Toronto housing prices have dipped almost across the board, with the exception of condo values. For high-end buyers seeking a detached, semi-detached, or townhouse, choosing now as the time to buy may save you thousands and potentially hundreds of thousands of dollars.
To be clear, for the purposes of this article, ‘high-end’ means any real estate that has been valued at $1.5 million or higher. In this group of Toronto homes, sales are barely happening. Prices are dipping and some sellers don’t really know what to do about it.
Properties with price tags in the $2-$4 million range have been some of the most vulnerable to what’s been happening in the marketplace in the last six months. For upper middle class Canadians seeking to make an investment in Toronto real estate, you have more leverage today than you’ve had in years. Take advantage!
Define whether this is an Investment or to Live in
Before doing any sort of search for Toronto real estate, you need to ask yourself what the purpose of buying a property is. If this is more of an investment, what you need to focus on evidently is the dollar amount and nothing more. Aim for a solid bottom line and go for the best deal you can find.
Then again, if you are looking for more a place to live, there’s a lot more to think about such as amenities around the property, the neighborhood, location of schools, and other factors. Most people will fall somewhere between 100 percent investment and 100 percent to live. Knowing where you are on the spectrum though is important.
The housing dip has affected different neighborhoods differently. Before looking at listing prices, focus on the neighborhoods that appeal to you most. It does not hurt to do some research into where prices have dipped the most and where high-end homes can be located. When you have a defined list of neighborhoods that appeal to you, now you can begin your search for properties.
The Toronto Housing Market will Cool
Though we don’t know when, the Toronto housing market will inevitably stabilize and the conditions we are seeing today will dissipate. Knowing this, if you are searching for high end real estate, you need to be ready to close a sale today if need be. There are many sellers motivated to sell and however you wish to structure your deal in terms of your proposed dollar amount, you may be able to get some very favourable terms.
Investing in a Condo rather than a Home
If making a good investment is at the top of your priority list, choosing to use the money you would buy on a non-condo home and putting it towards a single or collection of condos may be recommended. Though condos don’t work for every buyer, it’s an option.
There is some Competition
Even though sellers in some areas may be having a hard time getting their properties sold, there is more competition among high-end buyers. Be aware of this when structuring how much you are willing to offer for a property.