real estate a good investment

Is real estate a good investment in Toronto?

Want to know if real estate is a great investment in Toronto? Let’s get right into the answers so you know where to start.

Benefits of Investing in Toronto Real Estate

One doesn’t need to be well-versed in real estate law to understand the dynamics of this investment. To understand more about the value of real estate investing in Toronto, we’ll run through what the numbers say:

  • High Appreciation, Low Fluctuations

Sit down with your financial planner and run through the basics of land supply and demand in the city. Simply put, the land is scarce in Toronto but the demand is ever-growing as the city develops.

Over the past 10 years, the market annual appreciation of residential real estate in Toronto has been at a steady 8.3%. It’s almost as solid as the appreciation of diamonds at high-end jewelry stores.

  • Increasing Rent Value

People who rent apartments understand how hefty monthly rents can be. Still, since the demand is high, residents often settle for renting agreements instead of purchasing their own homes. 

From the investor’s perspective, this is naturally a solid business opportunity to earn a steady income. Even short-term rentals can prove to be a great stream of excess cash in the city.

  • Growing Real Estate Opportunities

In the 3rd quarter of 2020, Toronto has the highest active crane count in North America with 124 cranes. There’s a reason for that. With valuable investments in gentrification, it’s always a wise choice to move homes toward Toronto. 

Apart from this, there are numerous city developments that directly improve the quality of living in the area. For instance, residents may not need private riding services anymore due to improvements in public transit.

Investing in a New Property

The first major real estate investment option in Toronto is to construct a new property. Here are some of the best options with solid ROIs:

  • Condos – Great opportunity for cash flow and high market appreciation over time. 
  • Income Properties – Properties like rented-out apartments appreciate faster than condos. Even renovating a basement to rent out can cover about $200,000 in a mortgage.
  • Mixed-Use Properties – Properties that contain both a commercial and residential component. The buying process is different from residential properties so a seasoned real estate agent is definitely necessary in the picture. 

Flipping or Renovating a Property

The second major real estate investment option is to flip properties. This basically means buying rundown properties, renovating them and checking for any repairs, before selling them again.

A high-quality flip can sell for up to $1,300,000 depending on the housing demand in the area. However, this is also the riskiest investment since there are a lot of drawbacks involved,

For instance, it’s time-consuming. Shifting to a different roofing system alone can set you back months and thousands of dollars.

That’s why it’s necessary to research the demand in the area first to evaluate the returns. 


With Toronto’s steady economy and growing demand for land and housing, real estate can be a solid investment. Find out more helpful articles like this here on our site!