Timing is everything...

We're in a buyer's market, mortgage rates are at historic lows, and the rental vacancy rate in Toronto is down to only 2.1% All of this points to one thing: now is a great time to consider a condo investment. Let's examine each of these factors in a bit more detail.

Buyer's Market: you are much less likely to encounter a multiple-offer scenario, and there is room to negotiate that even a few months ago did not exist. High-demand units (close to public transit, retail, amenities) are in greater supply than we have seen for quite some time. These units are the easiest to rent and tend to attract the most dependable tenants.

Mortgage Rates: cash flow is key. With a lower mortgage payment, your rental income is covering a greater proportion of your monthly carrying costs. With a well-informed purchase, you may even find that your rental income covers 100% of your carrying costs including maintenance fees and property taxes. And don't forget, as your mortgage matures, a greater proportion of principal is being paid down each year.

Rental Vacancy Rates: many people are putting off buying in the short to medium term, and entering the rental market as a result. This has driven down the Toronto vacancy rate to 2.1%, from 3.2% last year.

Please contact me to discuss the most suitable condo investment options within your price range.

Think Local

Many are concerned about the slowing economy and its effect on real estate. Making sense of the huge quantity of real estate information and analyses sent our way can be a real challenge.

Always keep in mind that the real estate market is local in nature. Consider a 3-bedroom bungalow in North Etobicoke versus a 1-bedroom condo Downtown: although both properties are located in Toronto, each will attract a different set of buyers coming from different economic circumstances. The supply and demand for both these properties are influenced by general economic conditions (such as mortgage rates), but they are also very much influenced by local conditions: is the neighbourhood population growing or shrinking? Are new properties being built? What are the local business conditions? These are just some of the factors that will impact the value and volume of real estate transactions in each neighbourhood.

For real insight into the market, it's a good idea to talk to a Realtor that focuses on your neighbourhood of interest.

The Entertainment District

The mix of restaurants, clubs, condos and offices roughly bounded by Spadina, Queen, University and Front is known as the Toronto Entertainment District.

The District is becoming more urbane with each passing day. Nightclubs are making way to Class A office space, and surface parking lots are being scooped up by developers and transformed into high rise condominiums. Daniels is developing a block-wide landmark project at the corner of John and King known as Festival Tower. The base of the tower will serve as the future home of the Toronto International Film Festival, bringing incredible exposure to the neighbourhood each September.

Nearly every remaining surface parking lot in the District is slated for a new high-rise, and over the coming years many thousands of new residents will call it home. With its central location close to the shopping of Queen St, the University subway line, Bay Street, and the lake, the Entertainment District is an excellent option for young professionals who don't mind having some excitement right at their doorstep. For up to the minute information on any of the new or existing condos in this neighbourhood, please contact Oliver at 416-522-6636.

www.mycitycondos.ca is live!

Many thanks to Andrew at Agent Image for all his efforts in getting every last detail just right. Thanks also to my Broker/Manager Trish for all her helpful input.

Check back here on a regular basis for news and commentary on the Toronto real estate market. I will be covering topics that are of vital interest to the urban condo dweller, along with insights that you may not find elsewhere. Stay tuned!