Pre-Construction vs Resale Buying Guide

If you're reading this article, let us start off by congratulating you. You've saved enough money to make a purchase in the highly competitive Toronto housing market, a milestone not everyone achieves. In Toronto, there's two options when it comes to real estate purchases; resale condos or pre-construction builds. Not sure what those are? Not to worry, we'll break it down below and explain the unique differences between the two.

Pre Construction vs Resale Buying Guide

Buying a resale condo is most likely what you thought buying a house would be like as a kid; it's an existing, furbished house that you walk into and go "I'll take it!" The current owners likely live in the home and you're buying the condo directly from them, hence, a "resale" of the home.

In contrast, pre construction real estate are condos that don't necessarily exist yet. In reality, it's a development project that has been proposed in which X numbers of condos will be built by Y date. As a buyer, you're buying a condo in the building before construction has even begun. Typically, units are sold purely through floor plans and digital renderings. Likewise, as the condos are brand new, you'd be buying the condo from the builder, not another homeowner.

Deciding between a resale condo and pre-construction condo can be difficult, because there really is no right answer. The right condo for you depends on your budget and goals. However, there are distinct pros and cons associated with both that can help you with your final decision. For more information on the benefits of resale vs pre-construction homes, contact our real estate team at and learn more.

Advantages of Buying Resale Condos

No Surprises

When you buy resale, you're committing to a home that you can actually walk into and see. You can tour the condo, get a good feel for the vibe and envision your belongings in its layout before you make the purchase. This is why resale is always the safest option. There are just certain things you can't judge about a condo off of floor plans and 3D renderings.

Not only is the condo already built, but the entire building will be up and running; You can tour the amenities and even check out who your future neighbours are via the Status Certificate. With a resale condo, you can truly have peace of mind with what you're buying as everything is already established.

Better Timelines

When you buy a resale condo, the move-in timeline is set in stone based on your closing date. Very few things will affect it, making your financial and life planning a lot smoother.

Better Value

Buying resale condos can often net you better bang for your buck. Resale real estate are priced according to today's market value, while pre-construction units are priced based on projected values 2-3 years down the road. So while resale condos in Toronto may seem pricier at first, they can actually be the better deal in the long run.

Disadvantages of Buying Resale

Fixed Features

The downside of buying resale is that the finishes on the condo may not be to your taste. Previous homeowners may have chosen countertops that you absolutely hate, or changed the condo layout in a way that's awkward for your needs. While most can live with superficial drawbacks for a short period of time, a forever-home might require renovations. This additional cost to buying resale would need to be budgeted for ahead of your condo purchase.

Limited Options

While resale condos are plentiful across the Toronto real estate market, a unit in the exact building you're looking for might be few and far between. Typically, only a handful of resale condos are available for purchase from a specific neighbourhood/building, making it difficult to buy the condo of your dreams.

Bidding Wars

With limited supply of resale condos, demand goes up. You should be prepared to face some stiff competition when looking to buy a resale condo, especially if you're buying a condo in an amazing building located in the heart of Toronto.

Benefits of Pre-Construction Condos


Besides being brand new, purchasing a new build condo gives you the opportunity to build your dream home. With a pre-construction condo purchase, you get to choose all the finishing touches, from the cabinet handles to the door frame. Likewise, you'll be able to pick the exact floor and layout of the condo, a benefit not offered to those buying in the resale market.

Locked Pricing

New homeowners often prefer to purchase pre-construction because it's cheaper than a resale model, even when the condo price reflects the value 2-3 years down the road. This notion comes from the fact that the price is locked in, with a deposit structure that's stretched out over the course of many months. Not only does this mean no bidding wars, it also means that buyers don't have to have the entire deposit amount right away. This allows new homeowners to buy the condo with less money in the bank, with some buyers receiving up to a year to pay the deposit! This fact alone makes pre-construction real estate much more attractive than resale condos in the eyes of many buyers looking to enter the Toronto real estate market.

Home Warranty

After you buy a pre-construction condo, you'll be required to purchase Tarion warranty. This warranty ensures that you're reimbursed should anything break or not work properly once you move into the condo.

