Toronto real estate

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Home for the Holidays: A Realtor's Guide to Captivating Christmas Decor

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'Tis the season to transform homes into winter wonderlands, and as a realtor, what better way to capture the festive spirit than by showcasing properties adorned with enchanting Christmas decorations? Creating a warm and inviting atmosphere can significantly enhance the appeal of a home, making potential buyers feel a connection that goes beyond brick and mortar. In this guide, we'll explore innovative and tasteful ways to decorate homes during the holiday season, turning them into irresistible destinations for prospective buyers. Even if you are not selling, here are some great ways to reflect the holiday season within your home.

Christmas Decor Real Estate

Curb Appeal that Sparkles

The first impression is crucial, and during the holidays, curb appeal takes on a whole new meaning. Start by adorning the entrance with a festive wreath that complements the home's color scheme. Consider adding subtle outdoor lighting, such as string lights along the pathway or a beautifully illuminated tree near the entrance. This touch not only enhances the home's exterior but also creates a warm and inviting ambiance.

A Cozy Fireplace Setting

Highlight the heart of the home – the fireplace. Arrange plush holiday-themed throws and cushions on the furniture surrounding the fireplace, creating a cozy and inviting space. A well-decorated mantel adorned with stockings, candles, and garlands adds a touch of festive elegance, making potential buyers envision themselves celebrating the holidays in their new home.

Christmas Decor for Real Estate

Deck the Halls – Stylishly

Opt for a cohesive color scheme that complements the home's interior. Consider classic combinations like gold and red, or go for a more modern touch with silver and blue. Ensure that decorations complement the existing decor rather than overpowering it. Simple touches, such as a beautifully adorned staircase railing or strategically placed ornaments, can bring the holiday spirit without overwhelming the space.

Showcase outdoor entertaining spaces

If the property has outdoor entertaining spaces, don't forget to extend the festive decor outside. String lights, outdoor wreaths, and a well-lit patio can showcase the home's potential for hosting memorable holiday gatherings.



Bedrooms that Gleam with Holiday Magic

Create a serene and festive atmosphere in the bedrooms by incorporating holiday-themed bedding, pillows, and throws. A beautifully adorned Christmas tree in the master bedroom can add a touch of magic. Keep it tasteful and cohesive, ensuring that the decor enhances the room's ambiance without overwhelming the potential buyer's imagination.

Bathrooms with Seasonal Splendor

Even the bathrooms can benefit from a festive touch. Consider adding holiday-themed towels, candles, or a simple bowl of decorative ornaments. It's all about creating a cohesive and inviting atmosphere throughout the entire home.

Kitchen Elegance

The kitchen is often the heart of the home, and during the holidays, it becomes a hub for festive gatherings. Consider adding subtle touches like holiday-themed dishware, a decorative centerpiece, or even a bowl of festive potpourri. If the home has an open layout, make sure the holiday decor seamlessly flows from the kitchen into the adjoining living spaces.

Christmas Decor for Real Estate

Create a Holiday Scent Experience

Engage the senses by incorporating subtle holiday scents throughout the home. Consider placing scented candles, potpourri, or even baking a batch of festive cookies before showings. The inviting aroma can evoke feelings of comfort and home.

In the competitive world of real estate, making a memorable impression is key, and during the holiday season, decorating with care and thoughtfulness can set your property apart. By creating a warm and festive atmosphere, you not only capture the spirit of the season but also help potential buyers envision themselves celebrating future holidays in their new home. So, deck the halls, light the candles, and let the magic of Christmas make your home irresistible for the holidays.

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The Best of The Kingsway!

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The Spa at the Old Mill

Summer is coming and it is the perfect time to get out and support our beloved local west end Toronto businesses, who suffered so much throughout the pandemic. To help you find the best places to eat, play and shop, we are updating our neighbourhood pages and will be highlighting a different west end Toronto area over the next few months. Next up The Kingsway!

AVERAGE SALE PRICE (2022)

The Kingsway | $2.45M

TYPE OF HOMES

Detached Tudor style, mostly 2-storey (with some bungalows), set back from the street with private driveways & garages

Est.

