If you’ve been thinking about investing in a condo, you may be wondering if now is the time to make your move. While buying the right unit can set you up for financial success at any time, carefully considering when you do so can help ensure that you maximize your returns.
The keys to making a well-timed purchase are knowing a bit about Toronto’s condo market and fully understanding your personal financial situation. Staying informed will allow you to take advantage of the perfect investment opportunity—whether it’s next week, next month, or a year or two in the future.
If you’re trying to decide whether to invest in a condo right now, here are five signs that it’s time to consider it…
1) Rental prices are in your favour
An investment condo can provide impressive monthly income, especially under the right market conditions. According to apartment-hunting website PadMapper, the average rent for a one-bedroom unit currently sits at $2,300 (2019). While several factors—such as the neighbourhood you choose and the unique features of your condo—will impact the amount you can reasonably charge, higher average rents are usually a sign that there’s real potential to achieve high returns.
2) There are plenty of renters
If you’re deciding whether to purchase an investment unit, consider the local demand for rentals. Put simply, when there’s a large pool of qualified renters, you’ll almost certainly be able to find a reliable tenant without much difficulty. Here in Toronto, the population is growing quickly due in large part to our healthy job market and expanding tech sector. Young professionals are flocking to the city, and the demand they’re creating for rentals is translating into real opportunity for investors like you.
3) You can afford it
A boost to your income can make you think seriously about whether it’s time to invest. When you look into affordability, remember to consider not only mortgage payments and closing costs, but ongoing operating expenses as well. Realistically, will you be able to cover the taxes, insurance, repairs, and maintenance associated with a unit—without incurring financial strain? If the answer is yes, you’re probably well-positioned to make that investment that’s been on your mind.
4) You’ve done your research
While buying a condo to rent out in Toronto could be one of the best financial decisions you ever make, not all units are created equal. That’s why it’s so important to be aware of what makes a great investment unit before you start your search. From in-demand neighbourhoods to the features, amenities, and layouts that generate the most interest from renters, knowing what to look for can lead to a wiser investment. If you’ve already done some research, you’re one step closer to finding the right condo—and seeing the returns you’re seeking.
Do you want to know more about how changes in the real estate market are affecting buyers and sellers? Our recent posts might help:
- Upsizing in Etobicoke: Should You Make the Leap?
- Buying in Etobicoke During a Shifting Market
- Ready to Downsize? The Timing just got Better
5) You can take advice
If you’re like most Torontonians, you’ve probably heard a lot of recent opinions about investing in real estate. While news stories and anecdotes from friends may be what piqued your interest in the condo market, it’s the guidance of an expert that can help you achieve the most profitable outcome possible. If you’re ready and willing to seriously consider an agent’s advice, look for someone with a solid track record of working successfully with investors.
If you’re deciding whether now is the time to buy an investment unit, there are a few factors to contemplate. The good news is, Toronto’s market is full of opportunities—and by making a truly thoughtful purchase, you can take advantage of them whenever you’re ready.
Ready to buy your first investment condo? Reach out to start the process, and we’ll take the first step together!