Downsides of Pre-Construction Real Estate

Long Timeline

Unlike a resale condo purchase, a pre-construction condo's move-in timeline is not set in stone. Typically, you buy pre-construction condos for their equity gains rather than a quick flip like those who purchase resale, which means you're in it for the long haul. With that mindset, you should be prepared to wait years before your pre-construction condo is actually completed. To make matters worse, a presale must occur and a certain percentage of the condos in the building must be sold before construction even starts. Even when that's done and a completion date is provided, the build will most likely be delayed. Legally, builders can go 18 months past the promised completion date before they give your deposit back.

Interim Fees

There's a period of time when your specific condo unit will be finished while other parts of the condo are not. Regardless, you will be required to pay an Interim Occupancy Fee at this point, as you are legally allowed to move into the building. While this fee will be similar to the cost of your future condo mortgage, it will not go towards it. Instead, it will go to the builder until the condo's official closing date.

Exclusive Availability

Like everything else in life, it pays to have insider relationships. While pre-construction buildings offer plenty of units to choose from compared to resale, the best ones are often sold by the time the building is open to the average buyer. This is because top agents with relationships with developers give their clients the first pick, leaving the leftovers for the public.

As you can see, there are arguments both for and against resale and pre-construction condos, with neither being the obvious "better" purchase. To make the right purchase choice, it's up to you to weigh your constraints against your goals. Whatever you choose, at least you'll know the pros and cons you're signing up for now!


How to Choose the Best Pre-Construction

Pre-contruction condos have become a hot ticket item within the Toronto real estate market, with young buyers and experienced investors all flocking to snap up the newest units on offer. However, it's a daunting task to buy real estate off just a floor plan and some 3D renderings. So how do all these potential buyers pick the best pre-construction condo to purchase? Unfortunately, there isn't a simple answer to that question, but we can offer a set of guidelines that help you pick the right pre-construction condo for your unique needs.

#1 Consideration When Buying Pre-Construction Condo Unit

The single most important thing to knowing how to choose the best pre-construction condo for yourself is to understand your end goal. Typically, there are two main outcomes when you buy pre-construction condos; The first option is that you or a direct family member ends up living in the new condo. This means that you, the buyer, are the end user. The second option is that the pre-construction unit is purchased, then rented out. This would make you an investor and would apply even if you plan on selling the condo via an assignment sale later on.

Both are great reasons to purchase a pre-construction build, but the two approaches will significantly impact what factors you look at when selecting your condo.

How To Choose The Best Pre-Construction Condos

There are three main factors to consider when selecting the best pre-construction home to buy and we'll break down each of them below in the perspective of the an end-user and an investor. The main difference between the two lies in what needs to be prioritized in the condo purchase process. As an end user, personal needs and desires are the most important when it comes to choosing the right pre-construction condo. In contrast, an investor should prioritize factors that are likely to increase their rental cash flow.


End User

Since you will be the one residing in the new condo, you'll want to thoroughly research the neighbourhood around the building. Luckily, Toronto and areas in the GTA are always growing, so there are almost always new pre-construction projects underway. This means that you aren't limited by the locations of pre-construction condos, as there are plenty to choose from across the city. With this in mind, you should look into what community you'd like to purchase real estate in and focus your efforts there. Those with families may prefer to purchase condos closer to schools, while those who live for the party scene can consider something closer to the heart of Downtown Toronto. Be honest with what you're looking for in your day to day life so you can pick the right pre-construction unit for your lifestyle.


In contrast, an investor should pick a pre-construction build's neighbourhood based solely on its rental demand. Avoiding vacancy and turnovers is key to generating income on a rental unit, so buying real estate in a popular location where tenants want to live is an easy way to set yourself up for success. We recommend working with your Broker to uncover top areas where a new rental condo could thrive and avoiding places in Toronto that are already saturated with rental suites.


End User

Even if you're buying pre-construction condos, you're investing a good chunk of your life's earnings in one go. With such a big commitment, it's important that you're picking a pre-con unit that's built by a reputable developer. While delays are a commonplace with pre-con builds, quality of development is what an end user should focus on. Speak with your real estate agent to see if they can provide background information on your builder's latest developments and to notify you of any complaints from past buyers. It's best to do the upfront work than to move into your new condo to discover that things are poorly constructed.


On the flip side, as an investor, you should be most concerned with your builders' timelines. If your new condo is developed by builders who are notorious for project delays, it'll be a while until you start to see any income generation from your real estate investment. Be sure to work with your Broker to get the scoop on the builder's past projects and timelines, as any delays will cost you.