1920’s

fun fact

The Kingsway area was established by Robert Home Smith and the names of the streets (Queen Anne, Kingsgarden, King George) were chosen to emphasize English respectability & attract affluent buyers 

the kingsway/sunnylea schools

Etobicoke Collegiate

 
 

Public | Sunnylea JS (JK-5), Park Lawn JMS (JK-8), Lambton Kingsway JMS (JK-8), Etobicoke Collegiate (9-12)

French | Rosethorn & Islington (immersion), Briarcrest & Second Street (extended), Richview CI (high school)

Catholic | Our Lady of Sorrows (JK-8), St. Mark (JK-8)

THE kingsway/sunnylea NEIGHBOURHOOD

  • restaurants, bars & shopping located along Bloor Street between Montgomery & Prince Edward

  • easy access to buses on Royal York & Prince Edward, as well as the Royal York subway station

  • easy commute downtown by highway or TTC

  • Brentwood Public Library is located on Brentwood Road North

  • the 'Taste of the Kingsway' is celebrated along Bloor Street every September

  • beautiful wide streets & big mature tress are signature features of this highly desirable & well established area

The Crooked Cue

INDULGE.

Etobicoke Real Estate Agents

King’s Mill Park

PLAY.

Etobicoke Real Estate Agents

Oleander Floral Design

SHOP.

 

To find out about other amazing neighbourhoods and the best places to eat, play and shop in Toronto’s west end, check out our neighbourhoods page. If you would like more information about this fabulous west end Toronto neighbourhood or if we are missing one of your favourite local businesses, please feel free to drop us a line at info@westsidestoreys.com - we are always available for your quesitons!

Is it a good time to buy west Toronto real estate?

real estate agents west toronto

In a city like Toronto, where real estate is a city-wide obsession and avid spectator sport, the question on everyone’s mind (and the one we get asked at least once a day!) is ‘what is going on in the Toronto real estate market?’

Given all the speculation, we thought we would take a moment to address what is going on, specifically in the west Toronto real estate market, and based on our 20+ years of experience, where we think it is going.

First things first, we’re not saying don’t listen to the media, but the media LOVES to talk about real estate, and generally, they are in one of two camps - the market is crazy and the bubble is about to burst OR the bubble has burst and the sky is falling. Neither of which has proven to be true in the last couple of decades. However, there is no denying that the market was crazy and (in our opinion) unsustainable at the beginning of this year, and that a perfect storm of influences (supply chain issues, the pandemic, the war in Ukraine, inflation, and the resulting interest rate hikes) has created a ‘pause’ in the market that we haven’t seen since the Great Recession in 2009. But even in 2009, the pause in the Toronto real estate market only lasted about 8 months and we think that this market will probably follow suit.

We don’t have a crystal ball, but these are the reasons that we think the market will start to rebound in the next 4-6 months:

  1. sellers can only hold off for so long

    there is a multitude of reasons why people need to sell their homes including death, divorce, job loss, job transfer, expanding family, etc., and while some of these reasons can be put off for the short term, at some point despite market conditions, the house will have to go on the market. At the moment, everyone who can hold off selling their homes in order to see where the market is going is doing so, but that can’t last forever.

  2. the city is continuing to grow

    we live in a large growing city with a finite number of properties. Aside from vertical growth, there is nowhere else to build in this city (hello, laneway housing!), so with the population continuing to expand, there is increasing demand for existing properties. Toronto’s population is expected to grow by $1 million people in the next 25 years and with limited inventory, the demand and price of homes will continue to rise

  3. in some cases the reduction in price will compensate for the increase in interest rates

    this is not the case in all situations, but for the savvy buyer (with an equally savvy realtor) who can spot a good opportunity, the reduction in price since the peak in February of this year could compensate for the increase in interest rates.

  4. buyers with pre-approvals will need to buy in the next few months to take advantage of their locked-in rate

    most of the buyers at the moment are investors with lots of cash on hand, first-time buyers who don’t have anything to sell, and upgraders who will save more money on the property they buy than they will lose on the property they sell. Many of these first-time buyers will have an existing 90-120 day pre-approval (and rate guarantee) and will want to buy before rates go up again and their approval expires. The more buyers that enter the market, the more demand and the higher the prices, which will ultimately motivate sellers to sell.

