Downtown Toronto condos are always in high demand and can be sold at a premium price with the help of an experienced team of condo specialists. If you are interested in buying or selling a condo in downtown Toronto, remember that these condos are particularly attractive to working professionals, executives, and real estate investors.
The price of a premium resale condo in downtown Toronto ranges from $ 700 to $ 800 per square foot (resale condos). For a pre-construction luxury condo in downtown Toronto, the price per square foot ranges from $ 850 to $ 1,000 per square foot, and is even higher for a super-luxury building that includes projects such as the Four Seasons, One residences. Bloor Street and Trump Tower. Condos in downtown Toronto, near the University Line (Yonge-University line) TTC subway stations, are also very popular.
Toronto offers a safe haven for condo buyers looking to invest their money in a stable environment. There are lower interest rates, low unemployment rates, and strong economic growth in Toronto. However, before buying a condo in downtown Toronto, there are many things you need to know.
Downtown Toronto Condos – 2018 Prices
Everywhere you look in downtown Toronto, there are constant construction and development cranes, but finding a condo to call home is increasingly difficult and expensive for a legion of desperate renters.
Urbanation, a real estate company, recently compiled data to show that rental costs have skyrocketed along with a sudden supply shortage. According to Urbanation’s annual report, monthly condo rentals in the greater Toronto area increased 9 percent in the fourth quarter to an average price of $ 2,166. Median monthly price was even higher in downtown Toronto at $ 2,392. But it also appears that people are renting condos for the longer term, and a large number of construction projects remain incomplete, leaving fewer units available for condos. tenants.
Key findings from Urbanation
Rent per square foot has risen 5.8 percent to $ 2.93, marking a slower growth rate than in previous quarters due to compositional changes from an activity shift to the suburbs. The number of units leased in the fourth quarter fell 11 percent annually, while listings fell 16 percent. Supply has been affected by low condo completion and lower rental turnover rates. The average time between lease transactions has increased to a maximum of 23 months. The ratio of units leased through companies to individuals was 10 percent in the fourth quarter. Rents for available specially designed units built since 2005 increased 10.8%, with a vacancy of 0.3%, and rental development increased to a two-decade high with 7,184 units under construction. With an increase of 11 percent, the median cost of a studio condo is now $ 1,665. Renting a one-bedroom condo in Toronto would cost $ 1,847. Rent goes up $ 644 for a two-bedroom apartment and goes up even more for a three-bedroom apartment, which costs $ 3,663.
“Leasing activity declined in 2017 to 8.3 percent, the lowest level of condo rental billing since 2013,” Urbanation said. “The lower condo rental supply in 2017 was the result of a higher proportion of units resold, as investors took advantage of the rapid rise in condo prices, as well as a decline in completion of new projects to a low of four years.
“At the same time, high rent levels and new rent control regulations mean that tenants move less often, further reducing the supply available.”
But Urbanation believes that these drastic supply problems will only push developers to continue building new developments at a faster rate.
“The persistent strong rental growth throughout 2017 was simply the result of fundamentals in rental demand far exceeding supply,” said Shaun Hildebrand, Senior Vice President, Urbanation.
“This has increased the confidence of developers to add more units to the pipeline, a trend that should continue to meet future housing needs for GTA.”
How to save on a condo rental in downtown Toronto
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It sounds obvious, but the number one way to save on a condo rental in downtown Toronto is to know where you want to live. Toronto offers a wide range of neighborhoods, each with its own unique characteristics and downsides, especially when it comes to affordability. Knowing which Toronto neighborhood you like and what you could afford to live in will save you time!
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Given the competition brought on by the high demand for condo space, calling ahead and having a quick chat with the realtor can create a helpful connection. Being flexible with your availability for viewing times is also beneficial for general search.
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Be completely honest with your rental agent. Tell them the real reason you decided to leave your last place or your income details. When it comes to dealing with the real estate agent or landlord, they are your representative, so the more they know, the better they can present a clear picture of you as a tenant.
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An ideal minimum credit score is 680. If your credit score or employment situation is likely to hurt your rental application, see if there is someone who can sign for you, such as a parent / guardian or friend. If a cosigner is not an option, sometimes offering a few months’ rent in advance can help the landlord feel confident in your ability to cover the cost of the rent.
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As a general rule of thumb, the ratio of monthly rent to monthly income should ideally not exceed 33 percent.
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Applicants with long-term employment with a company have preference over newly employed persons.
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Owners prefer single occupants for a one-bedroom condo and no more than two occupants for two-bedroom condos, as it is commonly believed that more tenants will cause more wear and tear.
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Most landlords have a no-pet rule for their units, and this could be a deciding factor if tenants decide to reveal their pets. Although the Residential Leasing Law overrides the “no pets” provision, a landlord can decline an offer if a tenant mentions their pet.