End User

As the tenant of the unit, you should select a pre-con condo suite that suits your current and future needs. A 1-bedroom may be cheaper, but upgrading to a 2 bed+2 bath might be needed if you plan on expanding your family. Likewise, a studio may cut it for now, but a den might be nice if you change to a fully remote job. Homes are reflective of our day to day lives and your condo's layout will need to fit with what you need, so make sure you have your pre-construction condo's floor plan in mind before you sign the check.


As the pre-construction condo purchase will be an investment property that's rented out, the floor plan will dictate the type of tenant you attract. This in turn, can impact the amount of profit the condo generates. Historically, investors have focused on smaller homes, bringing in bachelors and couples into studios or 1-bedrooms. However, larger condos can attract families who stay for years, making turnover and vacancies less of a problem. As an investor, it's crucial to think through what floor plan would make the most sense for your specific financial goal.


End User

Working with your broker, you should strive to find a pre-con with the most advantageous deposit structure for your finances. Deposit incentives are often used to attract buyers, so there's no harm in shopping around if your ideal structure isn't met. 15% is the standard rate, but it can really be anything between 10%-20%.


A pre-con's deposit structure is sure to impact your cash flow as an investor, so it's important to plan accordingly. Even if your budget works with the condo's deposit structure, it's crucial to pay attention to the terms of the purchase. Make note of any hidden clauses, fees or tricky wording that may end up throwing your balance sheet out of order.

Bottom Line to Making the Right Pre-Construction Condo Purchase

While there's really no good answer as to how one picks the perfect pre-construction condo unit, there are at least some guardrails to help you along the way. Keep those three factors in mind as you shop around and you're sure to find success in the Toronto market. Best of luck!

Is Hiring A Property Management Company Worth It?

Whether you own one investment property of a slew of them, rental properties tend to come with a host of headache-inducing work that plagues owners. Add on the need to place tenants to avoid vacancy, rental properties never turn out to be a true source of passive income like dividend-paying stocks. So what can be done to alleviate some of the landlord's work? Well, you might want to consider hiring a property management company.

What Is Property Management and What does a Property Manager do?

Residential property management companies specialize in helping real estate owners deal with everything from rental maintenance to tenant screening. Basically, a property manager will oversee your rental property's ability to generate cash flow while dealing with all your tenants' needs. Hiring a property manager can mean as much or as little involvement from you as you'd like. Below are some examples of the duties of a property manager, should you choose to hire one for your personal real estate management needs. Head over to for more information on how our team can help manage your property!


Leasing out vacant real estate is the #1 hassle of being a landlord, and taking care of that task is one of the best values a property manager can provide. A property manager will do everything from advertising the unit and screening tenants, to cleaning a unit after a tenant moves out. This service provides landlords the ability to ensure their rental properties are filled without ever lifting a finger.


Property managers not only help fill rental properties, they also serve as the first line of communication with tenants; whether that's collecting monthly rental income, or addressing maintenance issues in the middle of the night, your property manager will be the one to pick up the call.


While a property management's fee won't cover maintenance and repairs, a property manager will oversee the resolution of any issues your tenants are having. They'll speak with the tenant and reach out to vendors to provide quotes to landlords, helping to coordinate a repair every step of the way.


An essential part of securing a great value for your rental property is ensuring that it's kept in tiptop shape. However, it's hard to ensure that if you can't always go and check in your tenant. That's where a property manager can really help. Property managers will go in a landlord's place to inspect the unit, usually going around twice per year. This way, the property owner can rest assured that their tenant is abiding by the lease and maintaining the place to the standard outlined in the contract.


Legal processes, like evictions, are one of the most tedious tasks a landlord can have and we wouldn't wish it on anyone. However, if you do find yourself embroiled in an ongoing law case, property managers can make your life a whole lot easier. A property manager will not only serve the warning notice, but they'll also submit all the necessary information to the judge. Once the case is resolved, they'll show up to at the unit to change the locks and ensure a true clean out of the property.


Property managers keep a close eye on all documents related to your properties, so they're a huge asset when it comes time to submit tax documents. They'll provide meticulous accounting records for all the real estate they oversee, allowing regular landlords the ability to tackle tax season without the usual stress.

Are Your Rental Properties Worth Hiring a Property Manager For?

Property managers charge a significant amount of money for their services; around 8-12% of the monthly rental value of the property for general upkeep and an additional amount to place a new tenant after turnovers. With rental properties being a channel to build wealth, you don't necessarily want to waste profits on property manger fees.

