Affordability in downtown Toronto continues to be an issue for buyers, rentors, and investors, that consistently comes up in the media. I am often asked the question, “Is there anywhere in Toronto or perhaps the GTA where you can invest for about $500 - $600/square foot?”
Unless you have $100,000+ of capital, purchasing or investing in downtown Toronto is challenging. Because of the lack of affordability in downtown Toronto, other areas become more attractive. One such area is Oakville. There’s a level of wealth and prestige associated with this town, as it’s home to some of the most expensive real estate in the country, including the large mansions on its waterfront. And now, Oakville will be home to a brand new development, Minto Oakvillage.
When MoneySense calculated the point total to rank Oakville in regards to where Toronto ranks, Oakville was number 1. In their rankings, Oakville was voted:
- The best place for new Canadians
- The third best place to retire
- The fifth best place to raise a family
All great things when looking at an area to invest capital, because these are your potential tenants.
People typically associate Oakville as that quiet, white Anglo-Saxon community of wealth and prosperity but a lot of things have changed over the last decade. 10 years ago, the visible minority population of Oakville was 18%. That has now jumped to 31%. Oakville is a great place to raise a family and is home to some of the top schools in Canada, both are things that new landed immigrants are attracted to.
When new landed immigrants research a good place to raise their family, they’ll see Oakville is number 1. On top of that, in regards to medical care and attention, there are over 220 doctor's offices including over 90 family doctors in Oakville. Looking at the economics, the unemployment rate in Oakville is 5.7%, and the average household income is over $160,000. All those aspects, education, high household wealth, low unemployment, medical care at your doorstep, high real estate values, is what makes Oakville an attractive community.
Commuting from Oakville to Toronto
Some may be concerned about the commute from Oakville to Toronto. The Minto Oakvillage development will be located at the corner of Trafalgar and Dundas. There is already a GO Station just south of Trafalgar and the city is also exploring the addition of rapid transit along Trafalgar, that’ll take commuters directly to the GO Station. If you prefer to drive, all units come with a parking spot and the Oakvillage GO train station has a very large parking lot. The development is ideally located close to many major highways. Minto Oakvillage is perfectly situated with easy access to public transportation and major highways.
If you’re from the Ottawa area, you’ve definitely heard the name Minto, as that’s where Minto Group’s headquarters are. They are the largest builder in Ottawa and a prominent builder in Toronto, building landmark buildings such as the Minto Quantum at Yonge and Eglinton. They are no stranger to the North York area and currently have a number of buildings under construction in downtown Toronto.
Minto Group is a very reputable company. In 2014, they were awarded Ontario Home Builder of the Year by the Ontario Home Builder Association. They pride themselves on ‘green building’, they aim for the top LEED standards, which is an environmental certification when buildings are built. A LEED standard, being high standard building, amounts to a higher resale value. Reports have shown LEED certified buildings show a 5% to 14% increase in sale prices.
In Minto’s 62 year history they have built over 60,000 homes. When you invest in a Minto development, cancellations and poor quality are never an issue.
I personally bought in the Minto Westside project, where we brought a lot of investors and sold nearly 30 units. Our values have skyrocketed. The one bedroom I purchase for $267,000 is now worth well north of $500,000. I’ve nearly doubled my money when I bought in the Minto Westside project. It's what you're going to get with the Minto Oakvillage project.
Maximize Wealth, Minimize Stress
Oakville is synonymous to wealth and prestige as many of the most expensive real estate in Canada is along the lake. But this new community, offer people affordable options.
The stacked townhomes, located in the red and yellow sections of the site plan, are two and three bedroom units ranging in size from 1,000 to 1,400 square feet. Some of the smart three bedroom layouts are going to be coming in under $500,000 (includes a parking spot). Minto Oakvillage is a great option for families that want that brand name location, that brand name builder, for under $500,000.
The deposit for the townhomes is only $50,000. With my many years of expertise in real estate, I would say it would be near impossible to find a property like this with parking for under $500,000. To compare things, a one bedroom condo under $500,000 with parking in downtown Toronto, extremely difficult to find. This is what makes this such an incredible opportunity, a three bedroom property at an affordable price point, close to downtown Toronto, walking trails and a brand new school.
The condo side of the development is located in the green area of the site plan. One bedroom units will be available at the low $300,000 mark, with a parking spot and a traditional 20% structure deposit of $60,000. These condos offer an affordable option for retirees looking to stay close to the city while living in a quiet family-friendly neighbourhood. They also present a very attractive opportunity for first-time investors as they don't usually have the capital reserves of a more long term investor.
So, to answer the question, “Can I invest for $500-$600 per square foot?” Yes, you can! This Minto Oakvillage development offers great affordability and opportunity, whether for an investor or for a family that's looking to get started. Maximize your wealth and minimizing your stress, rid yourself of any worry that most investors deal with by investing in Minto Oakvillage.