- Real estate investing is not for the person that expects to have a high rate of return in a very short period of time, excluding certain property valuations based on near-term market conditions and future buyer eagerness
- Real estate can be a short-term or long-term investment choice for my clients and I carefully look at each property and evaluate their investment choice with their expected ROI
- A real estate investor’s return on investment (ROI) can vary greatly according to the location, style of home, type of unit, size of unit and the local neighbourhood amenities and area build-up
We see this with every Toronto Real Estate Board monthly sales report and smart investors understand that the averages reported do not tell the whole story.
Detached homes in Toronto have shown an exceptional average ROI but for every property sold at the upper end there are an equal number of homes that sold below asking or not at all.
Likewise, pre-construction condo investors need to look beyond the average resale price and take into account the high ROI that can be realized when the unit is rented out or the building comes to occupancy and there is a high demand for the now-completed units.
Rented condo units are a step above the standard apartment rentals in Toronto because of the building’s included amenities. They also receive a premium rental price because of what I look for and what my featured builders put into their buildings, such as pools, terraces, fitness rooms, parking and so on. This greatly raises the expected ROI and the property also appreciates nicely over time.
As reported by the REMI network “Factors supporting rental demand include: rising cost gap between owning and renting, an improving job market and rising international migration. Improving job markets, a rising cost gap between owning and renting and rising international migration will support rental demand across the province.” – see graph here
When I look for pre-construction projects to bring to your attention, I look carefully at the reputation of the builder, the location of the development, and who the potential owner/tenant/resident may be.
I take into account the lifestyle of the anticipated owner or tenant to find the most desirable locations and, most importantly of all, the most desirable units within these developments.
Most of all, I look at the market and the property and bring to you the investments that I expect to have the highest return on investment potential.
As I look into the future growth of Toronto I see several indicators that tell me investing in real estate in today’s market has never been a better opportunity.
- Exceptional property value increases across the Greater Toronto Area and moving east, west and north into the communities ringing Toronto
- Forecasts of population growth and employment stability that ensures steady demand
- The long-term outlook of low interest rates to continue the demand into home ownership for first-time buyers and those that are “moving up” into larger homes
- Continued investment by local, provincial and national governments making Toronto and Ontario and even greater place to live
As an investor in pre-construction low-rise and high-rise homes you are at the forefront of opportunity.
Whether you are looking for a place to call your own or as a managed property to create a stream of wealth, the opportunity has never been greater.
I continue to research and meet with builders across southern Ontario and can confidently tell you that the needs of real estate investors and home owners are the driving force that will see exquisite properties continue to be built that will drive sales and investment.
And the return on investment you seek.