So before you jump the gun, here are some things to consider to see if hiring a property manager is the right move for you.

1. What type of properties do you own and what kinds of tenants will it attract?

If your rental property is relatively new and in great shape, you probably don't have to worry too much about maintenance and repairs. However, if you invested in fixer-upper real estate, you could consider hiring a property manager to tackle all the impending issues. Likewise, real estate in a yuppie neighbourhood will most likely mean more hands-off tenants than rental property in a college town.

2. How far away do you live?

Being a landlord is much easier when you're close to your rental property and tenants. How far is too far? Just imagine making the drive over in the middle of a weeknight and you'll know if you want to hire a property manager.

3. How much free time do you have?

Even if you're close to your rental unit, do you actually have the free time to deal with tenants and all their needs? If the answer is yes, the next question is whether spending your valuable free time tending to these needs is even worth it.

The Value Of Hiring a Good Property Management Company

If you've decided that yes, you are in need of a property management company, then read on!

A good property management company is worth its weight in gold when you think about the amount of work that's taken off your plate as a landlord. Just check out some of the advantages you get in addition to all the extra help.

It truly is an attractive option if you can afford the fees, just make sure you're working with a reputable property management company. Not sure where to start? We highly recommend Cadenza Management. They're a team of property management professionals with years of experience handling residential and commercial real estate, dedicated to helping independent landlords like yourself.

Even if you don't go with our recommendation, we implore you to do your due diligence when searching for a property manager. While it may seem like an easy task, finding the right property management company and handing over the keys to your real estate comes with a lot trust and potential risks.

While property management isn't worth the money to some, it may make a lot of sense to others. If you're someone who owns multiple rental units and truly want a hands off, passive income stream, hiring a property manager is probably worth it. At the end of the day, it will likely be a balance between time and money.

Pre-Construction Closing Costs

First time home buyers in Toronto have heavily gravitated towards new, pre-construction homes over the years, attracted by the promise of lower prices and high potential upside. However, fresh-faced buyers are often baffled by the closing expenses associated with their pre-construction condo purchase. With so many unique closing fees associated with pre-construction condos, we've created a simple guide below to help buyers understand just how much their new condo will cost and what potential pitfalls they'll want to avoid.

Pre-Construction Condo Phases

Closing costs is a catch-all term used to describe any fees over and above the price of a new home, incurred to complete a real estate transaction. With new Toronto construction, closing costs occur in two stages; at the Interim Occupancy Phase and at the Final Closing Phase. If you're buying a pre-construction condo then you can expect to go through each of these distinct phases.


With pre-construction condos, there is a time in which parts of a condo are built, and livable, while others are not. Your specific interim occupancy phase commences once you are legally allowed to occupy your particular unit, even if other areas of the pre-construction condo are still under construction.


Your condo's builder will notify your lawyer of the date of your condo's closing. Being given this date means that you're entering the final phase as the City has done their final inspection on the construction and the condo is officially registered. Once you have this date, you should reach out to your lender to prepare your finances for the impending closing costs.

Your Guide to Interim Occupancy Fees

During this time, you're required to pay a monthly fee to the builder. Since this stage occurs before you've closed on the condo, the fees are paid directly to the builder and does not go toward your ownership of the home. You can expect this cost to be similar to what your monthly condo mortgage will be. This fee will be calculated based on the following factors:

  1. Interest on the unpaid balance of the purchase price of your pre-construction condo
  2. An estimate on the municipal taxes for your condo unit
  3. Condo maintenance fees

This fee will be paid for via post-dated cheques to your developer. Since this stage can last anywhere between a few months to two years, it's important to budget for these fees before signing a purchase contract.

Similarly, once your occupancy period begins, your Tarion warranty begins. This warranty covers you for 1, 2 or 7 year periods depending on which package you choose. Regardless, buyers across Toronto can expect to pay anywhere between $600-$1000/month on top of an enrollment fee.

Your Guide to Pre-Construction Closing Costs

Closer to your closing date, your lawyer will reach out with a "Statement of Adjustments", a document that highlights what additional costs are incurred as the condo unit is transferred from the builder to the you, the buyer. Along with this document, you'll be provided with a "Trust Ledger", which will outline how much money you will need to bring for the closing process.

