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Curb appeal is a significant aspect in determining a home’s market value. That’s why, in the Greater Toronto Area (GTA), homes that are hidden away in an alley way rather than facing the street can sell for up to $100,000 less than a comparable property with street frontage.
Does a house’s curb appeal impact the genuine “value” of a piece of property? The answer to that issue is primarily determined by personal preference and your value on curb appeal as an investor.
Of course, as with all real estate investments, these properties are only profitable investments if you take the time to secure the proper strategic financing in order to allow things to be profitable. So, before you dive into this investment strategy, let us set you up with a free strategy call to start the process today.
How Important is Curb Appeal to You?
Even if a residence does not have frontage on a major roadway, it is still a valuable piece of property. Some prospective tenants may consider a home’s location away from the street and along a quiet street to be a plus.
Alley way homes can be viewed as intelligent investments that require less capital upfront yet have a high-profit potential by savvy real estate investors.
Soon, alley way homes may be a more profitable investment. Local governments attempt to make the most of available space as Canada’s cities become more crowded and unaffordable. A 2016 pilot project in Vancouver focused on activating alley space and making it more appealing, and it was a huge success.
Alley way homes may experience an increase in curb appeal as towns throughout Canada try to make more efficient use of laneway space.
Alley Way Houses vs. Laneway Houses
It’s easy to get the terms laneway homes and alley way homes mixed up. It’s vital to note the differences between these two sorts of real estate products, though.
Alley Way Homes
Alley way houses have long been a feature of Toronto’s urban landscape. They are townhomes and condominium structures that do not have a frontage on a major roadway. Instead, their front doors lead to alleys. This can make them challenging to locate, which isn’t necessarily a bad thing.
Alley way residences may sell for less money or be less traditionally beautiful than properties with street frontage in a highly active real estate market, such as the GTA’s.
In Toronto, laneway houses were recently allowed. Laneway homes are second homes built on the same site as the main house. Laneway homes are secondary suites commonly owned and rented out by the same person who owns the principal dwelling with which they share a plot. Laneway homes, like alley way homes, usually do not have street frontage. Instead, they face the alley behind the main house.
For homeowners who currently own a property in an area of the GTA where laneway homes are legal, laneway homes offer an economical investment option. When compared to acquiring a standard structure, they are a relatively low-cost option. These properties may also be more appealing to tenants since they provide the privacy and convenience of a single-family home without the expenditures of renting out a whole residence.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Alternative Real Estate Investments in the Greater Toronto Area
Don’t be discouraged if buying a single-family house or an entire apartment in the fast-paced GTA real estate market appears out of reach. Creative investors can employ a variety of housing types to get a grip in the GTA real estate market, including the following:
These are houses, townhomes, or condominiums that do not have street frontage. Instead, they are faced by an alley way. This means they can be thousands of dollars less expensive than traditional homes while providing the same comfort level. Alley way homes are an excellent option for savvy investors looking to save money while investing in the GTA.
Buying a condo unit as an investment property isn’t always straightforward. Many condominium communities have rules about how investors can buy and use condo units. If you plan to invest in a condo, it might be a profitable urban investment opportunity with a considerably lower barrier to entry than a single-family home or apartment building.
Built-in rents within a primary property are known as secondary suites. They have separate entrances, kitchens, and baths. Toronto has relaxed its laws on constructing secondary suites within direct houses, making it easier than ever to turn a portion of your home into a secondary apartment and earn rental money.
Townhomes are single-family houses that share walls with their neighbors. Townhomes are particularly popular in mid-density locations, such as those in the GTA that is increasingly expanding. Townhomes are significantly less expensive than freestanding single-family residences. For savvy investors familiar with their desired neighborhood and tenant, purchasing a townhome as an investment property could be a fantastic possibility.
Laneway homes in the GTA are smaller, secondary residences that share a plot of land with the owner’s primary residence, similar to secondary suites. Laneway residences, unlike secondary suites, are self-contained, giving residents additional space and seclusion. In Toronto, recently relaxed city laws are making it easier to develop laneway homes. Laneway residences, on the other hand, cannot be sold separately from the primary house.
If you don’t currently own a home in Toronto and don’t want to deal with the hassles of buying a condo or townhome, you might want to look into finding affordable sub-markets in the GTA that nevertheless offer a reasonable return on your investment. West Hill, Malvern, Rouge, and Centennial Scarborough are all cheap areas with a lot of promise for growth.
Regardless of the instruments, you choose to invest in the GTA market. You can expect to make a good profit and see your asset appreciate over time. While the GTA real estate market may be cooling temporarily, now is the best time to buy an investment property in Canada’s largest city.
If you haven’t considered an alley way investment yet, you should think about it. Don’t be intimidated by the lack of street frontage—it could be the property’s best feature! Get to know the GTA’s back alleys and see if you can spot a good investment opportunity!
So, if you are ready to begin financing and investing in alley way real estate, all you need to do is click the link below and we will help you get started with strong, strategic financing through a free strategy call today.