When selecting an investment property, there are many details to consider and familiarize yourself with. Let us guide you.

Where to buy

Location, Location, Location

Choosing wisely means buying in a location that offers the best opportunity for growth. To quote Wayne Gretzky, ”A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.“.

Neighbourhood resale trends

Understanding the value trends of a location is important to projecting value appreciation into the future but that must be examined in tandem with many other factors.

Neighbourhood rental trends

Rental rates usually head in the same direction as property prices, but rarely at the same pace. Analyzing the rent-to-value ratios and trends for a location is crucial.

Tenant demographics

One cornerstone of a well-performing investment property is a quality tenant. The time lost and expenses incurred in managing an insecure tenancy will negatively impact returns. With a strong supply of quality tenants, everything else falls into place more easily.

Local factors

Local factors can be incredibly influential. A market can be booming yet leave a property behind if the waste station next door keeps operating but that same property is a solid investment if the station is certain to shut down. Needless to say, research and risk assessment are key.



What to buy

What to buy?

Not all investment properties are equal. Some are more appropriate for particular investors than others, and it’s important to understand why.

Condo apartment
(Toronto average $320k)
These have a low cost of entry and low upkeep costs, but are coupled with high price volatility and low-level appreciation prospects. They attract renters of above-average quality but have higher turnover rates.

Condo townhouse
(Toronto average $540k)
These have a mid-level cost of entry and low upkeep costs, with mid-range price volatility and mid-level appreciation prospects. They attract renters of above-average quality and have mid-level turnover rates.

House
(Toronto average $860k)
These have a high cost of entry and mid-level upkeep costs, with low price volatility and high-level appreciation prospects. They attract renters of varying qualities but have low turnover rates.

Multiplex
(Toronto average $1.5M)
These have the highest cost of entry and high upkeep costs with very low price volatility and the best appreciation prospects. Turnover rates and quality of tenant attracted vary widely by property, but can be stabilized through multiple income suites.



Income expectations

Property income potential

Even investment properties with the highest of value appreciation are impossible for most investors to hold if income is not offsetting expenses. Wise investors understand how the investment is performing at time of purchase, and establish a plan to improve over time.



Managing risk

Macro-Economic Trends

While it is true that "you don’t wait to buy real estate, you buy real estate and wait", consideration must be given to nation-wide and global trends. That never means waiting until a market collapses (unless you can predict the future) but it does mean managing risk.

Laws of the Land

Ontario's regulations are what makes it such a safe place to invest. But its regulations are also quick to penalize investors that don’t observe them.

Residential Tenancy Laws

Tenants in Ontario are given very strong legal protection by laws, laws which even supersede anything a tenant and landlord agree-to on their own. Knowing the Residential Tenancies Act and how it is applied at the Landlord and Tenant Board is crucial to navigating disputes effectively.

Building Codes

The various building-related codes apply across Ontario and have wide-ranging impacts. Even changing an electrical outlet is not without regulations, so an investor must give due considerations when contemplating any improvements.

Municipal By-laws

Municipalities very in their by-laws, especially zoning. What may be possible in one location may be impossible across the street. Investors buying multi-unit dwellings must be fully aware of the risks and opportunities a city's by-laws present.

Fire Safety Codes

The Ontario Fire Code applies across the entirety of the province and is ignored at risk of great peril to both tenant and investor. Ensuring a property complies with the code is a must and best understood in advance of any purchase.

Remodeling

Build Value

Hidden gems in the Toronto real estate market are highly coveted. Finding them is just the start; our remodeling capability helps you brush them off and let them shine, in order to reap their hidden value.

How we build value >

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