With property prices in many parts of the GTA continuing to rise, more Canadians are being forced to look further afield in their search for a home. Vast swathes have now accepted that the homeownership dream is unattainable and are refocusing their searches on renting luxury condominium developments for the long-term.
“The affordability factor is one of the main reasons why more Canadian investors are buying into condo developments,” says Kirin Singh, Vice President, ROi Developments.
When renting out a detached or semi-detached residential home, there’s always a risk that a problem tenant will cause damage to the outside of the home, which will bring down the value of the property. The collection of condo fees mitigates that risk.
“One of the biggest things in real estate is curb appeal, and when you invest in a condominium you can regulate that and control how the exterior of the property looks,” Singh says. “When a property is freehold anyone can do whatever they want. If you drive by a freehold rental building a year after it has been built, you can be sure it will not look the same as when it was brand new.”
There has long been an obsession with location in the real estate investing and while Singh understands the value of location, she believes another sometimes overlooked factor to be just as important: transportation. “Technological advancements mean that tenants can work remotely from anywhere and are not tied to downtown Toronto,” she says. “Work-life balance is becoming more important to people and living somewhere affordable with good transportation links is an option that more and more Canadians are now taking.”