Why Should You Invest In Toronto Real Estate?
Toronto is a bustling city with a lovely skyline. So many construction projects are currently underway, and the real estate market certainly reflects that. With so many new developments popping up, it can be hard to keep track of which are coming out when. Here are a few of the most notable upcoming condominium projects.
In Toronto’s downtown core, there’s been on increase in demand for condos since the 2008 recession – this was due to a shortage of new units in Toronto and an increase in rental vacancies elsewhere due to high demand from tenants looking for affordability and convenience (TPR). In New York City during this period, rental vacancy rates fell by 50% (TPR). In Toronto, the average rate of condos being sold was up by 56% in 2013 (Huffington).
As downtown Toronto continues to grow, there has been a consistent five-year trend of new condo developments – which is estimated to grow by 80% over the next 10 years with over 75,000 new condo units expected to be built in Toronto by 2020 (TTC Report). Buildings in the Financial District alone are expected to be more than double their current height by 2032 (TTC). Condos are seeing average price gains of 120% over the last 10 years, and with more development underway now than ever, it’s safe to say that this will continue.
Average Condo Price for Toronto in 2021
The average condo price for Toronto in 2021 is estimated to be $359,000. This will vary depending on the area, whether it’s downtown or suburban. Within the next year, condos in Toronto are expected to be worth just under $360,000 on average. The price of a home will change depending on the area in the city and whether it’s located in a high growth area.
Currently, downtown Toronto real estate has an average selling price of $430,000 for one bedroom condos and over $500,000 for two bedroom condominiums. Most new projects are taking place in the downtown core (TTC Report).
As this is a growing trend, there are many new projects in Toronto that have been announced recently and will be available for sale soon. The most notable buildings are:
The One – A new luxury condo tower by Mizrahi Developments & Graywood Developments. This building is designed to have 84 floors, with a total of 1,361 units. Most units will be one bedroom condos, with a limited number of two bedroom condominiums.
This price is projected to rise by 28% with the average salary of an individual in Toronto being $61,000 annually (TTC Report). The One King West – A boutique skyscraper designed by Kohn and HollADecker Architects. This building will be located on King Street West. It will feature a lobby, lounge, connecting bridges, and retail space at the base of the building (TheOneKW).
Toronto is a multicultural city with over 5 million people. It also includes the second-largest Chinatown in North America. Toronto has been playing host to many international events such as the 2010 Winter Olympics, but its biggest cultural draw remains its theatre scene.
One of Toronto’s main features is that it is one of North America’s most diverse cities, hosting more immigration than any other city in Canada or the United States (TPR). The city has a rich history and culture that came from the blending of immigrants and indigenous peoples which makes Toronto one of North America’s most diverse cities (TPR). There are many different cultures represented from all over the world in Toronto. Toronto is one of the safest cities in Canada and has had the lowest crime rate in Canada for over 10 years (TPR). Toronto also ranks as one of the world’s most livable cities, with an annual index rating of 7.3. It is home to the tallest free-standing structure in The Americas – the CN Tower – and is easily accessible by mass transit with countless subway, streetcar, and bus stops throughout Toronto (TTC Report). The economy in Toronto has experienced a few changes over the years, but there are many factors that remain consistent. The long-term outlook for Toronto condos has been positive with a stable real estate market. Between 2000 and 2011, household income in Ontario grew by 44% (Lloyd’s).
Toronto Accessibility/Getting Around
Toronto’s accessibility is good with a variety of modes of transportation available. Toronto has one of the world’s best public transit systems, and most major destinations in the city are less than 30 minutes away by transit (TTC). The subway systems in Toronto is called the TTC and is one of the busiest subway systems in North America carrying 1.5 million passengers daily (TTC). There are over 1,000 buses, streetcars, and subway cars on the roads. In the summer months from May to September there are also more than 500 “streetcar” stops and bus routes that service Toronto residents (TTC).
Toronto also has an extensive network of bicycle lanes that provides a fast way to get around the city. Other accessible transport options include taxis and cars-for-hire. Metrolinx provides services under the GO Transit umbrella, which includes commuter trains, buses, and regional rail within the province (GO Transit). GO trains also link Toronto to the world, with destinations such as Vancouver, Montreal, Ottawa and New York City. In addition of these options, taxis are available in Toronto. To get around this vibrant city without a car is easy using just a transit pass or bicycle.
Which part of Toronto should I invest in?
Toronto’s real estate market has been strong for the last few years, and with the selection of projects in this article, it will continue to grow. To decide where to invest, you need to consider what your goals are. If you want a place that is close to the downtown area and has a great view of Lake Ontario, One King West would be a good investment. On the other hand, if you want a condo with lots of space and don’t mind sharing your home with others, then The One would be a good option (TTC Report).
How can I profit from the Toronto condo real estate market?
The first way of investing in the Toronto real estate market is to buy a condo that you would like to move into. The downside about this option is that you are buying it at the market value, which could be higher than what you are willing to pay. You will need a sizable down payment, and your monthly payments will be high because of interest rates. This type of investment can take years before it becomes profitable (TTC Report).
Another way of investing in the Toronto real estate market is buying already completed projects for rent purposes. This is beneficial if there are many people looking for rental accommodations in the city, because you will have an easy time renting out your properties (TTC Report).
Will I be safe in a Toronto condo?
Toronto is one of the safest major cities in Canada. It has had the lowest crime rate in Canada for over 10 years, and ranks among the world’s most livable cities with an index rating of 7.3 (TPR). One of Toronto’s many strengths in safety is that it has a very low unemployment rate, ensuring stability. As well, it has one of the best public transit systems among all major North American cities (TTC).
Toronto has a reputation as being unsafe because there are parts that have higher rates of crime like Scarborough/North York and Downtown Eastside. These are not parts where average people would visit or live however; they are simply areas to avoid if you don’t want to be victimized by criminals
How much is the land transfer tax in Toronto?
There is a land transfer tax in Toronto. The rate is different depending on when you buy the property. Under the current provincial law, there is no minimum land transfer tax if you are buying your primary residence for less than $400,000. According to the Ontario Ministry of Finance website, an average land transfer fee would be about 4% of the sale price. If you decide to sell your home for a price greater than $400,000 in 2021, then according to the Ontario Ministry of Finance website, an average land transfer fee would be about 4% of the sale price. It also states that this fee may change as new laws come into place and could be worth up to 8% of the sale price (Ontario Ministry of Finance).