Unfortunately, there's no standard amount for closing costs. Every condo in Toronto will charge something different, with costs ranging across the spectrum. However, there are a number of items that most people buying pre-construction condos can expect to pay at the time of closing:


This is often the biggest expense when buying new construction builds. Toronto charges provincial and municipal land transfer taxes for all real estate transactions, so you can expect a rate of >1% for any condo over $350K.


Bad news for all pre-construction condo buyers, the city of Toronto has dramatically increased the cost and number of these charges over the years to supplement small city budgets. Here are just a few charges that may end up on your statement:

Nowadays, you can expect these costs to come out to anywhere between $5-$20K.


You're required to have a lawyer handle your transaction when buying real estate in Toronto. This will be an additional $1500-$2500.


Since the home is completely new upon purchase, the condo will have to be connected to utilities (gas, water, hydro) for the first time. And unfortunately, it comes at a cost. Hooking up a pre-construction condo to utilities can cost $500-$2000.

Key Mistakes to Avoid

While this list may seem overwhelming, we do have some tips on how you can minimize the final cost on your pre-construction condo.

1. Cap your developmental fee

Since there is no standard closing cost amount, it's important that you negotiate a maximum cap into your agreement of purchase and sale with the builder. A hard cap is the max amount the development charge can be. A soft cap is a cap on the increase in development charges between when you sign and when the building closes. Make sure you work with your lawyer to get the best one for your situation.

2. Calculate your costs with HST

Levies and your Tarion Warranty are subject to HST, so remember to pull out the calculator to add 13% on everything. You'll need to have the exact amount of money ready if you're hoping to close on your new condo.

3. Take ownership of your legal fees

Finding a lawyer who specializes in pre-construction developments is vital to making your buying process as smooth as possible. However, don't let their expertise intimidate you and remember to always ask for a complete breakdown of exactly what is and is not included in their fee before signing a contract.


Pre-Construction HST Information - How to Avoid Pitfalls

One of the many pitfalls that new home buyers encounter revolves around the need to pay Harmonized Sales Taxes (HST) on their pre-construction condo. HST is a unique tax that's applied only to new construction, so those who encounter it are often fresh to the housing market and can be frustrated with its calculation. Even experienced home buyers find calculating HST one of the biggest headaches during the purchase process, adding on to the stress of balancing mortgage options and closing fees. Unfortunately, HST is a universal pain point across pre construction condo sales, so we've broken it down for you in simpler terms below.

What is Pre-Construction HST?

So you're thinking of buying a pre-construction condo, but you're told that you're going to have to pay some form of a real estate tax on your new home. What exactly is that tax? This tax is known as HST and amounts to 13% of your property's purchase price, with 5% for GST and 8% going to PST. While there's no getting out of paying HST, there are different manners in which you can receive a rebate on it once you've paid. Head over to to get in touch with one of our team's accounting professionals to learn more.

Are You Eligible For An HST Rebate?

Luckily, most people are eligible for a housing HST rebate. How you receive your HST rebate will be dependent on whether you plan on being the end-user of your new pre-construction condo or not.


That's great, because this is the easiest way for you to claim your HST housing rebate. If you, or any one of your direct relatives, plan to live in the home, then your housing rebate can be baked into your condo purchase price. This means that a builder will include the tax rebate in their pricing, leading to an overall reduced price on your condo.

While this is definitely the easiest HST rebate process, you'll have to make sure you file the right documents with the Canada Revenue Agency (CRA), in case they ever challenge the rebate. To avoid running into any problems in the future, you should be prepared to prove that you, or your direct relative, is living in the new home - whether that be changing the address on your driver's license or setting up a bank account that's linked to the unit.

Likewise, be very careful with co-signers; a co-signer on the lease who is not an immediate family member or spouse can invalidate your HST rebate, and you will not be eligible for one any longer. This could mean upwards of $30,000 lost on your bottom line!


If you're a real estate investor who purchased the pre-construction condo as a rental property, you won't qualify for the built-in HST rebate. As such, you'll need actual cash on hand to pay the HST fee upon closing. For real estate priced under $350,000 (So...not in Toronto), your HST will be 7.8% of the tax at closing. For a house worth over $450,000, you'll be charged $24,000 in HST at closing. The HST that you pay upfront is also what you'll receive back in your rebate.

To get your HST rebate quickly, you'll need to get a housing rebate application started, specifically the New Residential Rental Property Rebate form. To submit, you'll need to provide a 1 year lease agreement in order to prove that your new home will be rented out to a tenant for at least 12 months. Once you do so, you should receive your rebate within 2-3 months. You will need to do this within 2 years of closing on your new home, as you will no longer be eligible to apply for an HST rebate afterwards.

