Real estate investors continue to flock to Toronto and the GTA from all over the world. In Toronto, prime high rise condo building prices start at approx. $1000 per square foot (resale condominiums) and go up to $1500 per square foot (pre-construction/new builder luxury condominiums), as of Aug 2023. The average price of homes & condos can be seen in Toronto Regional Real Estate Board (TRREB)'s GTA real estate market reports.
In comparison, in Downtown Mississauga, resale high rise condos in prime buildings start at approx. $800 per square foot and go up to $1200 per square foot for pre-construction/new builder luxury condominiums, as of Aug 2023. Toronto and Mississauga offer a safe real estate investment for investors looking for a second or third home in two of North America's most diversified cities.
Selecting between the Mississauga condo market and Downtown Toronto condo market hinges on personal preferences. Both markets exhibit strong demand for rental units and attract a similar caliber of tenants. Opting for an investment property in proximity to one's residence makes practical sense.
Additionally, a noteworthy aspect is the cost disparity. Properties in Downtown Toronto command a premium of nearly $80K to $100K compared to similar properties in Mississauga. For investors, securing the maximum value for their investment is paramount, and opting for a property of lower value can prove to be a more judicious decision.
If you have invested in financial markets, such as stocks, mutual funds etc. and are considering diversifying into real estate, we are here to provide assistance. Our services encompass not only the acquisition of promising investment properties but also finding great tenants to ensure optimal returns. Furthermore, we go the extra mile in aiding your property management needs by linking you with contractors including handymen, plumbers, painters, flooring professionals, electricians, HVAC contractors, and more.
Beyond the initial purchase expense, there are ongoing monthly costs to consider, including: property taxes, mortgage payments, potential condominium fees, property insurance, and, if desired, professional property management services. Condominium fees often cover most utilities, or these may be handled by tenants, where applicable.
The potential return on a real estate investment in the Greater Toronto Area (GTA) can vary widely based on several factors, including property type, location, market conditions, financing terms, and investment strategy. Generally, investors aim for two main types of returns:
Additionally, investors should consider other costs and potential risks, such as property management fees, maintenance expenses, property taxes, insurance, and potential vacancy periods.
When selling a residential property in Ontario, there are a few taxes and considerations you should be aware of:
In Ontario, rental income is subject to various taxes and reporting requirements. Here are the main taxes and considerations related to rental income:
The GTA rental market has historically experienced high demand due to factors such as population growth, immigration, and a robust job market. Toronto's status as a major economic and cultural hub attracts renters from various backgrounds. Rental rates in the GTA have seen steady increases over the years, driven by strong demand and limited supply.
The rental vacancy rate has historically been relatively low in the GTA, which can contribute to competitive conditions for renters. Condominiums have become a significant part of the GTA rental market, offering renters a range of options in terms of size, location, and amenities. Many investors have purchased condos for the purpose of renting them out.
The Greater Toronto Area (GTA) has been grappling with a persistent housing shortage for several years, driven by a combination of factors that have led to imbalances between housing supply and demand. This shortage has had significant implications for housing affordability, rental rates, and overall market dynamics. Here are some of the key aspects of GTA's housing shortage:
Efforts are ongoing to address the housing shortage through measures such as intensification, increasing housing density, improving zoning regulations, and incentivizing affordable housing development. However, the GTA's housing shortage remains a complex issue with multiple interrelated factors that require careful planning and long-term solutions.
Ontario's rental laws have drawn criticism for favoring tenants, leading to imbalances with landlord rights. These laws, while designed to protect tenants, can hinder landlord's ability to address issues like non-payment or property damage. Rent control measures, meant to curb excessive rent increases, may discourage landlords from investing in property improvements. The eviction process, perceived as tenant-friendly, is lengthy and intricate, making it challenging for landlords to regain property possession even for legitimate reasons.
Compounding the problem, the Landlord and Tenant Board (LTB) faces inefficiencies and backlogs, delaying dispute resolution. Some tenants exploit this situation, utilizing legal processes to delay eviction or avoid rent payments. Property damage and maintenance concerns by tenants further exacerbate issues.
Balancing tenant protection with landlords' rights is essential. Reforms to create a more equitable framework and streamlining the LTB for efficient dispute resolution are needed. Achieving a harmonious equilibrium is crucial for fostering a healthy rental market in Ontario, benefiting both parties involved.
Yes. Team Kalia specializes in helping landlords find sound investment condos followed by qualified tenants in Mississauga and surrounding areas. Finding good tenants requires a lot of time, effort, knowledge and experience. We can help reduce your dilemma and weed out bad lemons.
Tenant Screening Process: Ensuring Reliable Rentals
Thorough tenant screening involves a series of meticulous steps aimed at identifying trustworthy occupants. These crucial steps encompass:
By meticulously adhering to these tenant selection steps, we minimize potential risks associated with renting our landlord's investment properties.
Drawing upon our extensive real estate experience, encompassing buying, selling and renting properties for individual landlords, we understand that a full-time rental property management firm can occasionally deplete an investor's financial resources. Furthermore, property owners who choose to oversee their own rental property management are likely to concur that this task can become quite formidable, especially for those residing outside of the area or abroad. From the standpoint of a savvy investor, the decision to engage a full-time property management company may not always align with prudent financial sense.
To help enhance the value of your real estate ventures, Team Kalia introduced an à la carte rental property management program in 2010. This distinctive offering extends peace of mind to our investors (buyer clients), leading to substantial cost savings in rental property management and concurrently bolstering their confidence in real estate investment.
This program is exclusively available through Team Kalia to investors who acquire their investment properties from us. Notably, this program's availability carries no obligations for other sales professionals at RE/MAX Real Estate Centre Inc. Brokerage. This service facilitates direct connections between our landlords and reputed service providers (handymen, electricians, painters, plumbers, HVAC contractors, flooring specialists, kitchen contractors, etc.) at no cost. Our clients have effectively managed their investments from as far as the Middle East, India, and Australia using our services. Moreover, there are no charges incurred for tenant move-in and move-out inspections when utilizing our real estate buying and rental services in Mississauga and the neighboring cities.