Toronto real estate

What does this all mean?

The average price in October was almost $1.1M, which has remained stable over the last few months, while the number of sales compared to October 2021, was down almost 50%. The average price was down 18% compared to the peak in February so we have definitely shifted from a seller’s market (buyers > sellers) to a balanced market (buyers=sellers), meaning homes are not selling as fast and we are seeing lower prices and less competition.

So is it a good time to buy west Toronto real estate?

If you have a pre-approval (which we highly recommend) AND you can find something that fits your parameters, then it is definitely a good time to buy. Also, if you are upgrading from a condo to a semi or detached home, you will likely benefit as well because you will save more money on your purchase than you will lose on your sale. Due to a lack of inventory, the challenge is finding a property that fits your criteria, but if you can open your mind to properties that have been sitting around a while and may have gone overlooked or are in locations that you may not have considered previously, then we suggest striking while the iron is hot, because interest rates are predicted to stay at this level for at least the next year and the market will likely bounce back before then.

What does this mean for sellers?

Sellers shouldn’t be afraid to sell in this market, homes that are well located, show well and are priced properly are selling (sometimes even in competition). In this market, pricing is crucial and since every neighbourhood is its own micro-market, make sure you have an agent who is experienced in and knowledgeable about your particular neighbourhood so they can properly advise you on where to price your home for maximum return. Also, if you are purchasing a new property that is dependent on the price you get for your current home, for the first time in a long time we highly recommend selling before you buy.

If you would like more insight into this market, or if you would like to have a conversation about how we approach real estate differently; developing a customized plan to find you your perfect home or sell your existing home in a shifting market; please don’t hesitate to reach out. We are always available for your questions!

How to Choose the Right West End Toronto High School in 2022

Toronto west end schools

There are a number of high schools in Toronto’s west end, each offering different programs and catering to a variety of interests & proficiencies. I have helped both my daughters navigate through this maze of grade 9 options, they each attended different high schools, but I am happy to report that they both made the right choice and ended up at the school that was the best fit for them.

To add to the confusion, the TDSB has changed their application process for specialized programs, so they are offering a virtual ‘Student Interest Programs Information Session’ on November 3rd, from 7-8:30pm. To further support students and families with the application process, central TDSB staff will be hosting three Centralized Program Admissions Support Sessions to answer any questions that students or families may have when completing the Centralized Program Application.  Live, online support will be available on the following dates: November 8 – 4-5:30pm (LINK), November 15 – 7- 8:30pm (LINK), November 24 – 4-5:30pm (LINK).

We have had an overwhelming response to this blog, which we originally posted in 2017 when I was going through this process the first time, so this year we have expanded it to include a few more west end schools.  We hope that you will find it to be a helpful guide to the varied (and sometimes overwhelming) choices available for secondary school education in Toronto's west end!

Specialty Programs & Key Dates

Bishop Allen Academy (Catholic)

  • Advanced Placement Program - an internationally recognized program that fosters success in higher education by encouraging students to develop critical thinking skills at the highest level

Bloor Collegiate

Virtual open house November 10th, 6:30-8:30pm

Etobicoke Collegiate

Virtual open house December 1st, 7-9pm

Etobicoke School of the Arts

In-person open house November 8th, 6-8pm

Father John Redmond (Catholic)

In-person open house October 13th, 6:30pm

  • Congregated Advanced Placement Program which enables willing and academically prepared students to pursue university-level courses while attending secondary school

  • Regional Arts Program in dance, drama, music & visual arts

  • applications are available as of September 26th and are due November 1st. Notification of acceptance to specialty programs is on December 2nd (wave 1) & December 9th (wave 2).

  • the school also offers a Gifted Program

     

Humberside Collegiate

Virtual open house December 15th,  6:30-8:30pm

West Toronto Humberside Collegiate

Humberside Collegiate

Martingrove Collegiate

Virtual open house December 6th, 6:30-8:30pm

Michael Power - St. Joseph High School (Catholic)

Parkdale Collegiate

Virtual open house November 22nd, 6:30-8:30pm

Richview Collegiate

Virtual open house December 8th, 6:30-8:30pm

Runnymede Collegiate

Virtual open house November 23rd, 6:30-8:30pm

Silverthorn Collegiate

Virtual open house November 10th, 7-9pm

Ursula Franklin Academy

In-person open house November 15th, 6-9pm

  • UFA is a small specialized school which has a focus or specialization in the following areas: Wednesday Enrichment Program, Math and Science Programming, Social Justice & Integrated Technology

  • the TDSB has changed their application process for specialized programs, students wishing to apply to the Integrated Technology program at UFA must now do so by applying to these Centralized Student Interest Programs through an online application that will be available from November 7-25.

