The last twenty-five years of Toronto real estate have been unprecedented. Never had we seen real estate values continue up for more than five years at a time. We have now seen a quarter of a century of price increases. We had some small bumps here and there, but those were short-lived.
The wealth of Toronto homeowners have gone up to levels that we never thought imaginable. We have seen considerable increases in homeowners’ return on investment (ROI) when they have gone to sell. Or when they have chosen to refinance to reallocate capital in other assets.
Some Toronto homeowners have done far better than others when it comes to the increase in value compared to some others. To be one of those success stories, you need to think about the ROI and resale when buying a home in Toronto.
Location
It’s the old adage, location, location, location. There is a reason that this has stood the test of time. It’s because it is a crucial pillar of real estate success. As Toronto home and condo prices have skyrocketed over the years, many buyers have been desperate to buy, so they have overlooked the fundamentals. They ignore that the location isn’t ideal long-term (and their agents also seem to ignore this.) When the real estate going is good, it’s easy to overlook what will make your investment perform at its best well into the future. When the market adjusts, those not well-located properties get hit first.
State Of The Home
Toronto has many century homes. Some of these homes have been improved in piecemeal chunks over the decades, leaving them in poor shape. On the other hand, some well-maintained homes have had tasteful improvements over the years. When choosing a home, balancing the age of the house, the repairs needed, and whatever renovation may have been done over the years are essential as these will affect your return on investment down the road.
Local Trends
Local trends tie back to the importance of location. Are there hip shops, restaurants and cafes moving into the neighbourhood? Is the area getting more gentrified? Or has there been a shift in the city’s commitment to improving the area? You are looking to see well-run shopkeepers who want to serve the community and make a difference. The alternative to this is the larger franchise fast-food shops – this doesn’t want most buyers to want down the street from their homes.
➤ Every good investment needs a well-planned strategy. Start preparing with:
- Are Condos A Good Investment?
- Condo vs House Investment
- Best Family Neighbourhoods In Toronto
- Best Neighbourhoods With Green Space
Neighbourhood Development
Development seems to be happening in every Toronto neighbourhood. Cranes are all over the city. Developers have been buying up land throughout the city as the demand for condos has been so high. Take Dupont, for instance. Dupont has long been an overlooked area with commercial and industrial land and acted as a way to cut across midtown. Nowadays, that land is being built on. Condos will line the street in the years to come. This is positive for buyers. If you want to purchase a home, buy just far enough away so that people aren’t looking into your home or taking your street parking.
Metrolinx and the TTC have been working away at expanding Toronto’s transportation services. This will serve the neighbourhoods where subway stops are created. This will do wonders to serve communities that were difficult to access with public transit. Keeping an eye on what community is next will help increase your ROI.
➤ Learn more about Toronto’s neighbourhoods in my Toronto Neighbourhood Guide.
Point Of Difference
Another often overlooked element of decision-making is what is the point of difference of the home? We all want something unique, different and better than another. Knowing what makes the home special and unique will help build and retain value long-term. If every home looked the same in Toronto, it would make it harder to sell for maximum value versus the other identical house down the street. Having a point of difference goes a long way when you need to separate yourself from the competition. And maybe it’s the street that is so special and different. Take, for instance, Palmerston Boulevard, Rusholme Road, and Admiral Road – these streets of some of downtown Toronto’s finest streets. There is always a list of people looking to purchase the next available home.
