4 Best Toronto Neighbourhoods to Invest In

Justo Team | January 26, 2022

No doubt, Toronto and the surrounding suburbs are expensive right now. Here are statistics about property values in the city of Toronto at the end of 2021.

The average 3-bedroom family home in Toronto currently lists for approximately $1.5M.

The average 3-bedroom townhouse in Toronto currently lists for approximately $1.2M.

The average 2-bedroom condo in Toronto currently lists for approximately $853K.

For many people, these are large numbers, and can make investing in property feel out of reach, especially when you consider the large down payment required to purchase a home.

However, if you can find a way to make it happen, we believe that investing in Toronto real estate is one of the smartest and most lucrative investments you can make.

Why Is it Smart to Invest in Toronto Real Estate?

It’s been said that it’s smart to invest in any kind of real estate, since, over the long haul, real estate tends to almost always increase in value. However, that doesn’t make all real estate a smart investment. In some smaller communities or towns, it’s possible for real estate to depreciate in value, but it’s even more likely that the appreciation of the properties isn’t enough to make the long term investment of time, repairs, upgrades, etc worth it.

Toronto real estate, however, is almost always a good investment. Here’s why:

Toronto has a high rate of immigration. There are always people coming into the GTA from all over the world, leading to plenty of renters available to live in your rental investment space. But immigration always contributes to the overall real estate market success since it brings plenty of high-paying skilled labour jobs into the area. The influx of immigrants into the area will always help make Toronto a great place to invest.
Toronto is a highly-educated city. It’s not a secret that higher education helps pay the bills. With that in mind, it’s easy to equate that a city with a lot of educated people can continue to afford higher rent and mortgage payments, making Toronto a good place for investors. According to the 2016 national census, of the 3.1 million people living in Toronto aged 25 to 64, two thirds have a post-secondary degree, certificate, or diploma and only 300,000 have less than a high school education.
Toronto is growing – FAST. Even during the pandemic in 2020, Toronto added 46,000 people to its population, a fact that Toronto mayor John Tory believes is a significant reason the economy in Toronto remains so strong:
“I’m incredibly proud of the growth we saw in the City of Toronto again last year, as one of the most livable and diverse cities around the world. Toronto is Canada’s economic engine – home to residents with incredible talent and innovative businesses. The steady increase in population helps fuel the economy and will be an important part of our recovery efforts as we emerge from this pandemic absolutely determined for our city to come back stronger than ever.”
Toronto is a desirable city to live in. People love Toronto, and it continues to evolve and thrive with a palpable vibe its residents (and visitors) love! Downtown Toronto and the surrounding neighbourhoods are riddled with world-class and quaint local restaurants, gorgeous parks and outdoor living spaces, festivals and events for families, and enough shopping centres and conveniences to keep buyers completely comfortable without having to leave the area. Even still, the waterfront, nearby communities like Mississauga, and even cottage country are within a convenient distance.

It’s easy to see there are plenty of solid reasons why a Toronto real estate purchase is a smart and solid investment, and why residential housing in the city, in almost any location, is always in demand. A rising GDP, a constant influx of population, proximity to major highways and international border crossings, a multicultural and diverse community, vibrant and thriving neighbourhoods, a spectacular downtown core, and plenty of jobs in a growing economy… we could list reasons Toronto is one of the best cities in the world all day long!

If you’ve decided to search for an investment property either to live in or use as a rental house or condo, one great question to ask yourself is, “Where can I get a good deal in an up-and-coming neighbourhood in Toronto?”

Where Should I Invest in Property in Toronto?

Real estate investors will tell you there are still deals to be found even in a city where it feels like prices climb every day. Trends show there are still dips in the market, so for a great deal on Toronto townhouses, condos, and detached houses, speak to a realtor who can help you.

It’s easy to find expensive properties in hot neighbourhoods where developers have plenty of new builds on the rise. But we believe one of the best ways to invest in property is to choose a neighbourhood that is on the cusp of becoming the hot new place to live and finding a good deal on a pre-construction project or fixer upper.

Four Up-And-Coming Toronto Neighbourhoods You Can Invest in Today

East Toronto.

You’ve likely been watching the West Toronto real estate boom for the last few years. Condos have been rising up practically overnight in the Liberty Village neighbourhood, Queen West, and King West Village, and developers have been smart about building more than just residential units. These redeveloped neighbourhoods have been designed with every convenient tenants and property owners could want: Grocery stores, shopping centres, restaurants, entertainment – they’re completely self contained neighbourhoods with plenty of public transportation options to make access to the rest of Toronto easy.

In fact, maybe, they’ve built them to be a little too well! We say this tongue and cheek, but the convenience of these neighbourhoods has made them exceptionally desirable – and as a result, not so affordable.

As the west end reaches capacity and residents are forced out, we think they’ll naturally spill into East Toronto. East Toronto neighbourhoods like St. Lawrence Market and East Bayfront will likely see new developments in the next year, and even the Sugar Beach area may see an influx of pre-construction builds.

Want to learn more about new developments in East Toronto? This could be your chance to get a great deal on a new property in Toronto. Contact Justo’s agents today. We can show you what’s on the horizon in this beautiful area.
The Beaches.

The Beaches have always been known for a bit of a chill, lake lifestyle, and its well-developed community has plenty of variety for almost any lifestyle. You’ll find detached houses, row homes, bungalows, Victoria-style fixer uppers, and even a few new condos. In recent years, this community has become diverse in income demographics as well, and investors are moving in to revitalize this area.

It’s still very possible to find great deals in this neighbourhood, but you have to move quickly. Work with an agent to keep an eye on this area and be notified quickly when a hot deal hits the market.
The Annex.

Located alongside the north side of the University of Toronto, The Annex brings with it all the beauty and culture of classic Toronto. This area is likely not for a first-time investor; the detached family homes and mansions in the area require significant down payments. But the benefit of this neighbourhood is that the location and community feel make it a solid investment.

The thing to realize about this neighbourhood is that there are significant dips in the market, and getting in on a great deal has a lot to do with timing. Houses sell quickly, typically within 2-3 weeks, so you need to be prepared to jump on a property when it comes available.

The best way to be prepared is to get pre-approved and be ready to make an offer when you see a house you want. To be notified quickly about properties coming on the market, work with an agent who can keep you informed.

Rosedale.

If you’re looking to invest in luxury property, possibly as a long term family asset, Rosedale is the place. Real estate prices in this area aren’t cheap, but if you have the money to spend, Rosedale is an excellent option for you.

Rosedale has some of the best schools in the city and some of the most beautiful homes in the downtown area. When considering an investment of $4M+, you might not automatically think about this neighbourhood. But, there are no other communities in Toronto with this type of prestigious feel, still within a short distance to downtown, and with the potential for serious financial appreciation.

Homes for sale in Rosedale can be few and far between, so if you see one you like, don’t wait! Make the investment and we think you’re likely to reap rewards even within a few short years. If you plan to hold on to your property for a lifetime, there’s no doubt Rosedale is an excellent investment in your future.

Whether you plan to invest in a condo, a detached home, a fixer-upper, or a luxury property, there’s almost no way to go wrong in Toronto right now. Of course, you want to find the best deal, and the sure way to do that is to work with a broker. You’ll want to find a broker who knows the market exceptionally well and who can provide advice as you plan your investment strategy.

Your list of wants and needs will likely be different if you’re considering a short-term investment or a rental property, and our realtors at Justo will be happy to help you decide what amenities you need to keep in mind. Contact us today to get started!