Addressing the Age-Old Question in Real Estate: Where to Buy?

Posted on July 13, 2021 by pmtadmin

As everybody knows, there are three rules in real estate: location, location, and location. Choosing where to buy land is a question with multi-faceted answers.

Everyone has their own needs and wants, which must be weighed against external factors unique to the city, neighbourhood, and the particular site itself. Perhaps you want to buy a property now and rent it out for income with ideas for your children to live in it one day down the road. If so, you’ll have a set of needs that differ from someone buying property purely as an investment.

Property Management Toronto is proud to offer real estate consulting services to help you assess your needs against what’s available in markets like Toronto’s downtown core to the surrounding cities, from Hamilton to Ajax and beyond.

Let’s take a macro look at housing prices in a few regions and check out changing developments at a ground level too.

Toronto

Toronto, Canada’s most populous city, has many things going for it. It has tons of green space, a thriving downtown loaded with every kind of restaurant, museum, gallery, and concert hall. It’s the country’s commercial capital, with businesses from a cross-section of industries based on its downtown and surrounding environs.

For these reasons, real estate value in the city has a rock-solid foundation. While nobody can predict the future with 100% certainty, the value of a home in Toronto has only risen steadily over the years.

According to the MLS Systems and the MLS Home Price Index, in the past 12 months, the cost of a house in Toronto has risen by 13.4%, from $875,900 to $1,045,800. Resale activity slowed down, despite the price of a house rising to an all-time high.

According to the Toronto Regional Real Estate Board, there were 11,951 home resales in Toronto in May 2021, 12.5% lower than April and 23.6% lower than March (which was a record-setting year). While this may seem like resale is taking a dip, May’s resale total was above the 10-year average.

May’s 2021 total was also twice as high as of May 2020, when the world entered the second month of the COVID-19 pandemic. May is often the month with the highest amount of home sales in a given year, but the housing market peaked in March, with a reported 15,646 deals.

Property Management Toronto has over 25 years of local real estate experience, so we can answer any questions you have about changing markers, and we’re still the premier rental agency in Toronto and the GTA. Whether you’re looking to scout the market or find a turnkey solution for renting your property, we have your back.

The 905

While Toronto gets the bulk of the spotlight, the neighbouring regions are wonderful places to live for many reasons! As one of the leading property management companies in Mississauga and the GTA, we can speak to the wonderful green space, terrific schools, and the thriving cultural scene that makes the 905 regions so wonderful.

Many companies choose to locate their company headquarters in these cities, and there are also several excellent universities. The proximity to Toronto makes a commute simple — for years, thousands of people have done it every day. Between the competitive tax rates for businesses and being near a major international airport, it’s easy to get to work, and it’s a wonderful place to raise a family.

Credit: Luis Ruiz via Pexels

Toronto’s red hot real estate market has grown beyond the city, spilling into the surrounding regions. The price of a detached home in the 905-area neighbouring Toronto rose by just over 40% year-over-year in May 2021, to a total of $1,331,176.

For comparison, the average detached home in Toronto in May 2021 sells for $1,716,272, a considerably larger total dollar value than the 905, but its growth rate was 20.5, roughly half that of the 905. Talk to the Markham property management experts to compare other local markets year over year.

Canada expects waves of immigration over the next few years and even decades, so the demand for housing doesn’t appear like it will slow down any time soon. There were fewer listings, meaning buyers faced a more competitive market.

Contact us for Hamilton property management services that will find the home that meets all your needs in less time.

More Local Considerations

Taking a broad look at the market is essential, but so is peering down at a street level and assessing the specific features of a property. If you or your children plan to live there one day, your needs will be different than if it’s only investment property.

For example, you may love swimming, but having a pool on a property traditionally lowers a home’s resale value because not everybody wants to take on the maintenance and expenses. It’s better to have ample space for a pool, so the next owner can opt to build one.

Curb appeal is vital, as it’s universally considered desirable to be located further from the street. Few people like windows near sidewalks where people can see into the home, and space for a yard, garden, or driveway is always a strong asset for an investment property.

Parking is also crucial. If your income property is in a suburban area, parking is probably widely available. It becomes a better asset if your unit or home comes with parking if you live downtown. The important thing to note here is how to shift your thinking when choosing a location for buying an investment property: it’s not about what you necessarily want in a home. You need to consider what the market values.

You may not have school-aged children, but proximity to a good public school adds significant value to a home. Make a list of your goals for the investment, then make a list of your wants and preferences, and find a property that ticks off as many boxes as possible.

Choosing where to buy a property is a multi-dimensional decision that factors in geographic locations, timing, personal finances, and more. Navigating all this is complicated, especially as society continues to change in widespread, unpredictable ways due to the COVID-19 pandemic. If you’re looking for property management in Oshawa or anywhere in the Golden Horseshoe region, don’t hesitate to reach out to us.