March 28, 2019 | Uncategorised
Let’s be real. There are not a lot of deals left in Toronto. The cost of living here is high. Buying property in Toronto can be challenging, and a good strategy can go a long way.
An amazing home or investment property, in a beloved Toronto neighbourhood, does not often land in your lap at a discount. You need to seek out your deals wisely. And in many cases, the deals won’t appear to be deals until some time has passed.
With that said, there are a few tips you can take to find a deal. It won’t be easy. Sacrifices may have to be made. It may require, an open mind, a bigger commute, or considering somewhere you have never visited or know well. So, here are some some deal-finding tips:
- BUY NEAR FUTURE TRANSIT ROUTES I’d like to put an emphasis on “future” here. Neighbourhoods that once had failing transit scores may soon be top of the class for transit in this city. You’ll likely find Toronto neighbourhoods, with a great transit scores already, have a higher price tag because of the existing transit infrastructure. Think poor transit now. Good transit to come. The best example of this right now may be the Eglinton Crosstown. There is no speculation if this transit line is going to be built. It is currently under construction. See more details on this transit link here. Also consider this very important mobility hub to appear in the Mount Dennis neighbourhood in the years to come. Not only do we have the new Eglinton Crosstown, but access the the Union-Pearson Express and GO transit lines. Details on this mobility hub and all its glory can be found here.
- BUY NEAR NEIGHBOURHOOD-CHANGING DEVELOPMENTS Condo development happens all over the city. It’s really not terribly impressive if a neighbourhood has a new condo coming. There are some neighbourhoods, though, that will transform with development into something much more appealing than it already is. The change has to be big enough that it will alter the character in a given area for the better in a significant way. In the east, Corktown is due for even more impressive development. Even though Corktown has already gone up significantly in price already, there is room for more once the Portlands to the south will be made over by Google, the Unilever factory may become a mobility hub and the mouth of the Don River goes from a poorly flowing concrete mess to naturalized free flowing river with more trees and bike paths. But wait, there’s more! Further details on Corktown development to come can be found here. In the west, I think the strip mall near the intersection of Dundas West and Bloor where the old Zellers, a Loblaws, and a few other shops with a giant parking lot could be very different in the years ahead. This development will make for a neighbourhood-changing transformation, and significantly improve a very ugly intersection close to Bloor Subway and the UP Express. More details here.
- GO TO HAMILTON Note that I did not say: Leave for the suburbs. I choose Hamilton as a good option because Hamilton is not a suburb nor is it a small town that a suburb has exploded around. It is a rapidly transforming city that reminds me very much of how Toronto used to be in the 90s when it was less expensive. Hamilton is not for everyone. It is a serious commute, but if you want a house is an awesome neighbourhood for a lower price you certainly won’t find in Toronto, then Hamilton should be on your radar. Click here for more details on Hamilton.
- FOLLOW THE MARKET – IN THE RIGHT WAY! There have been some people who have been waiting for the market the crash in Toronto before they purchase. It’s true that real estate markets rise and fall, but usually this waiting strategy doesn’t pan out for most. These waiting buyers want to buy at the bottom of the market, but if enough time passes and they do see prices come down, that bottom is likely still more expensive than if they bought when they were first considering a buy. I’m here to tell you that this hold-out for a bottoming out can be tough to navigate. You may not know the bottom or the top has occurred in a given real estate market until it’s come and gone. I don’t care how good you are at predictions, no one can time the real estate market. With that said, it is good to look at trends. For example, condos have had better price appreciation on average in Toronto over the past year than a detached house. If you own a condo and would like to move to a house, now may be a good time. Simple sell high and buy low. In fact, if you just want to buy a detached house, they may still be expensive, but prices are not galloping ahead like other housing types. As a reminder, detached houses are usually the housing type that increases the most in value since supply in Toronto is so limited. You can explore this concept in more detail here.
- LOOK TO THE QUIETER NEIGHBOURHOOD NEXT TO THE DESIRABLE/TRENDY ONE Most Toronto buyers want to live near transit, a walkable main street with Blog TO-loved bakeries, good restaurants, yoga studios, and maybe something distinctive and unique like a place to go lawn bowling in the Junction or a Circus School in Leslieville. So, to be clear, as appealing as these neighbourhoods may be, I’m saying don’t buy there if you want a deal. You need to put your attention toward the less trendy neighbourhood next door. Remember that Leslieville used to be the poor cousin of Riverdale where those who could not afford in Riverdale would buy in Leslieville. Likewise, those who could not do Roncey, moved up the the Junction or Junction Triangle. Those who wanted the Annex looked to Wychwood. And though Leslieville, the Junction and Wychwood are now all thriving neighbourhoods unto themselves now, they were once Spillover neighbourhoods. You need to look for the next Spillover neighbourhood. I’m thinking Caledonia, Mount Dennis and Weston north of the Junction and Junction Triangle. In the east, you may want to consider the far ends of Danforth Avenue near Victoria Park or parts of Scarborough near Toronto.
The kind of deal in real estate I’m talking about does not present itself on the discount rack with a 20% off sticker. The kind of deal I’m talking about may not reveal itself as a deal until some time has passed. You have to buy first and marvel later. Still, there are ways to find a deal, you just need the right mindset and the the right person to guide you along.