HST Housing Rebate Application Nuances

Great, you received your housing rebate as planned, and have been enjoying your new pre-construction condo as either a tenant or landlord for some time. Now, you're thinking about selling the home for a pretty profit, so what happens to the HST rebate if you sell?


If you or a direct relative lived in the condo for at least 12 months, there's no issue at all. You can sell it and not worry about repaying your HST rebate back to the government.


The same goes if you rented the condo out to a tenant, so long as it was rented out for a minimum of 1 year.

However, if you or your tenant resided in the new home for less than 12 months, you will be required to pay back the HST in full to the CRA.

The timeline of 1 year is a law put in place by the government to minimize condo "flipping", which has been the main driver for skyrocketing home prices in cities like Toronto and Mississauga over the last decade. By setting up this guardrail, home prices are protected from those looking to make a quick buck off red-hot real-estate waves.


Basically, if you play by the rules and submit your documents in a timely fashion, an HST rebate is pretty much guaranteed. Should your rebate be denied for any reason, you can always work with a team to file a Notice of Objection on your behalf. Likewise, if you're operating under unique and special circumstances, we always recommend working with an experienced real estate agent to ensure that your housing purchase and rebate process goes as smoothly as possible.

Should I Upgrade My Pre-Construction Condo?

The Toronto housing market has soared over the years, with most condos featuring some of the heftiest price tags in all of Canada. In such precarious economic times, you might be wondering, should I upgrade my pre-construction condo?

Have a pre-construction condo in your name? Consider these upgrades in your real estate investment!

Pre construction properties have been an excellent route for many first-time home buyers to get into the Toronto real estate market as a time where they may already be priced out; from a more flexible down-payment structure to a relatively passive way to make some returns in the first 3-5 years, the advantages of a pre-construction condo are plenty.

Though, another key reason why many people go for pre construction is due to the fact that it’s brand spanking new. With your pre construction condo being built from the ground up, there’s a lot of opportunity to make little tweaks and changes to perfect the house to be the condo of your dreams. Or at least, a new condo with higher resale value down the line if that’s the route you take.

The options available for customizing your condo are pretty extensive, you just need to have a chat with the builder to better understand what can be done to enhance your pre construction unit. While specific options and choices will differ from one condo to the next, here are some upgrades that  you definitely want to consider if you’ve got a pre-construction condo in your name…


Typically, both these items are available as additional purchases when new condos are bought, and it just might be worth your while to tag  them on to your final bill. Even if you don’t have a car and don’t ever plan on owning one, a parking spot is a coveted addition that can benefit you in the long run.

As a condo investor, you could attract more potential renters with the inclusion of a parking space. As an end-user of the condo, you can opt to make use of it yourself, or rent it out to make a nice profit every month. A win-win situation if you ask us. Similarly, with condo square footage shrinking with newer builds, extra space is always welcomed and storage should definitely be considered in your list of pre-construction upgrades.

Whether it’s for extra stuff or a couple of bikes for the summertime, storage lockers are a relatively affordable condo amenity and stand to make a decent ROI when it comes time to sell your Toronto condo.


Save yourself the visit to Ikea for the iconic white floor lamp and install ceiling light fixtures in every room of your newly purchased pre construction unit. A lesser known fact about pre construction homes is that they don’t always come with light fixtures installed, so you have to make sure you opt-in to get the upgrade.

Let your condo builder know early too, as it will be too late to add the electrical components once the concrete has been poured. While not nearly as important as lighting, you should also keep an eye out for sufficient outlets in your unit.

You can always have additional ones added to the condo, but they’re affordable and pre-planning this upgrade can really save you the headache later on when you realize you can’t rearrange furniture in your condo without some unsightly extension cords. It won’t bring much to the resale value of the condo, but having enough in-wall and in-floor electrical systems is truly a major game changer for the home.


There’s a variety of cosmetic upgrades you can consider for your home on top of the structural and spatial ones we mentioned above. While condo cosmetic changes may not necessarily add more resale value to the unit over the years, it’s nice to consider them in the process as it can determine the type of buyer your home ends up attracting. Of course, options for condo customizations will differ from builder to builder, but generally, real estate trends have focused on the kitchen and bathrooms of pre-construction condos.


