Think Toronto income properties doesn’t cash flow? Too expensive? Not worth it anymore?
If you’re a new investor sitting on the sidelines, waiting for the “right time” to get in — this might be it. Right now, the numbers are finally starting to make sense again.
Let’s bust five of the most common myths holding new investors back — and show you why this year might be one of the best times to invest.
Myth 1: Toronto’s Income Properties Are Way Too Expensive
Yes, Toronto real estate isn’t cheap — but it’s not as out of reach as you might think.
Prices have dropped significantly over the past couple of years, and we’re seeing more properties under $1M than ever before. Interest rates pushed many end-users out of the market, opening up more room for investors.
The key? Look in rental-heavy neighbourhoods where homes are priced lower and cash flow is stronger.
Want even more upside? Buy in early-stage gentrifying areas. You’ll pay less today and likely gain more in appreciation over the long term.
Myth 2: Toronto’s Strong Appreciation Days Are Over
We get it — the 7-8% annual price jumps from 2016 to 2021 aren’t coming back anytime soon.
But here’s what’s real: Toronto prices are down 15-20% from the peak and have stayed stable for over two years. That usually means we’re closer to the bottom than the top.
And when Toronto real estate moves? It moves fast. Getting in now gives you more upside potential.
What's Happening In Toronto's Real Estate Market?
Want to know what’s been going on in Toronto’s real estate scene lately? Curious about where the market is heading? Our expert insights have you covered!
Myth 3: Investing in an Old House Is a Bad Idea
Older homes often come with better layouts for multiplexes, larger lot sizes, and fewer restrictions.
Yes, you may need to budget for renovations, but the value you add often boosts your rents and overall ROI significantly.
That’s the foundation of the BRRRR strategy (Buy, Renovate, Rent, Refinance, Repeat).
Myth 4: Only Nice Neighbourhoods Appreciate
It’s true that nicer neighbourhoods are more established, but they also come with higher prices and lower rent yields.
Emerging neighbourhoods, on the other hand, offer way more upside. These are areas where we’re seeing major infrastructure investment, population growth, and development activity.
Invest early, and you capture both stronger cash flow and better appreciation.
Myth 5: Toronto Properties Don’t Cash Flow
This was true a few years ago. But not anymore.
Multiplexes in Toronto today can generate 5%+ cap rates, which usually means positive cash flow — even after your mortgage.
Condos? They’re still sitting around 3% cap rates, which usually means negative cash flow. That’s why we don’t buy condos.
Focus on the right type of property, in the right area, and Toronto absolutely does cash flow.
What Toronto Real Estate Investment Is Right For You?
Still Not Sure What to Do?
Looking to build real wealth with real estate?
Toronto income properties are one of the most powerful ways to generate steady cash flow and long-term appreciation—when you know what to look for.
Want to see what’s possible for you? Book a strategy session with us here.
