Buying a Downtown Toronto Condo: What You Need to Know

Real Estate

Condos in downtown Toronto are always in high demand and can be sold for the best value with the help of an experienced team of condo specialists. If you are interested in buying or selling a condo in downtown Toronto, remember that these condos are particularly attractive to working professionals, executives, and real estate investors.

The price of a premium resale condo in downtown Toronto ranges from $ 700 to $ 800 per square foot (resale condos). For a pre-construction luxury condo in downtown Toronto, the price per square foot is between $ 850 and $ 1,000 per square foot, and is even higher for a super-luxury building that includes projects like the Four residences. Seasons, One Bloor Street. and the Trump Tower. Downtown Toronto condos near University Line TTC (Yonge-University Line) subway stations are also very popular.

Toronto offers a safe haven for condo buyers looking to invest their money in a stable environment. There are lower interest rates, low unemployment rates, and strong economic growth in Toronto. However, before buying a condo in downtown Toronto, there are many things you need to know.

Downtown Toronto Condos – Prices in 2018

Everywhere you look in downtown Toronto, there are construction cranes and constant development, but finding a condo to call home is increasingly difficult and expensive for a legion of desperate renters.

Urbanation, a real estate company, recently collected data to show that rental costs have skyrocketed along with a sudden shortage of supply. According to Urbanation’s annual report, monthly condo rentals in the Greater Toronto Area have risen 9 percent in the fourth quarter to an average price of $ 2,166. The median monthly price was even higher in downtown Toronto at $ 2,392. But it also appears that people are renting condos for the longer term, and a large number of construction projects remain incomplete, leaving fewer units available to renters.

Key findings from Urbanation

Rent per square foot is up 5.8 percent to $ 2.93, marking a slower growth rate than in previous quarters due to compositional changes from a shift in activity to the suburbs. The number of units rented in the fourth quarter fell 11 percent annually while listings fell 16 percent. Supply has been affected by low condo completion and lower rental turnover rates. The median time between lease transactions has increased to a maximum of 23 months. The proportion of units rented through companies compared to those by individuals was 10 percent in the fourth quarter. Rents for available purpose built units built since 2005 grew 10.8 percent, with vacancy of 0.3 percent, and rental development rose to a two-decade high from 7,184 units under construction. With an 11 percent increase, the median cost of a studio condo is now $ 1,665. Renting a one-bedroom condo in Toronto would cost $ 1,847. Rent goes up $ 644 for a two-bedroom apartment and goes up even more for a three-bedroom apartment, which costs $ 3,663.

“Leasing activity declined in 2017 to 8.3 percent, the lowest level of condo rental billing since 2013,” Urbanation said. “The lower condo rental supply in 2017 was the result of a higher share of resold units as investors took advantage of the rapid rise in condo prices, as well as a decline in completion of new projects to a low of four years.

“At the same time, high rent levels and new rent control regulations are leading tenants to move less often, further reducing the supply available.”

But Urbanation believes that these drastic supply problems will only push developers to continue building new developments at a faster rate.

“The persistent strong rental growth throughout 2017 was simply the result of fundamentals in rental demand far exceeding supply,” said Shaun Hildebrand, Senior Vice President, Urbanation.

“This has increased the confidence of developers to add more units to the pipeline, a trend that should continue to meet future housing needs for the GTA.”

How to save on a condo rental in downtown Toronto

  1. It sounds obvious, but the number one way to save on a condo rental in downtown Toronto is to know where you want to live. Toronto offers a wide range of neighborhoods, each with its own unique characteristics and drawbacks, especially when it comes to affordability. Knowing which Toronto neighborhood you like and where you could afford to live will save you time!

  2. Given the competition caused by high demand for condo space, calling ahead and having a quick chat with the listing agent ahead of time can create a useful connection. Being flexible with your availability for viewing times is also beneficial for general search.

  3. Be completely honest with your rental agent. Tell them the real reason you decided to leave your last place or your income details. When it comes to dealing with your property agent or landlord, they are your representative, so the more they know, the better they can present a clear picture of you as a tenant.

  4. An ideal minimum credit score is 680. If your credit score or employment situation is likely to hurt your rental application, see if there is someone who can sign for you, such as a parent / guardian or friend. If a co-signer is not an option, sometimes offering a few months’ rent in advance can help give a landlord confidence in their ability to bear the cost of the rent.

  5. As a general rule of thumb, the ideal is that the ratio of monthly rent to monthly income should not exceed 33%.

  6. Applicants with long-term employment with a company have preference over newly employed persons.

  7. Owners prefer single occupants for a one-bedroom condo, and no more than two occupants for two-bedroom condos, as it is commonly believed that more tenants will cause more wear and tear.

  8. Most landlords have a no-pet rule for their units, and this could be a deal breaker if tenants choose to reveal their pets. Although the Residential Leasing Law overrides a “no pet” provision, a landlord can turn down an offer if a tenant mentions their pet.

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