The west side of Midtown Toronto is experiencing rebirth—and promises opportunity for the right kind of investor.
“It would be great for investors who want to get into the Toronto market. It would be somebody in their late 20s and early 30s, a young professional,” said Huong Luu, a real estate coach and consultant. “It’s also ideal for parents who want to help their children get into their first property.”
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The strip on St. Clair Ave. W., between Keele St. and Caledonia Park Rd., will soon be dotted with new condos Luu believes can help build a portfolio. She does have a caveat, though:
“If they were to rent it, they would be in negative cash flow, but there are ways to run the numbers so that if that property appreciates 8% in five years, they’d make $180,000 in appreciation growth over that time.
“If they were to rent it out, the renter would actually help them pay down their mortgage by about $49,000. Even though they negative cash flow every month, they would actually see some money five years down the road.”
The neighbourhood has dedicated TTC streetcar with tracks in the middle of the avenue, a new police station, and it is close to Black Creek.
Adiharma Purnomo, director of development project management of Graywood Developments, which is developing a new condo called SCOUT, notes that neighbourhood already possesses many cornerstones for development.
“The ‘Main Street’ element already exists,” he said of St. Claire Ave. “It is located between Little Italy, the Junction and the stockyards.”
Having personally scoped out the site for SCOUT, and its predecessor SCOOP Condos, Purnomo cites rapid appreciation throughout the neighbourhood.
“It has to do with the value,” he said. “We know this area has been charging a lot lately. We started the evolution of this neighbourhood and there are a lot of amenities that are there, and they will support investors. Nearby schools are already in existence and there’s the public park.”
An additional draw is the proximity to downtown and the Yonge-Eglinton hub, he added.
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