Want something that instantly increases the resale value of your real estate investment right off the bat? Invest in some hardwood flooring for your condo. Not only is it an aesthetic that most homeowners desire, removing carpeting and matching existing floors after moving into your condo can actually be quite the challenge.

The existing wood will have turned a different shade after being exposed to the sun, so updates to try and match the coloring ends up being difficult. We can’t forget about the mess you’ll inevitably create in the unit when ripping out carpet and replacing the original floors if you change your mind later on - not exactly the "home sweet home" you'd want to live in. Make life easier and invest in the gold standard of home floors before it’s too late! Just make sure to maintain it throughout the years to keep the condo's resale value.


Hotel inspired amenities are what dreams are made of, so it’s no surprise that upgraded cosmetic features in the bathroom are a must on our list of pre-construction upgrades. Treat yourself to luxury and experience a fancy walk-in shower or deep soaker tub to take your condo bathroom to the next level. Ask your condo builder to finish it off with brushed metal faucets, soft close cabinets and large-format tilework to really leave a lasting impression on anyone who steps foot into the bathroom.


Wood and laminate countertops are typical standards in most buildings, but you'll want to take a look at upgrading them as they’re usually the most used areas in the home. Stone is a great way to increase longevity while giving the space a custom look and feel. Granite is a great option for those worried about staining, with its dense grain, consistent color and texture, and wide range of colors.

For those who want something a little more elevated to up the resale value, Marble and Quartz are popular favourites. Marble is known for its iconic, deep veining and is truly one of the most beautiful natural stones.

However, its porous nature makes it easily stained and is best suited for bathrooms. Quartz, on the other hand, is stain resistant, just like Granite, and provides another option for those looking to spruce up their kitchen counters. Just make sure to avoid excessive direct heat, which can cause damage to the stone. These are all great points to bring up with your builder if this upgrade is something you want in your condo!


Pair your new condo countertops with some high end cabinets and complimentary paint. Work with your developer to see what they recommend, but also ask to see if you can opt for high-quality finishes to ensure that your customizations last through the test of time.

The Takeaway

While our list covers the main considerations you should have when thinking of your pre-construction condo upgrades, it’s certainly not exhaustive and it’s worth chatting with real estate agents to help determine which options will fit your long term goals best. Once you have a game plan, and you have a couple of years before your pre-construction condo is actually ready, you can work with professional builders to nail down the specifics to truly make it the condo of your dreams!

Up and Coming Neighbourhoods for Investment

The Canadian real estate scene has been on fire for a while now, with the city of Toronto claiming the top spot year after year as the hottest city to purchase real estate investments in. It’s no surprise too, as real estate has quickly become a well known tool to build wealth over time.

Beginner and veteran investors alike have realized that only long-term investments into the housing market will generate the returns and value that’s needed for retirement. 

As if you weren't convinced already, the average home price isn’t falling any time soon, so any would-be investor would be smart to save up every penny they have to get into the real estate market as soon as possible, before you’re truly priced out. 

Why Investing In Toronto Real Estate Is A Great Idea

Beyond personal financial goals, there’s also a strong case for the great opportunity that Ontario’s housing market presents; investors around the world are flocking to Toronto's real estate market because there’s a high demand for housing, especially in popular cities like the ones we’ll review below. 

With a seller’s market in Ontario, there’s a good chance to turn a pretty profit if you choose to invest, especially if you’re looking to rent out your purchase. Low inventory and high demand in Canada's market makes investing in real estate in cities across Ontario even more fruitful, with a growing population keeping demand for real estate elevated. 

From 2016-2021, Ontario real estate markets only saw 36.9 new homes built for every 100 newcomers. This is a long way away from the 1 million new homes that Ontario actually needs in the next 10 years to meet demand. With a constant influx of immigrants into cities across Canada, of which only 50-60% invest in their own homes after 10 years, there’s clearly a strong need for rental units in the market to meet the demand for housing. 

Not only are there financial gains to be had with investing in the real estate market, the government has passed bills to encourage the average citizen to take the step to invest. In 2019, Bill 108 came into effect in Ontario, allowing for 2 units in a residential unit plus an additional residential unit in a building or structure ancillary to the house. This allows homeowners and investors to turn a single-family house into a property with 3 legal residential units, meaning that a regular citizen can easily transform into a profit generating real estate investor!

