Four Ways to Invest in Today's Toronto Housing Market

In any down market, there are still good opportunities to invest. Yes, in a slow market you have to be more careful and you can't rush in blindly. But that's exactly why the potential is there. When the market is red hot, we're all firing off offers and even overpaying, because we know our money is getting more valuable by the day. Today is different, and you have to move with real care. If you're looking for the golden opportunities in this market, here are four. Not every one of these will fit every person, so see which one matches your situation.

1. First-time condo buyers

The market is full of condos, prices have come down over the last few years, and you have a huge amount of choice. This is where first-time buyers can make a strong purchase: get a real discount, put conditions on the deal, choose a closing date that works for you, and sometimes squeeze out even more, for example on a unit that comes with a tenant. Just know this is advice for someone planning to hold for about five years. I don't expect condos to jump in price a year from now, but today's price is a very good price.

2. Sellers of large, older condos

If you own a unit in an older building with a big floor plan, the numbers are on your side right now. Large condos, say over 1,000 square feet, are selling well. Their old problem was the high maintenance fee. Who buys them? Often people near retirement who are selling a paid-off house, going to cash, and want a spacious condo, and they'll even take one that needs renovation. If that's your unit, this is a good window to sell.

3. The assignment market

This is a market I'm active in every day. An assignment is when someone who pre-bought three or four years ago can't close, whether the money isn't there, their status didn't come through, or financing fell apart, and they want out. These are new, ready-to-move homes, and you can own one if you can get financing. But plenty of people make bad buys here, so don't assume that just because it's a good market, anything you buy is good. Know the builder, know the area, and know what the place should actually cost. And don't fixate on how much the original buyer is losing; look at today's price, because they may have overpaid in the first place.

4. Move-up buyers in the $1M to $1.2M range

I've shown in past videos, with the numbers, why this price range runs hot. If you own a freehold home here, you have a chance to use that strength: sell, and move up into a pricier home, say a detached around $2 million, where the market is calmer. The gap between the two has narrowed, so moving up costs less than it used to, as long as you sell your own place first. Sell a $1.6M home and step into a $2.5M to $3M one, and the discounts you can get on that purchase are real. It's a shame to have the means and not use a window like this.

So whether you're a first-time buyer, hunting assignments, sitting on a large condo, or ready to move up, these are the opportunities worth a closer look. If you'd like a straight answer for your own situation, fill out the form below and book a free consultation. Stay well and take care.