Prebuild Condos in Toronto – It’s All About Location!

Prebuild Condos in Toronto – It’s All About Location!

Prebuild Condos in Toronto – The Value of Location

There’s no question that Toronto is a hot market for condo investment.  And, as the old adage states: it’s all about location, location, location. For the condo purchaser who is making an investment in real estate, the downtown offers a huge pool of eager renters. Toronto has two giant universities in its core, Ryerson and University of Toronto, along with a number of colleges and other educational institutions. This translates into thousands of students needing accommodation. In addition, the booming economy of the city attracts thousands more who want to live in close proximity to their jobs. Vacancy rates are extremely low. Units don’t stay empty for long.

Purchasing in the city means paying a higher price per square foot similar condo in the suburbs. But the proximity to schools, jobs and Toronto’s vibrant cultural and nightlife also means higher rents can be charged.

A Few Words of Caution...

It is not the wild-west, however, when it comes to condo investment. There are restrictions on rentals, and tenants must abide by all the rules and regulations set by the condominium corporation. There are Tenant Boards to deal with, and a management team that looks after the security and care of the building. But they are primarily looking after what happens outside your unit. Barring flagrant misuse of the unit (noise, Air BnB’ing, etc.) what goes on in your unit by tenants still requires your vigilance.

Beware of surprise expenses. This begins right at the time of purchase - remember the Land Transfer Tax. Toronto’s tax is higher than that of the suburbs. You can estimate your taxes using the Toronto Real Estate Board’s Land Transfer Tax calculator.

Also, what is the situation with building amenities? How will this affect your ongoing maintenance costs? Those charges on a pre-build purchased condo should remain low, in the short term at least, because the building is new and shouldn’t require much in the way of additional work.

What is your end goal? Condos are a good investment, and can generate a cash flow. However, long term appreciation is historically better on freehold homes, in the long term.

Engaging a Condo Real Estate Agent

You need an agent. An experienced condo agent will know the buildings in the area you’re searching, and be able to advise you on any hidden pitfalls. But, as with any professional relationship, a successful realtor-investor partnership is one of chemistry. A few things to watch for:

  • First and foremost: how good is the communication with your agent. Are your calls returned promptly? Does the agent keep you in the loop? Will the agent adapt to your preferred means of communication? Be it email, text or "old-fashioned” phoning.
  • Does your agent listen to your concerns and wishes? The amount of choice available in pre-built condos in Toronto is bewildering, and every building will have its positive and negative attributes for your search. Some of them you’ll know – other information will hopefully be supplied by the agent.
  • Is the agent willing to give you their most recent clients as references? Not clients that have been cherry-picked over the years – but the most recent ones.  

Buying pre-build condos in Toronto is a big step – but one that can also bring great rewards.

Sushma Khinvasara is an award winning real estate agent with the expertise necessary to help buyers and sellers of all levels successfully navigate the fast-paced market in the GTA. She has consistently been recognized as a top performer for her brokerage, as well as Century 21 Canada, with a wealth of expertise in the following areas:

  • First time home buyers
  • New residential properties
  • Property leasing
  • Investment properties

Contact Sushma Khinvasara today to discuss all of the benefits of purchasing a Toronto condo as a living space or as an investment property. Discover everything this exciting area has to offer and find the unit that is perfect for your specific needs.

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