| Investing

So you’re ready to leave behind your first condo and begin looking for a larger home. Buying your first home is an amazing accomplishment, but it also comes with new financial responsibilities. Depending on your unique circumstances, keeping your current condo as an investment property can be a great way to maintain financial security as you enter the next chapter of your life. 

Understanding which option is best for you is no small task, but I’m here to help. Here are 4 signs that keeping your condo as an investment is the right move. 

Not sure if you’re ready to make the jump to homeownership? Check out 5 Signs it’s Time to Upsize here. 

The Timing is Right (or Wrong)

Over the past two years, the COVID-19 pandemic has impacted Toronto’s condo market drastically. As many of the city’s downtown residents began to leave the core in favour of less-crowded and larger living spaces. As a result, condo prices in Toronto plummeted and many properties sold far below the typical market value. While the condo market is regaining strength and prices are rising, selling now could mean a lower return on your original investment. If you don’t need immediate equity, hanging on to your condo, for the time being, will likely mean selling it for a higher price down the line. Luckily, the city’s condo market is trending to be just as hot as it was before the COVID-19 pandemic. 

Passive Income

Without a doubt, one of the best perks of being a landlord is passive income. Finding a financially secure long-term tenant means a consistent source of income for you every single month. After you’ve upgraded to a home, income from your condo can also be a great way to cover new expenses. 

Your time is also valuable, however, while being a landlord comes with its share of responsibilities, it can be a hands-off role that doesn’t require much labour input or time. 


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You’re Nearby

While your tenants can make your condo feel like their home, it is ultimately your property. If you’re the type to have concerns about how your condo will be treated by your tenants, then sticking nearby can help ease your anxiety. Close proximity to your condo allows you to save time when supporting your tenants’ needs or managing maintenance. If you’re still nervous, an experienced agent with investment condo expertise can help you find a great tenant. 

Living near your condo also gives you the opportunity to forgo hiring a property manager in favour of overseeing it yourself. This will cut down on your overhead costs and make your returns significantly better.

Rent Averages are Stable or Increasing

Toronto is continuing to grow in population, and the demand for housing is expected to climb alongside it. This means that demand is likely to exceed supply down the line, keeping average rental costs high. Ontario has recently relaxed rent control in some areas, allowing landlords to charge more for their units.  

Similar to average home prices, what you’ll be able to charge tenants is more likely to increase than decrease down the line. This will not only make budgeting and planning for the future easier, but you may also see your returns accelerate beyond your expectations as rent prices in Toronto continue to rise. 

While selling your first condo and moving into your new home may seem like the most simple route, keeping the property as an investment can set you up for long-term success. A great agent can help answer any questions you have about investment properties, the Toronto market or how to make your condo tenant-ready. 

Have questions about what’s happening in the Toronto real estate market? Call or text to learn more: 416-500-5360 / Email: info@rashidnotash.com