Whether you are a seasoned investor or a first-time buyer looking to make your mark in real estate, entering the Toronto property market is always a good idea.
The key is to comprehend the nuances and intricacies of the condo market in Canada’s largest city.
Urban living in Toronto is a constantly evolving landscape, and making investment mistakes is easy if you don’t know what you’re doing.
Below are five insightful tips to help you avoid making some of the most common mistakes in condo investment:
Table of Contents
Ignoring Trends
Start by familiarizing yourself with the basics of condo and property ownership in Toronto. You must understand common terms and be aware of your tax responsibilities.
The housing market fluctuates, to help you navigate the ups and downs, pay close attention to housing trends in Toronto.
Read up on the supply and demand, pricing trends, and interest rates to stay ahead of the curve. Look for a larger unit, with great natural light and impressive amenities, such as a wraparound balcony and gorgeous views.
Not Budgeting
Investing in a condo in Toronto is a great way to diversify your investment portfolio. Even if you can afford a luxury property, you and your accountant should have a budget in mind.
Have your agent research condo prices in your chosen neighborhood and give you a realistic idea of how much you should spend.
The cost of purchasing an investment condo goes beyond the asking price – there are also closing costs, maintenance fees, and monthly levies to factor into your decision.
Trying To Do Everything Yourself
Instead of trying to handle everything yourself, hire a team of professionals to take the stress off of your shoulders.
Choose a seasoned estate agent to help secure the perfect units and reliable property management for Toronto condos. The right property management team will handle the day-to-day operations, tenant screening, property maintenance, and rent collection – basically, all of the potential headaches.
That will allow you to focus on other aspects of your investment portfolio.
Being Too Emotional
Investing in property should be a data-driven decision, particularly if it is your first purchase as an investor.
Do not let excitement or nostalgia cloud your capacity to make an informed decision. Take the time to find the right property for your investment portfolio; otherwise, you could end up buying the wrong condo or paying too much for it.
Have a checklist of what you are ideally looking for, and then stick to it.
Not Doing A Home Inspection
When it comes to buying an investment property (or any property), forgoing the inspection is a mistake.
Do not rely on the real estate agent or information from the seller; call in a professional home inspector. They will check for structural damages, roofing issues, pest problems, or any other non-compliance issues that you are not trained to recognize.
Never commit or agree to purchase a condo until this step has been completed.
Final Thoughts
Focus on investing in condos that will increase in resale value, they will make for a much more lucrative addition to your portfolio.
Follow these five tips above to help you make the best decisions to suit your real estate investment style.