The Benefits of Real Estate Investing in Toronto

The Benefits of Real Estate Investing in Toronto

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Investing in Canadian real estate is a bold proposition that leaves investors with many variables to consider. The options can probably seem overwhelming at first, so nothing can replace the importance of good, solid research that can help inform your subsequent decisions. Identifying a location is typically the first task that an investor must take on, and again, the options might seem endless. Toronto’s status as the largest city in Canada makes it a popular target for the savvy real estate investor, and there’s a lot that you’ll want to understand about the metropolis before you start to browse the real estate listings.

Table of Contents - The Benefits of Real Estate Investing in Toronto

Toronto's Demographics

Toronto is one of the most multicultural and diverse cities in the world, let alone in Canada. It’s a mecca for immigrants from both near and far – it’s a leader in interprovincial emigration as well as international arrivals looking to share in Canada’s rich culture. Roughly 100,000 immigrants arrive in Toronto every year, drawn in by the city’s varied cultural offerings and enormous economic opportunity. This gives Toronto a unique draw for real estate investors–the city is never lacking in new and permanent residents, so you’re likely dealing with a market that has a steady stream of tenants who will need your rental property for their housing needs.

Toronto - A city with a history

Toronto has the longest history out of virtually all of Canada’s cities, so it’s hardly surprising that it boasts its fair share of older homes and properties. This not only means the city is chock-full of charming neighbourhoods but also means that the opportunity for refurbishment and development is everywhere. Buying an older home and renovating it is a great way to generate revenue and create rental units that can drum up significant amounts of money for your portfolio.

Toronto Economic outlook

Toronto is Canada’s financial hub–businesses flock here, and the Toronto Stock Exchange is one of the largest exchanges in the world. The five largest financial institutions in Canada all have offices in Toronto, so the city is a draw for skilled and wealthy residents. This can mean boosted rents for your rental properties, so the strength of the economy is a real asset to the astute real estate investor. Toronto is also a tech hub, meaning that the economic outlook is not just focused on long-standing institutions–it figures to be the type of dynamic and vibrant city that draws in young people for years to come. Again, this could be a great opportunity for an investor who can provide quality and affordable housing for these demographics.

Potential for growth

Toronto is well-suited for the current world as well as the future one. The city is always undergoing a large amount of construction, which bodes well for the future prospects of this global city. Additionally, the public transit system is a leader in Canada, but Toronto is committed to ensuring that it expands even further. This means that additional neighbourhoods and areas will be opened up to downtown access, meaning that the markets for purchasing property will continue to grow and expand. The spirit of development in Toronto makes it an attractive prospect for potential residents and real estate investors alike.

Cultural offerings

Another factor that draws people to Toronto every single year is the city’s remarkable offerings of cultural merit. Sports are a huge part of Toronto's daily life, with the Maple Leafs, Raptors and the Blue Jays being the city’s representatives in the four major North American sports, while Toronto FC represents the city in Major League Soccer. The city is also a leader in the performing arts and museum space, which gives residents real reasons to not only move to the city but to stay for the long term as well. Assets like the National Ballet of Canada, the Toronto Symphony Orchestra and the Canadian Opera Company all call Toronto home, so the city’s status as a global hub of fine arts is well deserved. A city that values culture to such a degree is one that will be a magnet to new arrivals.

Market appreciation

The real estate market in Toronto is looking strong for the future for the simple reason that land is becoming more and more scarce in our largest city. Residential property expansion can be hamstrung by this scarcity, which could actually serve to benefit investors. The property will likely only become more valuable over the years, which can mean increased rents for rental properties in Toronto. The city also benefits from lower price volatility as a result of this scarcity. This means that a rental property that you purchase in Toronto is likely to hold its value consistently over time. At worst, your property’s value will remain steady, but given current economic conditions, it’s more likely that an increase will be in the cards. This steady appreciation makes Toronto a good target for real estate investors who are interested in potentially pricier properties that will hold their value for years to come.

Toronto rental rates stay steady

Rental income on properties that real estate investors purchase in Toronto is projected to stay steadily trending upwards due to the scarcity of properties and the burgeoning economy. Property prices remain high throughout the metropolis, so this typically translates into the higher rents that Toronto properties are currently generating. There is a higher cost of living in Toronto as well, which means that your tenant pool is likely to have higher income levels and be more likely to afford rent rates that are desirable for landlords and real estate investors.

Toronto is the largest city in Canada and its opportunities for growth in the real estate investing sector are virtually limitless. Many markers indicate that this global metropolis is trending nowhere but upwards, and if you have the resources to get a foothold in this pricey area it could prove to be a wise and timely investment. We are confident that Toronto’s status as a diverse and attractive destination for people of all ages and backgrounds make it a hot market for the right investor.

How to Invest in Real Estate in Toronto with a FT Job!


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Scott Dillingham

Scott Dillingham

I have been investing and lending to real estate investors for nearly 10 years now. After thousands of successful deals between flips, rent to owns, student properties and commercial assets I have developed a deep knowledge of real estate investments and have a passion of sharing this information with the world! If your looking for a lender who specializes in rental property financing you're going to want to connect with me at team@lendcity.ca.