Recently a client approached me and asked if investing in a large condo in Toronto would be a good investment. The unit they were looking at is between 1,600 to 1,700 square feet and selling for about $2.3 million. They plan on living in the unit but wanted to know what the long-term prospects for the property were.
Let’s put this into perspective. We’ve talked about all the major companies moving their headquarters to downtown Toronto and some of the developments being built to accommodate the massive increase in population. Some of these professionals are executives earning high salaries that require larger living spaces. They could be downsizing or rightsizing and want to be close to the office base. Perhaps they’re coming from a larger home, maybe the kids have grown and have moved out, and they want something that will continue to accommodate their lifestyle and have the ability to have family come visit them. And though there are many condo developments being built, none of them are really being built to accommodate these individuals leaving very little options for larger units.
In 2017 the average net worth of households in Toronto were $1.154 million and the lowest head offices were at $697,000, the next city being Montreal at $381,000. We have the most head offices which means we have the most high-paying jobs. After searching on MLS, currently in downtown Toronto, more specifically the area south of Bloor, north of the lake, west of Dufferin, and east of the DVP, there are 731 units available below 1,600 square feet and only 56 units that are over 1,600 square feet. There is definitely a gap in the market for large condos and the supply challenge will continue to have stress put on it as more and more individuals requiring more space choose to move downtown and that supply is not being filled.
My advice to this individual and to anyone looking to invest and live in a larger condo in downtown Toronto is to go for it. With everything we just considered above, we’re going to be seeing a rapid acceleration of price point in these properties because there simply isn’t enough of them.
If you need advice on how to invest successfully, you can book an appointment by sending an email to firstname.lastname@example.org or you can give me a call/text me at (416) 996-5181. We’ll work together to make your real estate dreams come true in helping you build generational wealth and financial freedom.