  • UFA has a two-step admission process, in addition to completing the Secondary Centralized Programs Online Application, all students must then select one date on which they will attend an in-person admissions session. In-person sessions will take place on November 18th from 10am-12pm or on November 26th from 10am-12pm

  • if the number of students who are eligible to attend UFA exceeds the number of spaces available in any given year, all eligible students will be placed in a pool for a random draw (lottery)

west end toronto Western Technical Commercial School

Western Technical-Commercial School and Ursula Franklin Academy

Western Technical-Commercial School

Virtual open house November 17th, 6:30-8:30pm

Please click here, for a list of open houses at all TDSB schools.  Happy open housing and the best of luck to all of you.....high school is a whole other post ;).

Home Buyer Education - Getting Your Finances in Order

First Time Buyers Toronto

The process of purchasing a home in Toronto can be a bit overwhelming, particularly if you are a first-time home buyer.  When we start working with new buyers, we send out weekly ‘buyer education’ emails so that our clients have easy access to important information, and we break it down into digestible chunks so it is not quite so overwhelming.

With that in mind, we thought we would start a series of educational blogs, covering all aspects of the buying process in Toronto.  Since this is the first in the series, we are going to start at the beginning - getting your finances in order!

Pre-approval

First things first, you will need to get pre-approved by your bank or mortgage broker.  This is an important first step because you don’t want to fall in love with your dream home just to find out that the bank won’t lend you the money to buy it!  You will have to provide them with tax returns, proof of income, and a list of all your assets and liabilities.  The lender will then put you through a ‘stress test’ to ensure that you would be able to carry the mortgage even if interest rates rise.  They will approve you based on the rate they are offering plus 2%, or the benchmark rate of 5.25%, whichever is higher.  Here is a handy mortgage affordability calculator to help you determine how much you can afford.  Also important to keep in mind is that there are stricter qualifying requirements for self-employed individuals. 

Whether you go through your bank or a broker, they should walk you through the different products they offer, the difference between a fixed and variable rate mortgage, along with their corresponding interest rates, the varying amortization periods, and pre-payment options.  Once you have been approved for an amount and have decided which product is the best fit for you, the lender will provide you with a pre-approval for that amount at the current interest rate, for a period of 90-120 days.  In the fast-paced Toronto market, this pre-approval is also important because it allows you to submit an offer without a condition on finance.

Mortgage Insurance

A conventional mortgage is considered to be a mortgage with a downpayment of at least 20%.  If the home you are purchasing is over $1,000,000 then a 20% downpayment is required.  If the purchase price is less than $1M and you don’t have 20% to put down, you can put down 5% on the amount up to $500,000 and 10% on the amount between $500,000-$1M.  In this case, the mortgage would have to be insured through CMHC, Sagen, or Canada Guaranty.  You can calculate the cost of the insurance premium here.

First Time Buyer Incentives

Home Buyers’ Plan (HBP)

This government program allows first-time buyers to withdraw up to $35,000 from their RRSPs, without being taxed on it, to buy or build a qualifying home.  The money has to be paid back into your RRSP within 15 years, starting 2 years after the initial withdrawal.  A first-time buyer is defined as someone who has not owned a principal residence or someone who has not owned or sold a home in the past 5 years.  To qualify the home must be a principal residence and the money can be withdrawn up to 30 days after buying a home.  You can find more information on the HBP here.

Land Transfer Tax Rebates

Land transfer taxes are a large expense that must be taken into consideration when purchasing a home.  When purchasing a home in Toronto, buyers are subject to both a municipal and provincial land transfer tax so the amount can be staggering - for example, the LTT on a $1M home in Toronto is $32,950.  Here is a calculator to determine what the land transfer taxes would be based on the purchase price.

