Owning a property in Toronto is the dream of many people. The region is well-known for its rapid economic growth and the cozy environment. When you have a unit, you can either live there comfortably or turn it for commercial purpose. Either way, the real estate there is very promising.
If you are excited about the idea of owning a property in Toronto, then you can start by considering to buy a condo unit. Houses in the region are already exorbitant. Unless you are willing to spend $1.3 million something on a detached home, you should find another real estate type.
Why a Condo Unit?
Besides condos being the most rational and affordable option of real estate investment in Toronto, their prices were proven to increase by 20% relative to the housing market in 2017. It is a likely number if you want to make income out of the property.
Second, getting tenants for a condo unit is easy in Toronto. You are guaranteed to make an income of at least $1000 per month. According to CBC, one bedroom plus den in the city costs $1800. It is big money if you consider the low maintenance expense for a condo unit.
Getting the Right Location
Before you buy a condo unit for investment, you must consider the location first. For instance, the King neighborhood is prospering and thriving from the commercial growth. And in the area, several condo projects are still in the construction progress. In the next ten years, the King Street will be comparable to the famous Soho of New York City.
Location can contribute to the condo’s rent value and appreciation rate. Areas with few businesses have affordable units but are bad for investment. If you want to purchase a condo unit, you should pick a location like the King Street.
Resale or New Build Condo?
Both resale and new-build condos have advantages. Resale condos can get you quick revenues since you can rent them immediately after you own them, but you may need to make some improvement first. Buying a resale unit that is in tip-top condition is less profitable because it often comes at a high price. If you buy the one that needs some renovation, you can push the repair budget and improve the house while renting it at the same time.
New-build condos are a long-term investment. They usually give you a lenient installment and allow you to own a unit that will be ultra-expensive in the future. In the King Street area, the Well Condos are currently under construction. If you are interested, you can check the price list for The Well Condos so that you can calculate whether investing there is profitable or not for you.
Evaluating the Amenities
Condo units have shared amenities like swimming pool, park area, gym, jogging track, parks, etc. They belong to all unit owners in the condo, which means that there will be maintenance costs for you to pay. Therefore, you should mind the amenities carefully to see if they are relevant to your need. You must not end up paying for some facilities you/your tenant never uses.