Buying real estate in Toronto is a great option if you want to make a profitable investment. It will save your money and increase them because real estate in this city is constantly growing in price. You can also provide additional income by renting out housing for short-term rent.
Toronto vacation rental market overview you can find here.
In this case, you will receive a stable income without the risk of losing your investment. With the help of online platforms (like Airbnb), you can place your ads and attract customers. You can rent out your property whenever it suits you. And if necessary, you can freeze the ad and live in the house or apartment.
So, you decide to buy real estate for rent in Toronto. How to start? What to pay attention to? Let’s talk about it.
Why is buying property in Toronto a good idea?
To invest profitably in rental property, you need to choose a popular place where many people come from all over Canada and abroad. Then you will always have a lot of customers, and the income will constantly grow.
Toronto is a great place to buy real estate. Here are some main reasons why a home or apartment here is a goldmine for the Airbnb business.
To invest in real estate, you don’t have to be an expert or experienced financing analyst. You need to analyze the short-term rental market and find your niche.
Many people visit Toronto daily: students, tourists, business travelers, and festival goers. Each of them is looking for a place to stay for a few days. Someone is looking for a big house with a parking lot and a swimming pool, while someone else will have enough cozy apartments with an equipped workplace.
If you constantly short-term rent your housing, you can make good money on it. Of course, you can rent your home or apartment for a long time, but the vacation rental business is much more profitable. In addition, you will be able to place your ads on major online platforms such as Airbnb
If you are not ready to take the time to run your Airbnb business on your own, you can contact a short-term property management company. They will take care of all the main tasks: communication with clients, updating ads, hiring specialists for cleaning and repairing housing, purchasing consumables, etc.
In any case, if you decide to suspend your rentals and freeze your Airbnb business, you can do so at any time. And if necessary, sell the property altogether and stay in profit.
Why is buying property in Toronto a great investment?
Now that we have talked about the general benefits of buying real estate in Toronto let’s talk about the business benefits of this investment.
Geographical proximity to the United States of America
The city is almost on the border between Canada and the United States. Moreover, Toronto is close to major industrial centers such as Washington, New York, Chicago, etc.
Toronto airports constantly receive flights from the USA and Europe, so the passenger traffic of business travelers and tourists remains very high. It is facilitated by the current free trade agreement, which opens up great prospects for entrepreneurs worldwide.
Canada’s largest city
It is here that many educational institutions, universities, and colleges are located, where students from all over the world come to study every day. This contributes to the rapid growth of the city’s economy, as well as the development of the rental housing sector. Not all students live on campuses: many prefer to rent housing, including on Airbnb.
It is also here that many business centers are located: small business is constantly developing here, and new business incubators and accelerators are opening. Startups created by Torontonians are successful both in Canada and abroad. Toronto’s technological development leads the global market, which causes a constant influx of experienced professionals to the city.
The city is constantly growing and developing
Due to favorable conditions for business development and low tax rates, the real estate market in Toronto is incredibly developed. So you can find a house or apartment that suits you in terms of cost, location, and basic parameters. For example, it can be a cozy studio in one of the business districts of the city or a separate house near Kew-Balmy Beach. It all depends on your business strategy.
If you’re looking to open a small Bed & Breakfast hotel near a green area, you might want to look into Cliffside real estate. And if your main audience is students or business travelers, you should buy an apartment in East York.
If, in small resort towns, property owners for short-term rentals have to take care that guests have somewhere to go, and offer additional services and entertainment, then in a large city, there is no problem with this: in every district of the town, there is a cafe with delicious local food, attractions, concert halls, exhibitions. In addition, even if your apartment is located far from a particular attraction, a developed transport system will allow you to get to it quickly.
Center for Innovation and Technological Development
Toronto is a city that occupies a leading position in the development of technology industries. Here, the offices of such giants of the information market as Google, Microsoft, Facebook, and others are located.
In this city, startups appear, and many of them have gained recognition both in Canada and the world market.
The government supports young entrepreneurs and encourages introducing the latest technologies in areas ranging from technological production to interior design.
A city attractive to tourists
The capital of the province of Ontario is not only a center of technological progress, education, and innovation but also a center of tourism. People from all over the world come here to admire Casa Loma, walk along Young Street, and visit the Royal Museum and Fort York. People come to this city on vacation with their family, friends, or soulmate. They stay in hotels, apartments, and hostels, taste dishes in local cafes and restaurants, and attend exhibitions and concerts.