First-time home buyers in Ontario can receive a land transfer tax refund of up to $4,000 and first-time home buyers in Toronto can receive an additional municipal land transfer tax rebate of up to $4,475..

First Time Home Buyers Tax Credit (HBTC)

There is also a First Time Home Buyers Tax Credit (HBTC), which offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired during the year. For an eligible individual, the credit will provide up to $750 in federal tax relief.  Learn more here.

First-Time Home Buyer Incentive

The First-Time Home Buyer Incentive helps qualified first-time homebuyers to reduce their monthly mortgage payments without adding to their financial burden.  The program offers 5 or 10% of the home’s purchase price to put toward a down payment.  This portion is a shared-equity mortgage with the Government of Canada which means that the government shares in both the upside and downside of the property value, up to a maximum gain or loss equal to 8% per annum (not compounded) on the Incentive amount from the date of advance to the time of repayment.  The additional down payment lowers mortgage carrying cost, which makes homeownership more affordable.  First-time homebuyers purchasing a home in the Toronto Census Metropolitan Area are now eligible for an increased Qualifying Annual Income of $150,000 instead of $120,000, and an increased total borrowing amount of 4.5 instead of 4.0 times their qualifying income.  Learn more about this program here.

Deposit

Once you have your finances in order, it is time to start looking at some houses!  When you find a home that checks all your dream home boxes and decides to move forward with an offer, there will be a deposit required.  A deposit is different from a downpayment, a deposit is an amount you submit either with an offer (herewith) or within 24 hours of acceptance of the offer (upon acceptance).  This amount is deducted from the downpayment, the balance of which is paid on closing.

In Toronto’s fast-paced market, deposits are often expected herewith so you should be sure to have this money readily available and be available to go to your bank to obtain a draft made out to the listing brokerage.  This deposit is held in trust by the listing brokerage until closing.  Typically a deposit is about 5% of the purchase price.

If you have any questions about purchasing your first (or second or third) home, please feel free to reach out - we are always available for your questions! And stayed tuned for the next blog in our buyer education series.

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The Best of Bloor West!

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Bloor West Village Toronto

Now that Covid restrictions are lifting, it is time to get out and support our beloved local west end Toronto businesses, who have suffered so much throughout the pandemic. To help you find the best places to eat, play and shop, we are updating our neighbourhood pages and will be highlighting a different west end Toronto area over the next few months. First up is Bloor West Village and Swansea!

AVERAGE SALE PRICE (2021)

detached | $1.87M

semi-detached | $1.35M

TYPE OF HOMES

The neighbourhood consists of mostly detached, 2-storey brick homes with lovely shaded front porches and mutual drives or front pad parking.

Est.

1920’s

fun fact

The Bloor West Village Business Improvement Association was started and spear headed by Alex Ling in 1970. It was the first BIA in the world! The BWV BIA has served as a model for all future BIA's.

bloor west village/swansea schools

Bloor West Village Schools

Runnymede Public School

 
 

Public | Runnymede PS (JK-8), Swansea PS (JK-8), Humberside CI (9-12)

French | Runnymede PS (JK-8 - immersion), Swansea PS (JK-8 - immersion/extended), Humberside CI (9-12)

Catholic | St. Pius X (JK-8), St. Cecilia's (JK-8), Bishop Morocco (9-12)

THE BLOOR WEST VILLAGE/SWANSEA NEIGHBOURHOOD

  • restaurants, bars & shopping located along Bloor Street between South Kingsway & Ellis Park

  • easy access to buses on Jane & Runnymede, as well as the Jane & Runnymede subway stations

  • easy commute downtown by highway or TTC & fast access to the airport

  • Runnymede Public Library is located on Bloor Street & Swansea Memorial Library is located on Lavinia Avenue

  • local community theatre, The Village Playhouse, located on Bloor

  • the well known 'Ukrainian Festival' is celebrated every September

  • family-centric & located steps to High Park, great shopping & tree lined streets all make this a highly desirable neighbourhood

Bloor West Village Businesses

A Dark Horse Pub

INDULGE.

