Determining if Toronto Condos Are a Good Investment

How good of an investment are condos in the greater Toronto area? It depends on the area and the condo itself, among a few other major factors.

If you're thinking about selling in the near future, you want to see whether the condo is appreciating in value. Contact your agent and find out if values in the area have increased during the last three to five years. The buildings behind me in the video above, for example, are great condos that have gone up in value over the last couple years.

Another thing to account for, if you're using the condo as an investment property, is how easily you can rent it, and how much it will rent for. You also want to clearly verify all the numbers, like maintenance fees and taxes. If you're looking in an area with good schools, good jobs, and good transportation, chances are it will be quite easy for you to find a tenant who will stay long-term.

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If the building has been appreciating, and the rental income covers your payments, condos are a great investment!

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Make sure you're aware of the area and whether there is construction nearby. Buildings going up nearby can affect the value of your property in the near future. Newer buildings could obstruct your view, for example, and decrease the value.

If you're curious about condos or any type of real estate in the greater Toronto area, give me a call for a free real estate consultation. I'd love to sit down and talk with you!

5 Closing Costs Buyers Should Expect

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As a buyer, there are a few costs you should expect to pay at closing:

1. Land transfer tax: When you buy a property, you are expected to pay a one-time tax, similar to paying the fee for a lawyer, and the cost of the tax is based on the purchase price of the property. Fortunately, first-time home buyers do get a deduction on the cost.
2. Lawyer’s fee: This will cost you about $1,500, and that goes to the lawyer you selected to close the transaction. They handle all of the paperwork between you and the seller’s lawyer.
3. Title insurance: This insurance fee is about $300 to $400. Title insurance protects you from fraud on property taxes and anything else that could be wrong on the survey.
4. Registration fees: You have to register two documents with the government: the deed and the mortgage. These documents cost $75 each.
5. Any additional out-of-pocket fees: These run from $300 to $400 and go to your lawyer to cover any searches or due diligence.

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Title insurance protects you from fraud on property taxes.

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If you have any questions, give us a call or send us an email. I would be happy to help you!

Avoiding the 3 Common Toronto Seller Mistakes

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Lots of homeowners make the same big mistakes when selling their home.

1. Pricing the property too high. This causes other homes in the area to sell, because odds are if a buyer sees two properties in the same area but one is priced much lower, they'll go for that property. Even if you reduce your price down the road, the home becomes less attractive to buyers, and they perceive it as having less value.
2. Hiring the wrong agent. It's important to recognize that hiring an agent is a business decision, not a social decision. Hire an agent who can get the job done, not because they're a friend or family member. They should have a record of sales performance and have a track record of selling homes in the area in a similar price bracket. Interview them to make sure they have a strong marketing plan, and your best interests at heart.
3. Not getting rid of clutter. Your home needs to be in a condition to show. If you have pets, ensure that rooms are free of any pet messes. The less clutter, the larger a property looks. Give buyers the chance to walk through the home and imagine themselves living there.

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Hiring an agent is a business decision.

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Thanks for tuning in today! If you have any questions for me or want to sit down for a real estate consultation, please feel free to give me a call or respond to this email. I'd love to work with you!