Prebuild Condos in Toronto – The Value of Location
There’s no doubt that Toronto is currently the hottest market for condo investment in the country. The top reason is, location. For those investing in condo, the downtown area guarantees low vacancy rates because of many renters looking for a place to stay. One reason is that the city is attracting thousands of workers and it’s for sure they would want a place near their work. Adding to that are the students from top universities, the Ryerson and University of Toronto, as well as other colleges and educational institutions.
Even though it would mean that buying a condo in the city means paying more compared to suburban prices, the nearness to schools, jobs and the high-spirited nightlife means you can also charge more on rents.
A Few Words of Caution...
In condo investments, there are a few things to remember. First, there are restrictions on rentals and second, there are rules and regulations set by the condominium corporation that a tenant must follow. The Tenant Boards and the management team can take care of what’s happening outside your unit such as security and care of the building. But for the inside of the unit, it’s up to the tenant. That means, the tenant has the responsibility of checking on the unit and the renter in a reasonable interval.
Also, there might be unexpected expenses such as the Land Transfer Tax which is higher than that of the suburbs. You can estimate your taxes using the Toronto Real Estate Board’s Land Transfer Tax calculator.
How about the situation with building amenities and its maintenance costs? At first, you can expect low maintenance costs in a pre-build condo since it is still new, but will likely increase in the long term. Basically, condos are a good investment and it can generate a cash flow. But in the long run, it is the freehold homes that have long term appreciation.
Engaging a Condo Real Estate Agent
You need an experienced agent who has thorough knowledge of the buildings in the area you’re searching. A professional agent can also give you advises and make sure you’ll avoid hidden pitfalls. Most importantly, the agent and the investor should have good chemistry. Here are a few questions you need to ask yourself when looking for an agent:
- How good is the communication? Am I being kept up-to-date with the transactions? Are my calls returned promptly? Does the agent adapt to my preferred means of communication?
- Does the agent listen to my concerns and preferences? Does the agent let me know of all the positive and negative attributes of each pre-build condo that I’m considering?
- Does the agent give me a list of their most recent clients as references?
Buying pre-build condos in Toronto is a big step – but one that can also bring great rewards.
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.