  • in delicious Italian food at Queen's Pasta and La Capricciosa and pizza at Bello and Gatto Pizzerias

  • in great coffee at Baka Cafe, Coffee Tree, HotBlack Coffee, ZAZA & The Coffee Boutique

  • in fresh baked treats at Janchenko’s, Bread & Roses, Ma Maison, Bake Sale, COBS or Hot Oven Bakery

  • in a pint at Bryden's, Shakey's or A Dark Horse pubs

  • in Asian food at Ka Chi, Asa and Kenkou Sushi or Yumi Japanese

  • in traditional European fare at Amber European Restaurant, Indian at Bukhara Grill, Latin fare at Bloom, Thai at Simply Thai or Turkish at Flame Food + Design

  • on Jane Street at the delicious Mad Mexican, Queen Margherita Pizza, the French cafe Patisserie 27 or enjoy the charming ambiance at Campo

  • at the popular Annette Food Market on Annette Street

Swansea Town Hall

Swansea Town Hall

PLAY.

Bloor West Village Businesses

Max’s Market

SHOP.

 

If you would like more information about this fabulous west end Toronto neighbourhood or if we are missing one of your favourite local businesses, please feel free to drop us a line at info@westsidestoreys.com - we are always available or your quesitons!

7 Benefits of Downsizing your home

We teamed up with Delmanor Prince Edward to provide a free information session on the benefits of downsizing and why it is important to be proactive about the process of downsizing your home. Some of our favourite clients have been those who have been downsizing from their current home to a smaller, more manageable home or condo, a family suite in a family member’s home or to a retirement residence. We love taking the time to guide these clients through this big life transition and help them to start this new chapter in their lives.

Many of these clients have been in their homes for decades and some as long as half a century. These clients endear themselves to us with their stories about how the neighbourhoods have changed, the neighbours who have come and gone, the home renovations they have undertaken and the families they have raised within the walls of these homes. We are honoured and grateful to take this journey with them and consider it a privilege to play a part in this transition.

Downsizing can be an overwhelming and emotional process, which is why it is important to be proactive and have a solid plan in place. However, there are many upsides to downsizing and here are a few of the clear benefits.

A more manageable space

Some of these clients are in their 70’s, their children have long left home and they are finding that they either don’t want to or can’t manage the responsibilities of maintaining a house any longer. These clients require special attention because most have not moved for many years, they often have accumulated decades worth of belongings that need to be sorted and organized, and it is common for them to feel overwhelmed by the process and all the decisions that need to be made. However, once they have made the move to a smaller home, condo or retirement community, they find the space to be much more manageable and they will often experience the added benefit of a wider social network as well!

financial freedom

Not everyone considers downsizing later in life, some other motivating factors can be a need to reduce household expenses or pursue a simpler lifestyle, a divorce, an empty nest or the desire to reduce responsibilities in order to enjoy more financial freedom and travel. Downsizing can free up finances to allow for more options such as travel, gifting money to loved ones or pursuing new activities and hobbies. Regardless of the reason or motivation, the process is similar for everyone and requires compassion, sensitivity and proactive planning.

minimalism

We take a very thoughtful approach to the downsizing process and are sensitive to the many emotional components that this transition can trigger. Dealing with items belonging to family members who have passed away, engaging grown children in the downsizing process, getting rid of sentimental items that no longer fit or serve and dealing with estates or the division of assets are just a few of the unique obstacles that we need to consider and navigate. Once the process is complete however, there is a certain freedom that comes with owning less ‘stuff’ which can open up possibilities that were not previously a consideration.

choices

Being proactive about downsizing provides the time to research what the next best step is and weigh the pros and cons of each option. You are in a far better position to make the best decision for you if you start the process early, as opposed to being in a situation where you are forced to make decisions quickly and without forethought. With these considerations in mind, we often suggest beginning this process far in advance of the proposed move in order to avoid undue stress and overwhelm. We sit down with our clients and map out a detailed plan of how to get them from where they are to where they want to go, and implement a timeline and provide resources to help get them there.

downsizing plan.png

the luxury of time

With less space to manage, this not only frees up finances but something equally as valuable, time. Without lawns to mow or big homes to clean, our clients find that they have more time to spend with friends and family, travel and pursue interests that they didn’t have time for previously.

