It goes without saying that Toronto is an amazing place to live, but where is the best place to invest? It takes more than simply guesswork and playing favourites to determine which neighbourhood will build your wealth.
Various pockets of the city are coming into their own with massive revitalization and demographic shifts – and, if you want to get in on a good thing, putting into practice strict decision-making guidelines to decide where and when, in addition to ‘checking-in’ with yourself to ensure it’s a good fit for your long-term real estate goals, will help the process.
7 Factors To Consider When Choosing Where To Invest
- Population Growth
- Increased Development
- Decreased Vacancy Rates
- Increasing Rental Rates
- Attractiveness To Young Professionals
- Accessibility To Local Amenities
For many, low-cost of ownership can not only be tempting, but necessary – especially for first-time buyers and investors seeking cash-flow positive assets. By not utilizing a key set of indicators to determine an area’s investment potential, you may end-up with an underperforming asset. While cheaper home prices can be reflective of a number of factors (e.g social problems, lack of transit-accessibility, lack of amenities, crime rates) don’t overlook areas of the city that are a little ‘rough around the edges’ or not as lively – focus on facts (sales data, demographics reports, city plans) and simultaneously check-in with yourself by asking two key questions:
- Does this area fulfill my investment goals?
- Do I see myself successfully investing in this area?
As real estate investors ourselves, we’ve selected 5 neighbourhoods we think are worth considering:
Once regarded as a ‘sketchier parts of town’ – signs of new life can be found at every corner of this emerging neighbourhood. From young professionals to couples, families and artists, Junctionites enjoy their trendy neighbourhood but also its proximity to High Park and Bloor West Village. It also offers easy access to TTC and downtown, as well as the UP Express for those quick trips to the airport.
Average Dollar Per Square-foot: 730 Sq/Ft
Average Cost of 1 Bedroom: $476,000
Upcoming Condo Developments: 6
- Junction House
- East Junction Condos
- 260 High Park
Take the feeling of a small town, add in the excitement of a revitalized community, top it all off with easy access to the downtown core, and there you have it: Corktown.
There is a ton of promise and freshness in the area; cool new businesses are popping up and the neighbourhood is also at the foot of the Don River trail (perfect for cyclists) and is home to Underpass Park, where you’ll find a playground, skate park, basketball courts, and can’t-miss art. In Corktown, lofts are plentiful. You’ll find boutique condos, hard lofts, and soft lofts, as well as older detached homes and row houses with tons of character. Walkable, bikeable, and transit-friendly, Corktown’s location is a win-win no matter your transportation method of choice. If you want to drive, it’s also easy to hop right onto the Gardiner or DVP.
Average Price Per Sq.ft: $922/Sq.ft
Average Cost of 1 Bedroom: $549,125
Upcoming Condo Development: 4
- Corktown Condos
- Canary Block
- Harris Square Condos
- Canary Commons
Already established in its own right as Toronto’s Greektown, Danforth Village is experiencing a resurgence first and foremost for already being on the subway line, having great schools, large green spaces, culture and identity. As an attractive community for young families, condo developers are also seeing the potential – a sure sign of growth. Not to mention, it is much cheaper in comparison to its neighbouring ‘hoods. For instance, the average cost of a 1 bedroom plus den condo in Riverdale costs $973,000 where a unit in Danforth Village is significantly more affordable at an average of $608,290
Average Price Per Sq.ft: $829/Sq.ft
Average Cost of 1 Bedroom: $475,911
Upcoming Condo Development:
- Canvas Condos
- On the Danforth Condos
Parklawn still has a couple of years until it reaches its peak, but it’s precisely why investing in this area will allow you to afford a lot more than some of the other neighbourhoods in the city. Situated right near the Gardiner Expressway, and abundant with green space, wildlife, and a quality that is more and more drawing people out of Toronto’s downtown core. Majority of the condos in this neighbourhood are situated along the lake, which means stunning unobstructed views for a fraction of what it would cost in the downtown core.
Average Price Per Sq.ft: $777/Sq.ft
Average Cost of 1 Bedroom: $442,224
Upcoming Condo Development:
- Vita on the Lake
- Cove at Waterways
- Water’s Edge on the Cove
Situated to the west of the scenic Don Valley, Regent Park is a downtown neighbourhood in transition. Though in the past much of it consisted of townhomes and public housing, many of these older projects have been removed to make way for modern mixed-use residences including some amazing new Toronto condos like One Cole. Just minutes away from the DVP and transit at the doorstep, close to Ryerson University and U of T makes this area incredibly accessible. With this, the revitalization of Regent Park is almost complete and an amazing, well-rounded neighbourhood is emerging, and as a result, the cost of homes will remain quite steady for a few years making it an ideal opportunity to take advantage of the rental market.
Average Price Per Sq.ft: $899/Sq.ft
Average Cost of 1 Bedroom: $502,833
Upcoming Condo Development:
- The Wyatt
- Dueast Boutique Condos