Introduction
Toronto’s real estate market is cooling down, leading to more homes being listed for sale. Many buyers and investors are avoiding large projects because they don’t have enough time or money, especially with higher interest rates. As a result, homes that need renovations are taking longer to sell.
This trend is making the price difference between renovated and unrenovated homes wider, which creates opportunities for smart investors. With more homes for sale and slower sales of fixer-uppers, now is a great time to buy discounted properties that are likely to increase in value.
Join us as we discuss these opportunities in more detail!
Real-Life Example in Midtown Toronto
You can get a great deal on a fixer-upper semi in midtown Toronto for around $800,000. It might need $200,000 or more in renovations, but similar fully renovated homes in the area are selling for $1.25 million.
That’s potentially a $250,000 profit if you manage the project well!
Why Take On Value-Add Projects Today?
Value-add projects have always been around, but in the past two years, rising interest rates and falling prices have diminished their profitability.
A few years back, during the low-interest COVID era, every investor jumped on these projects because capital costs were low, narrowing the gap between project homes and turnkey houses.
Today, conditions are ideal for maximizing value-add opportunities. If you have the initial capital, time, and expertise, now is the time to take on these projects in Toronto!
The Smart Way to Cash In
You could sell right after completing renovations, but taxes and fees would reduce your profit. That’s why experienced investors prefer to refinance post-renovation. This strategy allows you to defer taxes and transaction fees, often recouping almost all your initial investment. Plus, you retain ownership of the property, benefiting from ongoing cash flow and long-term appreciation.
How We Can Help
As you can see, we’re most excited about these types of projects in the Toronto real estate market lately, and we’re eager to share more details if you’re interested. Reach out to our team if you want to learn more!
Whether you’re eyeing a ready-to-go multiplex or need coaching to convert single-family homes into multiplexes, we’re here to help. 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: 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 support you through the whole process.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Ready to get started? Click on the link below, and let’s start working together!
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!
