Condos: the most wanted properties in Toronto

Posted September 12, 2018 07:00

Condo investments in Toronto do not reach the expected return, however, the bolder real estate investor can still look to make a profit. Two plus two, that is, two bedrooms and two bathrooms, are among the most scarce assets in the real estate market of downtown Toronto at present. Although hundreds of residential buildings are being built, the size of each of the units has been considerably reduced. According to studies, about 70% of the units in new constructions are smaller than two plus two, therefore, their value is significantly increased. For an investor, the scarcer a product or service, the more valuable it will be in the future, says Manu Singh, investor and broker at Right At Home Realty. That applies to everything, but when it comes to real estate, you definitely want to be on the shortage side, in terms of the unit you buy. There is more value for a unit of two plus two, or even three rooms, because when they change it for a profit they will have less competition and less supply that can dilute the sale price, because buyers will not have much choice. Not only is there a shortage of units with more than two rooms and two bathrooms in downtown Toronto, but it also attracts a larger cohort of buyers. Downsizers prefer two-plus-two because, while they are significantly smaller than the house they sold, they are still large enough to house their visiting children, who will have their own room and bathroom. Young professionals also go to more than two and are willing to pay higher figures in exchange for space and comfort. You have extra room for a baby room and extra bathroom for the guests, Singh said, adding that young professionals who can not afford exorbitant Toronto rents or buy a place of their own are also ideal candidates to rent a two plus two. Roomates are popular in the center of the city, since the cost of rent is divided between two people who earn income. The Toronto condo units are getting smaller and smaller by construction, so Singh recommends something over 1,000 square feet. From the investor's point of view, it is necessary to focus on getting a two + two larger in terms of square feet, he said. If you can get more than 1,000 square feet, it's a great investment because, once again, the newer developments are getting smaller and smaller. In general, rentals of two or more rooms rise more and sell better for those reasons. It's great for investors. According to Sunny Sharma, president and co-owner of Century 21 Leading Edge VIP Realty Inc., the bedroom and bathroom combination is usually divided so that each resident can have an appearance of privacy. Alternatively, in university cities, one-bedroom rooms more equipped with two bathrooms are popular and are commonly rented to students in the area. But during preconstruction, the two + two offer the best investment for your money when it comes to square footage. The two plus two per square foot could be a bit cheaper during preconstruction than those in a bedroom with more beds and two bedrooms because demand is not as high," Sharma said. If you are looking for an apartment in Toronto, contact me! I will advise you and help you find the best option that suits what you are looking for.