The right property isn’t always the one that’s for sale.
There’s an amusing episode of The Simpsons where Marge tries her hand at being a realtor. She has the following exchange with her manager:
Lionel Hutz: I’ve been getting a lot of calls about you, Marge. People just love your no-pressure approach.
Marge: Well, you know what we say: the right house for the right person.
Lionel Hutz: I’m going to let you in on a little secret. The right house is the house that’s for sale. And the right person is anyone.
Of course that’s a caricature of the slick salesperson, and not reflective of how most realtors conduct themselves. It’s more a comic illustration of the pressure that realtors are often under.
This pressure is particularly real when it comes to property investors, who are keen to put their investment dollars to work in a market that isn’t short on opportunities for excellent ROI.
Currently, the Toronto re-sale market is experiencing a period of high demand and low supply. This environment demands that buyers move quickly on available property. As a result, many investors unknowingly put a limit their returns by settling for “the house that’s for sale”.
Not all properties can be high-yield investments. Location is of course always a consideration in real estate, and extends to what a neighbourhood will look like in five, 10 years’ time. The size of a unit and its amenities carry weight as well. As attractive as newer-build condos can be when they hit the market, they are generally less spacious and less accepting of value-boosting remodeling down the road.
As quickly as the Toronto real estate market moves, it’s often worth waiting for a property that can perform well as an investment.