Have you considered buying a property in Toronto? Well, they are not only profitable but also provide ample facilities. You won’t get a better deal in any other Canadian city than Toronto. Although, finding the ideal property for investment seems time-consuming, as there are many factors to consider. However, Toronto has a diverse range of neighbourhoods where you can find suitable real estate. Read along as we discuss the best places to invest in real estate and the average price range.
Should You Invest in a Rental Property?
The real estate industry is thriving in Toronto and has the potential to grow further. It is an ideal place for the best real estate investments, especially a rental property. While rental properties are known to maximise profits, there is still hesitation among people about investing in this option. As an investor, you would also aim to gain profits from an investment property, so renting it out is a suitable option to obtain higher returns. However, it is important to consider several factors before renting a property.
Renting a house means focusing on various tasks like maintaining the property, getting timely payments, finding ideal lodgers, inspecting the house, and more. All these tasks require time and effort, so make sure to plan accordingly. Additionally, you can also receive professional assistance from service providers regarding rental management. They will handle all the tasks, from collecting payments to inspections. So, you don’t need to fret about renting out your real estate in Toronto.
How to Select a Suitable Place to Buy a Property?
Investing in real estate from diverse options involves many challenges, so it is important to understand how to find the best places to invest in real estate. You need to consider some factors before purchasing a property. These include the following:
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- Availability of employment opportunities
- Demographics of tenants
- Rate of criminal records
- Transportation facilities
- Number of educational institutions (schools or colleges)
Once you have analysed these factors, you can proceed to shortlist a place. Hiring a real estate agent might also offer you expert guidance on it, as they are knowledgeable in determining the best places to invest in real estate in Toronto
What Are the Best Neighbourhoods to Invest in a Property in Toronto?
Detailed below are some of the most profitable and best places to invest in real estate in Toronto:
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Little Italy
Little Italy is one of the well-known neighbourhoods to buy a property in Toronto. It offers almost all the necessary facilities for a high standard of living. The most significant attractions for investors are clean surroundings, elegant cafes and restaurants, exclusive shops, and brilliant educational institutions.
The crime rate in the area is 45% below the national average. Another noticeable aspect is that 54% of people are renters, and only 46% living in Little Italy have their own homes. You can invest in rental properties for sale in this area and earn high returns.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $8,25,000 | $1,200,000 | NA |
| 2 | $1,400,000 | $2,100,000 | NA |
| 3 | $3,500,000 | $2,100,000 | $2,000,000 |
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Corktown
This is another suitable place for getting a valuable property in Toronto. Corktown has abundant amenities, employment opportunities, educational institutions, and transportation services. an important aspect of this neighbourhood is that a majority of the percentage, about 83%, are renters. It is also one of the safest places because the crime rate is 42% below the national average.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $566,000 | NA | NA |
| 2 | $745,000 | $1,100,00 | NA |
| 3 | NA | $1,800,00 | $2,200,000 |
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Leslieville
If you are looking for the best real estate investments in Toronto, choose Leslievielle without hesitation. It is notable for providing a safe and family-friendly area for everyone, with the residents comprising educated and working professionals.
The property rates in Leslieville are likely to rise in the long run, owing to the range of amenities available. These include the proximity to the best schools, convenient transportation, low crime rate, and housing facilities. Also, note that 61% of people are landowners, and 39% are tenants in this neighbourhood.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $708,000 | $1,200,000 | NA |
| 2 | $971,000 | $1,100,000 | $999,000 |
| 3 | $1,100,000 | $1,300,000 | $1,700,000 |
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The Annex
You might be familiar with Annex if you are exploring rental properties for sale in Toronto. It is a beautiful place with rich history and culture. The residents comprise students, professors, and professionals because of its proximity to the University of Toronto. investors can expect a profitable real estate investment as the renters occupy a significant number of houses. The data shows that there are 74% of renters and 26% of property owners in the area.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $813,000 | NA | NA |
| 2 | $1,800,000 | $1,300,000 | NA |
| 3 | $1,400,000 | $2,900,000 | $3,300,00 |
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Cabbage town-South St. James Town
You can also consider Cabbagetown-South St. James Town to find an investment property. It has much to offer, especially if you rent out your house. The increasing number of career prospects, development, transit services, and schools keep this neighbourhood developing.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $566,000 | $830,000 | NA |
| 2 | $745,000 | $1,100,000 | NA |
| 3 | NA | $1,900,000 | $2,200,000 |
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Liberty Village
If you want to invest in real estate, you must also consider Liberty Village. This neighbourhood has everything a buyer needs to make a real estate investment profitable. Renters usually choose this place because of better public amenities, inexpensive properties, and a brilliant community.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $695,500 | NA | NA |
| 2 | $886,550 | NA | NA |
| 3 | NA | NA | NA |
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King West
King West is a prominent neighbourhood for buying property in Toronto. It is abundant in attractive residential properties, transit services, educational centres, and public amenities. You can easily find a suitable investment property as many renters consider living here.
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Average house price
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| Number of Beds | Condo | Townhome | Detached |
| 1 | $500,000 | NA | NA |
| 2 | NA | NA | NA |
| 3 | NA | NA | NA |
How to Measure Profits on a Rental Property?
Every investor is curious about whether their rental property is profitable or not. The preferable solution is to calculate the cap rate of your property. It helps you learn how much returns you get from an investment property. If calculating profitability seems complex, you can use a reliable online rental property calculator to get an accurate result.
The standard formula to calculate the profits on a rental investment is:
(Original cost of the investment) – (Total return on the investment)= Profit
Do Interest Rates Matter in Real Estate Investment?
Interest rates play a significant role in buying property in Toronto as it affects the prices. A high rate of interest increases the burden on investors paying it back, so people often consider selling the property to avoid losses. However, there is also a positive side to higher interest rates. Investors can earn more profit by increasing rental property prices during high demand.
How to Rent Out Your Property?
Here are some tips for if you’re renting out your property for the first time:
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- You can reach out to potential renters through social media platforms. Some examples are Facebook Marketplace and Craigslist.
- Using a rental platform to manage payments and other related tasks is valuable.
- You can get professional help from a real estate service provider who deals in this domain.
Wrapping Up
Discovering the best places to invest in real estate has now become convenient in Toronto. You must consider various factors like public amenities, job opportunities, educational institutions, transportation services, and safe surroundings when choosing an area for real estate investment. All these factors impact the value of a property in the long term. It is also necessary to study the real estate market thoroughly to make the most profitable investment decision.
You May Also Read :
| Guide To Buying Vacation Property | Buying Vacation Property |
| Know About Best Places To Retire in Canada | Best Places To Retire in Canada |
| All About Best Places To Live in Durham Region | Best Places To Live in Durham Region |
| Understand How To Invest In REITs | How To Invest In REITs |
| Reasons For Rental Property Investment | Rental Property Investment |
Frequently Asked Question (FAQs)
Homebuyers look for well-developed streets, parks, educational establishments, transportation services, and stores in a neighbourhood.
You can assess the local real estate market and property values in a neighbourhood through market research.
You can research a neighbourhood's potential for real estate investment by researching crime rates, property value estimates, public amenities, developments, and the presence of big businesses.
The neighbourhood crime rate and safety are crucial in a real estate investment because they impact the property rates. What are the most important amenities and features that homebuyers look for in a neighbourhood?
How can I assess the local real estate market and property values in a neighbourhood?
How can I research a neighbourhood's potential for real estate investment?
Why is a neighbourhood's crime rate and safety considered in a real estate investment?
