Is Investing In Toronto Real Estate Worth It

Investing in Toronto Real Estate And Condos

When it comes to investing in Toronto real estate, you’re either for it or against it. There are the skeptics that like to hang onto the headlines that prophesy that Toronto’s real estate bubble is sure to burst – and we might be heading towards a large correction. On the other side you have the real estate investors and everyday Toronto homeowners that have made unbelievable equity gains simply from choosing to buy property when they did.

Toronto is an evolving world-class city, joining the likes of NYC, San Francisco, and London. It may seem too good to be true but the Toronto real estate market is destined to keep its momentum. So if you’ve been asking yourself, is investing in Toronto real estate worth it? or, When to invest in real estate? The answers are yes and as soon as you can afford to.

We’re here to tell you why you should invest in Toronto condos and how to invest in real estate in Ontario.



The Equity Gains Are Real When Buying an Investment Property in Toronto

If you’re asking yourself, “Is real estate profitable in Toronto?” you’re in the right place. Investing in Toronto real estate, when done wisely, can be very fruitful. Since 2017, condo prices in the 416 (Toronto Proper) have risen 32% or 6% a year. To put that in perspective, if you had purchased a condo in 2017 for $550,000, you would have made over $180,000 (or $36,000 per year) just by living there. These high equity gains when investing in Toronto real estate is one of the reasons why Toronto is one of the best places in Canada to invest in real estate.

And that’s just the Toronto average price. When you have a proper condo investment strategy, you can make better returns, faster. Some of my real estate investors have already earned between 9% and 24% on their 2020 investments. Have a look at some of my client returns here.

Stable & Increasing Demand for Rental Inventory

Investing in Toronto real estate is still very profitable and with Toronto’s growing population, the demand for rentals remains stable. Covid may have had its time and lowered rental demand but that was temporary and we’re already on the up-and-up. In fact, with the recent market correction rents are actually up 25% over 2021. With college students returning to school and immigration expected to reach record-breaking levels, we anticipate stable but increasing demand for rental inventory.

Both immigration and educational opportunities are bringing a surplus of qualified residents to the city.

In 2019, the Huffington Post published that Toronto is the fastest growing city in the U.S and Canada with an increase of 77,435 new residents between July 2017 and July 2018. In 2021 Canada aimed to welcome 401,000 new immigrants, has already landed over 70,000 in the first quarter alone and plans to tie record immigration levels set in 1913.

With major developments like East Harbour and our growing tech industry, and several high-profile tech companies choosing to set up shop in Toronto (Google, Sentry, Uber, Pinterest, and Microsoft to name a few), the demand for available rentals will continue to climb.

Pair that with Toronto’s record high rental rates — condos currently rent on average about $2,463 per month — and it’s easy to see how your tenant can help pay down your mortgage.

It’s also worth noting that the Ford government has lifted rent control on new units, including pre-construction condos, which are being leased for the first time. You can read more about the rent control amendment here.

Canada’s Stringent Lending Practices Keep You Protected

Buying investment property in Canada is a safe long-term investment because of the many guidelines they’ve introduced, including the Stress Test at the beginning of 2018 which was actually raised to a higher Stress Test threshold in June of 2021. We’re also VERY WELL FUNDED. Believe it or not, Canada has an extremely low delinquency rate. As of 2021 it was 0.25% — the lowest level reported in 5 years. Canadians may be mortgaged to the hilt, but Canada’s loan default rate remains tiny. Canadians will do anything to ensure they don’t miss those payments.

 Best Place To Buy Investment Property In Canada


Are rental properties worth it? When it comes to investing your hard-earned money, is investing in Toronto real estate better than investing in the stock market? The short answer is yes — if you can afford it.

The real estate market in Toronto has proven time and time again to produce far more steady growth and be more stable than the stock market. Ask yourself, how much have your traditional investments made you over the past decade compared to your home? When you buy an investment property in Toronto you are investing in real estate — a tangible asset, not the shares of a company that could take a nose dive due to a bad PR crisis. It’s also a long-term investment; so even if the market takes a minor drop, it will continue to climb over the long term.

The Power of Leverage And Making Your Money Work For You

When you get into the numbers of it all, investing in Toronto real estate has the potential to earn you ten times the amount of traditional stocks and bonds because when you invest in real estate, you’re leveraging your money into a much larger asset. Real estate vs stocks is often a big debate among investors.

For instance, if you buy $30,000 in stocks and the market goes up 10%, you’ve made $3,000.

However, if you put $30,000 down on a property that’s worth $300,000 and the market goes up 10%, you’ve made $30,000.

Investing in real estate is a low-risk, high-return investment. Since your gains are made on the full value of the asset, your dollar goes much further. 

For a more comprehensive breakdown read Pierre’s Take on Stock VS Real Estate


When it comes to investing in Toronto real estate, the condo market is where the biggest gains are. Toronto condo prices have gone up an average of 32% since 2017. And when you pay attention to the local data, you’ll quickly realize that different areas perform better than others. A Toronto condo investment in 2022 means you’ll get in at yesterday’s rates, something that was once unbelievable.

Toronto’s international profile is joining the likes of major cities like New York City and San Francisco but with property values still far below their markets. While we may think our condo prices or Toronto real estate listings are high, they’ve still got a long way to climb before they reach the prices of these other major cities.

We like to say that the best time to buy real estate is yesterday because the longer you wait, the less your money is actually worth. This is all a result of the Toronto condo market’s success.

