Best Condo Investment Areas in Toronto
What are the best areas to invest in a Condominium in Toronto? We have broken down the answer to 3 different areas based on 3 different levels of maximum budget which are $500,000, $600,000 and $700,000.
Firstly, and probably he most important aspect of real estate investment is understanding leverage, meaning getting the bank to invest alongside with you. So, at the end of the day you are using as much leverage as possible. The majority of the money for a real estate investments by most condo investors is from the bank and can typically be has high as 80% of the total amount spent on the property. So, when we talk about a budget of $500,000, $400,000 of that amount actually comes from the bank and you are therefore only using $100,000 of your own money for that condo investment.
In order to keep this analysis simple, we are only going to focus on the price of a 1-bedroom condo. So let's start with the smallest investment level of $500,000. Where should you buy in the greater Toronto area GTA looking at all the individual 25 municipalities. The rationale for this answer is as follows. 1. The younger generation is shifting to a car less or cashier lifestyle, so it is crucial to ensure your investment in this category is close to the Toronto subway line. There is really only 1 municipality outside of City of Toronto that is accessible by the subway that has condos within this budget limit and that is Vaughan Metropolitan Center. The subway extended to this area on December 17th, 2017, the KPMG commercial power is now well in operation and numerous condo towers around the station will be ready for occupancy in the coming year. The city of Vaughan projects that by 2031 the new Vaughan downtown will have 25,000 residents and employment for more than 11,000 people. This new subway surrounded development will open up a lot of opportunities for growth and appreciation.
Next let’s move to the last move on to $600,000 budget level. The area we I recommend is Midtown Toronto and by Midtown we mean either North York or Yonge and Eglinton. Both of these areas are already pretty well-developed with a lot of neighbourhood amenities and existing condo towers. This area still has lots of ongoing and future planned developments.
Lastly, if you can afford $700,000 downtown is still the best place to invest in a Condo because of 1 reason... it’s where all the jobs are. World class companies are located here, 3 large universities, numerous hospitals, shopping centres and restaurants are all located downtown. Downtown Toronto is also where you will find the highest density and housing demand in Canada. In this area it’s all about scarcity of land. This means high prices are abundant for anyone holding a piece of land in this area. If you can still find something within your budget in the downtown area you should snap it up as fast as possible.
If you are looking for any assistance with getting into real estate investing, we are always here to help, with no obligation. We have over 30 years of experience in investing in both homes and condo’s in the GTA and are more than happy to share with you our experiences and learnings from over the years.