Pros and Cons of Buying Homes in Downtown Toronto
Buying homes anywhere in the country comes with pros and cons. Downtown Toronto continues to grow, and as it does, many people are wondering whether they should buy in the area or stick with renting, or if they should move to the Toronto area at all.
It has been shown that within many cities, it is actually more expensive to rent rather than paying off a mortgage. This is shown in the monthly cash flow charts and the incoming and outgoing income of those living in the area. As rent prices rise, many individuals are considering purchasing in the market instead of renting.
Let’s get some of the disadvantages out of the way about city living and purchasing a home in the area and then talk about the advantages, as well as why it might be the best time for you to consider purchasing, instead of renting, a home in the Downtown Toronto area.
You might be surprised to know that buying might be something in your future.
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Disadvantages of Downtown Living
Some people prefer to have that quiet living that they can come to expect from being outside of the major city. This can be anything from having more land to perhaps being able to enjoy a quiet night in. If you live in the middle of a city, you may not be able to do this.
The noise tends to be a disadvantage to those that want a quieter approach to where they choose to live. However, not all of the homes in the area are in high traffic spots and adding trees and other foliage around the home can prevent the sounds from coming into your house when living in the city.
High Volumes of Traffic
The amount of traffic that is found in the city is also a disadvantage to some since they want to be able to get from one place to the next rather quickly. If you have to bring the children to school and go to work, but you want to stop for coffee, this can be done but you have to leave early to get everything done on time and people where they need to be on time.
Some people have found that purchasing a home close to where they work and the school has helped them reduce the amount of time it takes them to do everything, since they can pretty much walk to where they need to go from their home, as many of the places are just a couple of blocks away from them. This solves the traffic problem in the area if you don’t have to drive.
Parking is Non-Existent
Those that are in the area will find that parking is lacking throughout the city. If you have come to the city for a show or other purpose, you have probably already found this out. If you are looking to purchase a home here, and do not intend to walk into work, then know if the building you are working in is going to have a parking garage or lot for you to use, as the parking is not something that is offered a lot in the area.
As with any city out there, parking tends to be a problem. It is something that may not break the deal that people have when choosing a place to live. It might be something that is not such a big deal in the end.
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Advantages of Downtown Living
Safe, Friendly, and Economical
As one of the best ranked for being the most economical city out there, Toronto makes the top of the list according to The Economist magazine that based as the World’s Best Place to Live in an economic fashion.
Not only that, but Toronto is also ranked highly for its safety, business environment, safety and security, and democracy in the area among other things.
The culture and community of this city are also one of the best. You can find a multitude of friendly, smiling faces when you’re walking down the roads. If you stop in a shop or a food vendor, you are sure to grab a bite to eat but also make friends and get to know more people. The area welcomes visitors like that.
It is also thought of as a start-up hub, making it an ideal place for those looking to build, start, or expand a business. It has a great environment that you can use to your advantage.
With so much to do and see in the area, it is no wonder it is a great place that many call home and that welcome everyone inside. With many of the downfalls being overturned with awesome things instead, there is not much else left to question in the way of whether or not you want to call Downtown Toronto home, as well.
The neighbourhoods are amazing, with plenty of choices to go with and you can find that in those once crowded areas, many people are considering leaving the city scene, opening up even more areas to move in and call your own when thinking about living in Toronto.
Raising Kids in Downtown Toronto
If you have children, then knowing more about raising them in the area and the school ratings are important. Toronto is a fast-paced place, and sometimes raising kids in this environment is not what a lot of families want.
On the other hand, living in a city where everything is accessible, where there are plenty of opportunities, and many other kids might be the best place for any kid to grow up.
The area has multiple schools that children are able to go to from primary school up to senior high school, as well as both private and public options for those families that want to have a choice on which they want to send their children to.
The schools are at a higher level of achievement, allowing children to grow to their full potential but also have alternative means to learning and developing great skills to hold them through to adulthood. This is something that really looks towards the future and those that are considering moving to the Downtown Toronto area.