Let’s say both you and a friend had $100,000 to invest. You decide to invest in a $500,000 condo while your friend decided to wait a year in hopes of a market drop. Instead, the market goes up 10%, earning you $50,000 while your friend’s $100,000 is now only worth $90,000. All of which is to say, prices in the next year will either be higher than today, or interest rates will be higher than they are today. Homes will never be more affordable than they are today. Investing in a Toronto condo this year means your money can start working for you today.


We love projects near existing transit stations or future transit stations. Property values tend to favour them as both owners and renters alike do. Toronto has a lot of new transit plans on the horizon, if you’re investing be sure to check out these neighbourhoods. 


If you are asking yourself, “So, Toronto condos are a good investment but are pre-construction condos a good investment too?” The answer we have may actually surprise you. It really depends on what you’re buying, where you are buying and most importantly, what price are you paying?

Not all pre-construction projects are equal. Just because you buy something on a “Platinum Launch” doesn’t mean it’s the best deal — or even a good deal at that. When you are buying to invest, whether you’re trying to invest in real estate with little money or a large down payment, there is one thing that matters above all else, your return on investment.

We wrote an entire article on the topic of re-sale condos vs. pre-construction condos. Depending on your financial situation and goals you might find one more attractive than the other.


With the cost of Toronto houses in 2022, it’s hard to invest in a house as a rental property (not impossible, just cash intensive). If you’re thinking about buying a house in Toronto and whether its a good investment long-term as you live there, it absolutely is.


Work with an Agent Who’s also an Investor

Investing in Canada real estate is best done with a real estate broker who is also an investor. Pierre became a real estate agent because of the amount of money he had made from his first condo. Recognizing the value in real estate, he taught himself everything he knows about the Toronto market so that he could duplicate the same success for his own clients.

See some of Pierre’s client returns here. 

Investment Property Toronto: Finding the Best Condo Deals

When buying a condo in Toronto as an investment, it’s important to buy strategically. Don’t be misguided by condo developments that seem juicy because they’re along the waterfront. You’re looking for condos with the best margins and they can be found both in the resale condo market as well as the pre-construction market.

Read: Pre-Construction VS Resale Toronto Condos 

Read: The Best Pre-Construction Condos Launching This Year

Spotting the best condo deal in Toronto can be approached in several different ways:

  • Look for condos that are priced below what other properties in the area are trading for.
  • Look to gentrifying neighbourhoods where prices are low but are on the rise.
  • Look for future developments or transit infrastructure that will add value in the years to come.
  • Look to resale condos that are known to perform well in the market.

These are just some of the ways you can find a good condo investment. The real value is with the real estate agent you work with. When it comes to the resale market, having an agent who knows which buildings and floor plans yield the better ROI can prove to be immensely valuable.

With regards to pre-construction, you need an agent who has Platinum Access to projects throughout the city. This gives you preferential access to the best floor plans and the lowest pricing available. When Toronto buildings launch sales the best inventory is always snatched up during the Platinum phases by seasoned real estate agents and their clients. The best inventory typically never hits the open market.

Read: The Best Pre-Construction Condos Launching in 2021

Use the Power of Leverage When Investing In Real Estate

Real estate is one of the few purchases that you can make without having to pay the full purchase price. Typically, purchasing a property requires 20% down, meaning when you have $100,000 to spend you can purchase a property worth $500,000. The equity growth is based on the full value of the asset.

One of the reasons why so many people are able to build wealth through real estate is the magical power of leverage. When you own a home, you’re able to borrow up to 80% of your home’s equity for a low-interest rate, known as a Home Equity Line of Credit or HELOC.

If you can leverage a portion of your home equity into a second condo investment, you’ll begin to build your portfolio, now providing you with two properties generating equity in the market.

Learn the specifics of using the equity in your home to invest in real estate.


Are you wondering what to do before investing in a pre-construction condo, or really investing in any real estate, period? You need to get a good investment strategy together first. You need to speak to the right professionals, a real estate agent, a mortgage agent and your accountant.

Investing in Toronto real estate isn’t a one size fits all strategy. Having an experienced realtor who understands the investment process is a great way to ensure you’re making smart investment decisions. They’ll be able to give you guidance on how to maximize your return and equity beyond the expected market growth.

Their advice and guidance in building your portfolio will depend on what you have at your disposal and will largely depend on trends in the market. They should actively be looking for margins and opportunities in the market that match your individual needs and ability. It’s not about buying one thing, it’s about buying the right thing.

The New Real Estate Investor

When starting out, you should build your investment portfolio at a pace that is conducive to your own means. Not everyone will be able to purchase one or more $500,000 properties right off the bat, however, the goal remains the same: setting up a channel that will help you build equity and amass wealth.

Even if buying a modest studio condo for $350,000 is what your budget will allow, it’s a great way to get your money to start working for you and will set you on the path to being able to afford larger investments in the future.

The Home Owner

If you already own a property and are wondering whether to sell or leverage your equity, you need to determine if reinvesting the money from the sale will make more money than if you held the asset?

Just remember that investing in Toronto real estate is a long-term investment plan. With strong equity gains and a tenant paying down your mortgage, it won’t be long before your investment is generating equity.

Related: Your Real Estate Investment Toronto Strategy Dos and Don’ts


Advice pertaining to purchasing the best pre-construction condo to buy in Toronto is relative, as our answer will always vary based on your goals, budget, and unique situation. Therefore we’ve written a detailed article covering the different types of pre-construction condos you might want to purchase.

Related: Best Pre-Construction Condos in Toronto Launching This Year

However, if you’re looking for the best INVESTMENT of the year, we should talk. Book a call with us to get started on creating an investment plan that works for you. Building wealth through real estate is what we do.


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