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Toronto’s real estate market is hot. Despite the slow down that it experienced last year, the market is still humming along nicely. Although the gains are not as high as those seen in previous years, they continue in the high single digits. So, investing in the housing market remains a wise decision. Naturally, there are some areas of the city that area nearing their peak value level. Therefore, if your are planning on maximizing your return on investment you should look to up-and-coming communities.

Toronto’s east end is the area to watch in 2019. With much of the west already gentrified, many investors and homeowners are looking to the east for good deals, and with good reason. With Leslieville already established as a hot neighborhood, the next shoot to watch is Gerard Street East. Many new store fronts and restaurants have opened lately and it is seeing a major transition from what it was before. Some are comparing it to what Leslieville was a decade ago. Two other neighbourhoods to watch are East Harbour and the East Danforth. East Harbour is looking up due to the expected new transit stop at Gerrard and Carlaw. There is a new development planned for East Danforth that is expected to ease the strong demand this area is currently experiencing.

If you are not interested in the east, you can always look to Oshawa, Clarrington, Innisfil, Brock and New Tecumseh. All of these areas are now easier to get to given the extension of new highways and the building of new transit options. They offer plenty of value as homes are still relatively lower priced compared to other areas of the city and are much more affordable.

Investors and homebuyers should take heart that Toronto is set to continue its real estate growth in 2019. As a magnet for new immigrants to Canada and with that putting pressure on housing, the potential for the GTA housing market is still significant.

If you have been thinking of getting into the Toronto housing market you will have noticed that what you can get for your money varies tremendously from neighbourhood -to-neighbourhood. First-time buyers are always at a disadvantages when it comes to getting their feet wet in real estate when the market is high because being able to afford something that suits their needs can be tricky. There are a few tried and true tricks to getting into an overvalued market that you should definitely keep in mind if you are gearing up for your first foray into real estate.

Having a good down payment is essential to finding a property that you can afford. If you are not quite there yet with your finances, consulting a financial planner to help you meet your down payment goals is key to success. If you are currently renting a place, a good rule of thumb would be to put away whatever extra per month you would have to pay for a mortgage, insurance and taxes. That extra portion will not only show you whether you can feasibly afford to buy a home and maintain it, but it will also give you that extra push towards reaching your savings goal.

The best first step into a heated real estate market in Toronto is to purchase a condo. Condos will have a decent resale value as there will always be someone wanting to either get into the game or to downsize. If the condos in your preferred areas are still out of your price range, then consider buying a new build place off-plan. Once it is built it will appreciate significantly enough to make your deposit worth it. Once the first tenants move in, the appreciation rate drops-off but by the time you are ready to sell to move up the ladder, you will have earned back everything you put into your condo.

If you are not willing to go the condo route to get into the market, then choosing a neighbourhood you can afford is the other best method of breaking into real estate. You will have to trade-in proximity to the city and perhaps endure a longer commute in to work every day, but once you have a foothold in the market, it is always easier to move up.

Investing in real estate in Toronto remains a good investment despite the market starting to slow down. Regardless of current market conditions real estate is always a solid investment because property will appreciate over a 10-year cycle. However, that said – real estate is definitely not for the faint of heart as there are many costs associated with housing that can make a huge dent in a budget if you are not properly prepared for it.

If you are looking to buy your principal place of residence a slow market is actually beneficial to you as pricing levels off and you are better able to get what you want at a price that is within your budget. Buying and holding on long-term will nearly always result in a positive investment. Where you run into potential risks is when you buy as a quick investment.

Many people buy believing that they can renovate the property and sell it again for a profit. Such an investment does require a fair bit of knowledge about the home renovations, relationships with contractors who are ready and willing to work on your project quickly and it also requires the funds to float the property and the renovations while also supporting the carrying costs of the home including the mortgage, taxes and utilities. In fact, this is where many novice real estate investors lose their footing. They miscalculate just how much it will cost to renovate and carry the property they have purchased. They also forget that there are tax implications in flipping homes in Canada.

If you sell a property within 2 years, the government will count the profit as business revenue and tax it as such and will also expect the HST to be added to it.

Those who are considering the purchase of investment property for rental purposes should make sure to structure their finances in such as way that they are able to support the mortgage and tax costs should they fail to find a suitable tenant for a month or more. Since real estate is not easily divested, it is important to consider all facets of the situations before jumping in. You must be prepared to ride the waves of the market and to understand that it might not always be smooth sailing. If you are ready for this, then you will certainly be able to walk away richer from a Toronto real estate purchase.

Welcome to 2019 Toronto real estate shoppers! We hope that you all enjoyed your holidays and are ready for whatever the new year brings.

Let’s kick off the new season by taking a look at what the real estate market might hold in store for Toronto buyers in the near to short term.

It is only naturally that Toronto home buyers might be a little cautious about the state of the real estate market right now. All indicators over the last year have pointed to a softening of the market and a slow down in the rise of prices. According to yorkregion.com, the York area saw a decrease in home sales of 23% in 2018 while the cbc.ca reports that home sales in the GTA were down overall by 16% last year. Furthermore the Globe and Mail reported that the slow down in the market would cost Toronto almost $100 million dollars in tax revenue.

So, while 2018 ended on a more sombre note when it comes to Toronto real estate, there are bright spots. The Toronto Star reports that Canadian realtors predict modest price gains in in re-sale home prices in 2019. Instead of the runaway double digit rise in prices we have grown accustomed to over the past decade or more, single digit growth is what we can expect. The basis for this prediction is simple – Toronto is still among the most attractive Canadian cities for new immigrants, and they all need housing. Since the rental market is so expensive, many people would rather put their money into their own place instead of renting.

So, whether you were looking to buy or sell in 2019, there is room for positivity in the market and when you are ready, Imaginahome will be ready to help you meet your goals!

Happy New Year!

Canadian winters can be harsh and Toronto winters are no exception. Sealing your home’s doors and winters for the cold season is one of the best ways to prevent energy costs from going through the roof. Even a small draft can greatly impact your heating bill over the course of a winter. There are many ways to seal your doors and windows and all of them are quite simple and can easily be done by yourself.
 
Weathersrtipping is one of the easiest and most cost effective ways of getting rid of drafts. You can purchase a weatherstripping kit from any home hardware store that will give you everything needed. There are even handy tutorials online that will guide a novice through the process of properly using the materials.
 
Getting new door sweeps is another very effective way of keeping out the cold. You can buy new sweeps and cut them down to the correct size easily. Something else you can add to your doors to keep the cold out is foam tape. It can be cut and applied to your doors wherever the doors are warped to seal them properly.
 
A great product for sealing your windows is interior window film. Similar to shrink wrap, window film looks like saran wrap, but shrinks to fit when heated with a blow dryer. It is an easy and economical way of keeping the cold air out and the warm air in.
 
Another easy trick for your windows is to hang insulated, thermal curtains. The thick and light-and-air-blocking curtains are highly effective at keeping out the cold and also at keeping out sunlight during the winter, which would heat up your home and increase your air conditioning costs. However, in order for them to work, the curtains have to be drawn. If you like to let in the light, then this might not be the best solution for you.

A super simple way of preventing cold air from coming in from under doors is to use a door snake. These nifty craft snakes are made of weighted fabric and absorb the chill. You can either make them yourself or simply roll up a towel and place it at the foot of your door or window.
 
Lastly, every fall you should get yourself a tube or two of exterior caulking and walk around your home resealing the doors and windows.
 
Keeping your home well sealed is not hard and requires minimal effort on your part, but will make a world of difference during the winter.