Toronto is the hottest real estate market in Canada and perhaps in the world today. The average home – detached or semi-detached – stands at around $1 million, and it doesn’t look like it will be going down anytime soon, even if the provincial government decides to intervene. With the data suggesting that more gains are to be expected, investors are diving in.
Real estate development is becoming a key area in the Greater Toronto Area. Whether it is commercial or residential, the city needs a greater supply of units for residents and businesses alike, and companies and investors alike are seeing a massive opportunity to cash in. But just because this is a seller’s market, it doesn’t necessarily mean that easy profits await. Like any other commercial venture, it takes patience, dedication and time to succeed.
Here are five activities that can lead to success in real estate development:
📰 1. Research Market Trends in Toronto
Will the real estate market continue to boom in Toronto? That’s what all of the media outlets and industry experts contend. But perhaps there is a trend that is occurring that everyone is missing.
Whatever the case, you should always research market trends in a city that you’re investing in. This could consist of public policy or financial moves taking place by the big banks.
By researching market trends, you can garner a better grasp of what may or may not happen in the short- and long-term. Since you’re spending a lot of money, due diligence is a must.
💰 2. Get Pre-Approved for a Mortgage
Prior to putting all of your eggs in one basket when it comes to a property you’re interested in, it is first vital to get pre-approved for a mortgage. Otherwise, if you fail to get pre-approved, you will lose out on an incredible opportunity and will have wasted all of your time and energy.
Simply put: first get pre-approved for a mortgage by your lender and then get the property.
🔍 3. Seek Out Signs of a Hot New Area
By now, you would think that every part of Toronto, or some other hot real estate market, has already been invested in. However, that isn’t always the case because there may be an area that is up-and-coming. But it is up to you to look out for those potential signs.
For instance, a new school is perhaps being erected or a new Starbucks location is being constructed. There is always something that another analyst or investor may have missed.
🏢 4. Pay Attention to the Outskirts of the City
Yorkville, Harbourfront, Leaside, Forest Hill and the Danforth are all popular parts of Toronto. It can be tough to make an immense profit in these areas. Perhaps it’s time to look at the outskirts.
Although the GTA is seeing rising housing and commercial values, it is still vastly underestimated and undervalued. And this is what you may have to do with your real estate development venture: seek out opportunities in the outskirts of the city.
💼 5. Look for Advice from Industry Leaders
There are some investors who have been making money from real estate for thirty years. Others have been in the business since they were children and have seen and done it all.
It is important to look for advice from industry leaders or experts who dedicate all of their time and resources to real estate. This could be a real estate agent, a banker or property investor. Even if you happen to run into advice by chance, you should hold on to those words at all times.
Real estate development is a tough business for anyone to enter. It takes a lot of initial investment, a lot of wheeling and dealing and, of course, a lot of collaboration with the municipal government (bureaucracy always hinders a business venture).
Toronto’s real estate market is flourishing, and there are still opportunities abound, particularly with the Bank of Canada (BOC) leaving interest rates at historic lows of 0.5 percent. It is true that it may be too late to get on the ground floor in the Big Smoke’s real estate market. However, you can always find other revenue streams in real estate development.