Social Life

We touched on this earlier, but it is important to consider the social aspect of downsizing, particularly if you are currently living alone. If a condo or retirement community is your best next step, there are often many organized group activities, exercise classes, movie nights and outings, which provide opportunities to socialize and make new friends.

Health & Safety

The increased social interaction alone can improve quality of life, but if your current home has safety risks such as stairs, or if you find that you need some amount of care or supervision, downsizing can certainly help not only improve the quality of your life, but extend it as well.

You can find more details about how we approach the downsizing process on our downsizing services page. If downsizing is something you are considering but don’t know where to start, we would be happy to sit down with you and chat through your options. With a good plan and an experienced team behind you, downsizing doesn’t have to be overwhelming and can open you up to a world of possibilities!

Is an Investment Property the Right Investment For You?

Toronto Investment Properties.png

Purchasing an investment property could be the right investment for you if you have maxed out your retirement fund & your children's RESP, your mortgage payments are manageable and you have some extra money that you are looking to invest wisely in order to maximize the return on your investment. Real estate is hot and interest rates are low so purchasing an investment property may seem like a no-brainer, but is it the right no-brainer for you?

I purchased an investment property in Roncesvalles with a friend of mine in 2009, and I have to say it has been a great investment and a good decision, but not without its drawbacks, so best to educate yourself and be prepared before you take the big leap….

Get Your Finances In Order

The banks have different financing requirements for a personal residence than for an investment property. A larger down payment (minimum 20%) is required and the qualifications are more stringent, so make sure to pay a visit to your bank or mortgage broker first to ensure that you qualify.

Pick The Right real estate Agent

Do some homework in this regard and make sure you choose an agent who knows the area where you want to buy, understands the principles of investment properties (cap rates, tax implications, income/expense reports…..more on this later) and has a good grasp on the the local rental market and the rules and regulations set out by the Residential Tenancies Act.

Risk comes from not knowing what you are doing

Warren Buffet

Do You Want To purchase an investment property Alone or with a partner?

I invested with a very good friend of mine and it has worked out well because we are both on the same page. We split the responsibilities and when issues arise with the house we pick up the slack for each other, depending on what is going on in our lives. If you can find someone to invest with, I think it’s great, you only have to come up with half the capital and you can split the workload. However, it doesn’t come without its pitfalls, you have to make sure that they are someone you trust implicitly and that you both have the same long term goals & vision. If you do decide to invest with a friend or family member, have frank conversations about expectations and make sure you see a lawyer to legally document your agreement.  Also, be sure to have this agreement documented in your will as well.

Location, Location, Location

How do you decide where to invest? With the rental market being what it is, it won’t be hard to find tenants pretty much anywhere in Toronto, so the best advice I can give would be to stick to what you know. In other words, buy in an area that you are familiar with or an area close to where you live. My investment property is around the corner from my house. I would like to take credit for that savvy decision, however it was really just a bit of a fluke, but I can’t tell you how convenient it is to be 2 minutes away when your tenants are calling with a problem or emergency!

What Kind of Investment Property?

Multi-unit? Single family? Condo? The type of property you decide to purchase really depends on how much you are willing to take on. The more units, the better the investment; the more tenants, the more maintenance and problems to contend with.

The Tenants

Yes, you have to deal with tenants.  This is where it can get a little tricky. Personally, I have had good luck with tenants and all our current tenants are a dream, but everyone has heard the horror stories, and the Residential Tenancies Act definitely protects the rights of the tenant over the landlord, so do your homework, follow up on your reference and credit checks and keep your fingers crossed!

....and The Maintenance

You know the old adage whatever can go wrong, will go wrong, this could not be more true than with an income property.  Nobody likes a slumlord so staying on top of maintenance and repairs is imperative.  If you are handy all the better, but if not, you will need to have a roster of reliable trades people at your disposal.

All that said, if you are up for it, an investment property can be a lucrative addition to your portfolio and when done properly can provide an additional nest egg for your retirement or future housing for yourself or your family members.

This is the first in a series of blogs on real estate investing.  The next one will tackle how to read the financials so you are able to pick out the good investments from the bad ones....so stay tuned!

If you have any specific questions about real estate investing, don't hesitate to get in touch, we would be happy to answer any questions!