Most people understand that owning real estate is a wise lifestyle and financial investment. Whether you are a first-time buyer or a seasoned real estate investor looking to expand your portfolio, consider purchasing a condominium suite in Toronto. The average condo asking price in the 416 area code in 2011 was $555,268; in 2020, it is hovering around the $1-million mark. You don’t see returns like that with many other investments, unless you bought GameStop recently.

When condo shopping, take into consideration location and value (if you’re an end-user, make sure these align with your living needs). When it comes to location, you cannot go wrong with buying along a transit line – these projects are the highly sought-after ones, especially with the price of parking and limited availability on the rise. Also look at the value; what is the price of each project in the location you are looking at compared to one another? How high is it now, and how high can it go when it is built?

Help with affordability

Let’s look at The Dylan Condominiums in North York – only a three-minute walk to Glencairn subway station, a 15-minute drive or five subway stops to York University, a few blocks to the Eglinton LRT, a three-minute subway ride to Yorkdale Shopping Mall, five subway stops to the St. George station and only 10 minutes to Downsview Park. This location is spectacular enough to command high rents. North York is one of the fastest-growing regions of Toronto and a place where growth is expected to continue for decades – which means high price appreciation. The Dylan is already one of the lowest priced projects in the city, at $1,000 per sq. ft., compared to other projects in Toronto that are selling for between $1,400 and $1,600 per sq. ft.

To help with affordability, check out the Government of Canada’s First-Time Home Buyer Incentive, Home Buyer’s Plan, GST/HST New Housing Rebate, and Home Buyer’s Amount of up to $750 in federal tax relief. In Ontario, a rebate on some of the required land transfer tax is possible.

Pool resources

You could also pool your resources with friends or family members, so each person’s deposit amount is lower. Say two people purchase a one-bedroom plus den suite at The Dylan Condos for $623,900. Each would put down $1,500 on signing; then the balance to five per cent in 30 days ($14,097.50 each); then increments of three per cent (or $9,358.50 each) every six months; then one per cent ($3,119.50 each) on closing. This amounts to $65,509.50 for each of the two buyers, but spread out over three years. If a third buyer is added, those amounts go down substantially. Plus, if you consider seven per cent year-over-year appreciation, that condo will likely be worth more than $1.1 million in 2030.

Investors can refinance an existing property, sell a newly purchased condo one year after closing and use the equity to do it over again, or put the deposit on a Line of Credit. The point is, there are numerous ways to get into or expand your real estate portfolio. Do some creative thinking and a little research, and you’ll figure out the best solution for you.