your investment portfolio. The city of Toronto continues to grow and the demand for a place to reside within the liveliest city in Ontario is at an all-time high. An investment in this realm will not only provide you with profit growth, but it will also provide someone with a place to call home.
Interested in investing in a condominium in one of the most sought after cities? Contact us today and we will work with you and your investment goals!