There are also parks and many children-oriented activities and centers for these children living in the area to make use of. There is plenty for them to do, so getting into trouble is something that is not usually happening in the area.
The city enriches everyone, including the kids that are living in the area and provides them with a way to build character, trust, and confidence with a busy area that welcomes one and all.
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Location and Convenience
Toronto is a great city with plenty to offer the people that reside in it. The location and convenience that is offered with the choice of the rental or home you’re purchasing are going to make a huge difference.
Toronto is a city that is full of many different things. Not only is everything easily accessible, but it provides the resident with many options to choose from. Both renting and purchasing are feasible in the city.
While many of the homes for sale are actually condos, they still provide a great purchase to make. However, owners of the condos may also rent them out to those that are moving into the city and want to rent them.
Commuting anywhere throughout the city can easily be done when you choose to rent or buy in the city. Considering the available options is ideal since the right place that you choose, and location that it is in depends on your particular lifestyle and wants.
So, which should you choose?
Comparing Renting vs Buying in Toronto
When you’re renting, you’re paying into someone else’s equity into the building that they own. This means you don’t get anything back from the rental that you have.
- Rent – $2,300
- Utilities – $100
- Renter’s Insurance – $50
- TOTAL – $2,450
- Mortgage Loan – $2,440
- Fees and Maintenance – $300
- Utilities – $200
- Taxes – $300
- Insurance – $50
- TOTAL – $3,290
While the cost of ownership is higher, it is a piece of property that you are purchasing and putting your money into. Think of it as a savings account that is holding the money, you’re paying into it. This is because the more you pay off from the property, the more money you get back from it. When renting, you don’t get anything back from the money you put in. You’re creating a savings account for the owner of the rental.
The rental and buying market changes and percentages throughout the years are going to make a difference. If you buy a home and the housing market continues to go up, this is good news. If you’re renting and the amounts continue to move up, this is not always good. This means your area may weed out those that cannot afford it, but it also means your rent is going to increase along with the market prices.
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The Housing Market is Coming Back from a Low
With a blow that the housing market took in the years past, Toronto continues to grow and prosper, even with the changes that took it down, to begin with. The Toronto condo report shows the trends that have shaped and changed the way that the housing market has been increased or decreased throughout the years.
New construction is disappearing in the area, which may be one of the reasons why the market was on a downward spiral. It has since turned up and many more people are choosing to purchase condos within the area, or even rent them, instead of having to search for properties, as many of them were not available or were too high for people to afford.
With the Toronto real estate forecast expecting the prices of the condos and housing projects to increase, many of the buyers are sitting on their hands and are waiting for the housing market to crash. Many believe that this is the best time to purchase properties. However, this is not always true and the housing market throughout Toronto is not expected to crash at any time soon. This means that there are a lot of investors that are going to be waiting around while the area continues to grow and prosper, offering many choices and availability for those that are looking to purchase a property to live in, rather than one to revamp for cheap and flip to rent out to those coming to the Toronto area.
When the area continues to expand and new economies and residencies are introduced to the area, the area is only going to develop further and build with each and every new addition that is brought to the area. Those that are searching for a new opportunity can find it within the growing city that welcomes many.
This might mean it is the best time to purchase property in downtown Toronto if it is something you want to think about or a place you’d like to live.
Whether you rent or own is up to you and your specific choice. Of course, considering the pros and cons of both points of view, buying might be something worth considering if you want a better return on your investment, and more affordable price overall, maintenance, extras, and other fees included. The Toronto rental market is going to be going down any time soon, and the cost of renting may just end up increasing with time.
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Are you ready to get the right mortgage to cover the costs of purchasing a home in the Toronto area? Finding the best mortgage rate is ideal, as well as the best home to purchase. From there, you can live comfortably in this beautiful, bustling city. The number of condos and homes being sold throughout Toronto continues to rise, with over 11% of them being sold on a yearly basis, and more expected to be sold throughout the years since 2018.
Related article: The Ultimate Buyer’s Guide for Buying a House in Toronto
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