This is for educational purposes only; it does not guarantee future performance or serve as financial or tax advice.
Best Condos to Invest in Toronto 2025: Are They Still Worth It?
If you’re thinking about buying a condo in Toronto this year, you’re not alone. Condos are still one of the most searched investment options. But here’s the thing: just because condos are popular doesn’t mean they’re profitable.
We recently worked with a client comparing two very different options:
A newer condo near Toronto’s Distillery District
A detached house in midtown Toronto with potential to convert into a triplex
Same price. Totally different outcome.
The Condo: Easy on the Eyes, Rough on the Numbers
The condo was a 2-bed, 2-bath unit, priced just under $800,000. Move-in ready, rented for around $3,200/month. Sounds solid—until you dig deeper.
Here’s the monthly breakdown:
Condo fees + taxes: $1,200
Mortgage + expenses: negative cash flow of ~$1,000/month
That’s before factoring in vacancies, special assessments, or even basic maintenance. You’re losing money every month, with no room to force appreciation or boost income.
So while this might be one of the “best-looking condos to invest in Toronto,” financially it’s a dead end.
The House: More Work, But Way More Upside
Now let’s look at the house. Also around $800,000 purchase price, but needed $150,000 in renovations to become a legal triplex.
Total upfront investment (down payment + renos): around $340,000
Here’s what that unlocked:
3 legal rental units
Over $6,000/month in gross rent
Positive cash flow: ~$2,000/month
Operating costs were about the same as the condo, but the return was night and day.
Equity Lift & Refinance Strategy
After renovations, the triplex is expected to appraise at $1.1M. That’s a $150K equity lift.
Refinance math:
Pull out ~$240K
Leave just $100K of your own capital in the deal
Keep a cash-flowing, appreciating asset
The condo? No reno, no refi, no equity lift. Just slow burns and hope.
What About Long-Term Appreciation?
Let’s be real. Condos crushed it from 2010 to 2020. But since interest rates jumped in 2022, condo values have cooled off—and stayed there.
Meanwhile, Toronto freeholds with rental potential are holding strong:
Less supply, more demand
End-users and investors want space
More ways to force appreciation (legal conversions, laneway homes, etc.)
If you’re comparing the best investment condos in Toronto vs. income-generating houses, houses are pulling ahead in 2025.
Should You Still Buy a Condo in Toronto in 2025?
There are still good condo investments out there—but they’re few and far between.
If you’re looking for the best condo to invest in, here’s what to watch for:
✅ Low condo fees
✅ Strong rental demand
✅ Ability to hold long-term
❌ Avoid: Negative cash flow, high fees, zero upside
For most investors, legal multiplexes in Toronto’s established rental pockets are delivering way better results—both short and long term.
Want Help Finding a Real Investment Property in Toronto?
If your goal is to build long-term wealth, cash flow matters. Value-add potential matters. And yes, appreciation matters too. In this head-to-head comparison, the detached house beat the condo on all three fronts — even though the purchase price was the same.
If you’re ready to learn more about how we find and structure high-performing multiplex deals in Toronto, reach out. We’ll show you how to make your money work harder — and smarter.
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Want to see what’s possible for you? Book a strategy session with us here.
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