Read also the best Airbnb cities in Ontario.
Intensive growth of industrial enterprises
Toronto’s economic growth is reflected in industry development: new industrial facilities are constantly being opened here, and new jobs are appearing.
For this reason, the demand for real estate in different areas of the city retains its value and is constantly growing. So your investment will pay off even if you just sell the property after a few years. And if you run your Airbnb business, you will receive a regular, constantly growing income.
A large number of educational institutions
There are more than 30 higher educational institutions in the capital of Ontario: colleges, commercial and non-profit universities, etc. People come here to study from all over Canada, neighboring countries (USA, Mexico, El Salvador), and even Europe. That is why a modern multicultural community continues to form here, where everyone can feel comfortable and safe.
Which are the best areas to buy property in Toronto?
So you’ve decided to buy property in Toronto. Which areas of the city are the best places to start an Airbnb business? Here are some of the best solutions.
This area is considered the most fashionable and bohemian. It is located in the heart of Toronto and King West, where prestigious restaurants, shops, shopping centers, and concert venues are located. People come here for shopping, creative meetings, and relaxation with friends. Life is constantly in full swing here, and the demand for real estate here is exceptionally high. And this is a natural urban miracle because even 20-30 years ago, there were mainly warehouses and non-residential premises here.
Leslieville And The Beaches
Unlike urbanized King West, Leslieville is famous for its cozy cottages and Victorian houses. The area is located near Lake Ontario, and the rhythm of life here is quite measured. People come here to relax near the coast and visit art galleries and small cozy coffee houses. So if you are dreaming of a mini-hotel with a homely atmosphere, consider buying a house in Leslieville.
The area is famous for its upscale boutiques, luxury hotels, and huge offices. It is one of the most elite areas of Toronto, and real estate here is quite expensive. However, short-term rentals are expensive, so you can recoup your investment fairly quickly.
The area continues to develop rapidly: new shops are opening, and highways and transport interchanges are being built. Once completed, Yorkville has every chance of becoming the most expensive and prestigious place to run a rental business.
It’s an excellent choice for those who are looking for non-standard solutions. Liberty Village is a very unusual area adjacent to King St. West and has a developed transport infrastructure. It is here that most of the design and art studios are assembled. Liberty Village attracts many creative people who appreciate unusual places, freedom of expression, and original, authentic hotels. Buying a property here will be an excellent solution if you are looking for a creative approach to business.
Yonge and Eglinton
Condos have become popular not so long ago, but today such investments occupy a leading position in the market. It is especially noticeable in the areas of Yonge and Eglinton. These quiet areas are perfect for young families and those who dislike living in too noisy places. It has all the necessary infrastructure – a school, playgrounds, a park, shops, and coffee houses. In addition, the central regions can be quickly reached by transport.
Just a 10-minute walk is the famous Sherwood Park – a stunningly beautiful place for walking and relaxing.
The Eglinton-Crosstown Light Rail (ECLRT) is scheduled to open in 2031, making a living in these areas even more attractive.
This famous street on the Harbourfront has become one of the symbols of Toronto today. If in the past there were mainly industrial premises on it, now there is luxury real estate near the coast.
It is a great place to live as well as for a short summer vacation. People come to the beach from different parts of Canada and the USA.
The value of the real estate on Queens Quay is constantly growing, so this investment will be very profitable.
It is an atmospheric, charming, and cozy area with many cafes, restaurants, and Italian-style buildings. In the 80s, more than 30 thousand Italians lived here, but their number has dramatically decreased in recent years. But this does not prevent the area from retaining the stunning atmosphere of Old Italy. That is why it is here that many tourists who come on vacation to Toronto stop.
Toronto is Canada’s largest city and economic, cultural, and tourist center. The offices of the world’s largest companies (Microsoft, Facebook, IBM, etc.), many enterprises, and shopping centers are here. There are also natural attractions here: the embankment of Lake Ontario and numerous parks and reserves. Apartments and houses for sale are constantly appearing here, so you can get the property that suits you the most.
Many tourists, students, and business travelers come to this city. Therefore, the short-term rental market is highly developed here.
By investing in real estate in Toronto and starting your Airbnb business, you will receive a stable high income. You will also be able to manage your business flexibly. As an Airbnb host, you’ll be able to manage your business and host on your own schedule. You can do it yourself or contact the services of a management company.