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5 Pro Tips for Investing in Toronto Real Estate

For many, it's hard to know how and when to get started with investing in Toronto real estate. 

If you want to invest in real estate, here are five pro tips for investing in Toronto.


1. Buy to Rent

Renting is a great way to quickly pay off a mortgage and start earning a profit on your purchase. Choose a property that is already separated into different units, or spend a little bit and convert a house into different living quarters to get more bang for your buck. Be sure to collect enough rent to cover not only the mortgage, but also the property taxes, insurance and utilities, plus a little bit extra to cover the cost of any repairs that may need to be done in the future.


2. Invest in Condos

Condos are popping up everywhere across Toronto, and investing in them is a great way to make money. You can purchase them to rent or to sell later. They tend to appreciate in value, so by investing in new condos you can expect a high return on investment in the future. Plus, they require much less maintenance than houses, which is great if you decide to rent them out. Buying a condo pre-construction is another good way to make money on your investment, as the price will increase once construction is completed.


3. Buy to Flip

Purchase a home that is under market value and in need of repairs, renovate it, then sell it for a profit. The downside to flipping is that it takes much longer to find these properties, but in the end flipping a property can be highly profitable. Be sure to factor in all renovation and labour costs when you calculate the final sale price after the flip.


4. Mixed-Use Properties

These are properties with commercial and residential units, like our 940 Bloor Street and 1917-1925 Avenue Road properties. These are great Toronto real estate investment opportunities because you are earning income from numerous units. Plus, rental rates for commercial spaces in trendy neighbourhoods are quite high, as is the rent you can collect on the apartments upstairs.


5. Buy, Hold and Flip

This is a combination of renting and flipping. The idea is to look for properties that are under market rate and in need of quite a bit of repair. You make the repairs and improvements, then rent the property with the intention of selling it in the future. The best tip for this situation is to purchase property in up-and-coming neighbourhoods, then sell when the market is more favourable. It's a great strategy for those who have the patience to wait until the market heats up in that particular neighbourhood, as the payback will be high.