Now that you’re convinced that investing in real estate in Canada is the way to go, let’s explore some potential cities and places that could make for a great purchase in your real estate investing strategy. 

Top Neighbourhoods for Investment in Real Estate


You can’t talk about Canadian real estate without considering the city of Toronto! With its prominence across the world stage, investors fight tooth and nail for a chance at getting into the Toronto housing market. Every year, Canada gains a little more recognition, making any property in the Toronto Core or the Greater Toronto Area an excellent real estate investment. While the average house price for a place in these neighbourhoods will be higher than that of other cities, sales of downtown Toronto condos are not slowing down anytime soon. This trend makes investing in a property here an unmatched opportunity. 

“Didn’t a lot of residents leave the Toronto market during the pandemic, leveling out condo prices recently?” While this is true, the Toronto market has recovered nicely since the peak of Covid. Toronto has always had a strong draw for newcomers; anyone looking to move to Canada/Ontario typically lands in Toronto, especially with its abundance of universities and established reputation as a tech hub across Canada. As such, there’s always a need for housing in Toronto. It's safe to say that the city has rebounded from the exodus that the pandemic brought on, touting condo rental and purchase prices similar to, or higher than, pre-Covid times. With continued, healthy growth, it’s a no-brainer to consider Toronto when looking at property to invest in.

Avg. House Price

City of Toronto: $1.19M

GTA: $1.17M


Lesser known than the city center of Toronto, Durham is an up and coming place that’s expected to grow 10+% every 5 years, with a total project growth of 80% in the next 30 years. With such a strong growth trajectory, it’s definitely a neighbourhood you should consider. This is especially true if your real estate investment’s time horizon is long. As this place is in development, house prices can still fluctuate a lot, giving potential investors the chance to invest in property on the low and hold. With so much potential in the real estate of this region, it’s worth an extra look if long-term investing is in your cards! 

Ave. House Price: $968K


A little more developed than the previous location, Hamilton has grown popular for its ability to make Toronto investors a pretty penny. With bountiful job opportunities and a number of universities and colleges located nearby, this market is a great place to invest in a house for rental purposes. Cities in this region continue to grow and develop, making property in this market another great choice for long-term investors looking to park their wealth for a good chunk of time. Since the place is so large, it’s best to chat with experienced real estate agents to understand which city is right for you to invest in and what investing strategy will best suit your goals.

Ave. House Price

Hamilton West: $698K

East Hamilton: $667K

Hamilton Centre: $625K

The Hamilton Mountain: $789K 


Best known as Ontario's Wine Country, property in these neighbourhoods have grown to be some of the most popular spots among real estate investor circles in Canada. With limited supply in the market, it’s become a prime battleground for investment gems. If you’re lucky enough to add a beautiful Niagara house to your real estate portfolio, you’re bound to see some strong returns on your property in the long run. 

With close proximity to the US border, great highway access to the Toronto city center and increased accessibility via the Go train transit, the value of real estate in the region has only continued to grow. The region is now working on densification and growing its tourism industry, allowing real estate investors the ability to invest without fear of vacancy. 

Avg. House Price

St. Catherines: $655K

Welland: $571K

Port Colborne: $541K

Niagara Falls: $649K


With the largest population in Ontario outside of the Greater Toronto Area, a house in the Kitchener-Waterloo market makes for another popular real estate investment option. With local universities and a booming tech scene, would-be residents flood the area every year. An estimated 305,000 more are expected to move there in the next 30 years! Beyond population growth, flexible zoning bylaws for accessory dwelling units also gives investors the ease of turning their investment properties into cash flow positive rental homes.The only thing to note is that the city of Waterloo does require rental licensing, so beware before putting your down payment on a house. It’s a simple process but still an important enough requirement to think about before moving forward with the decision to invest. 

Avg. House Price: $825K


A more underrated spot just outside of Toronto, Barrie's housing market has been slowly and quietly developing over the last few years.Offering homeowners more space and a relatively easy commute into the city of Toronto, it has a population that's about to explode; Barrie is expected to grow 20% in the next 5 years, and another 92% in 30! This neighbourhood offers real estate investors the opportunity to get in and invest early, before house prices skyrocket. With accessory dwelling unit allowance, a single-family property can easily be retrofitted into a 3 door residence. This brings massive benefits to any investor who buys in early. This is definitely a place you’ll want to review with your real estate agent, even if the starting home price is a little steeper than your liking. 

Avg. House Price

Barrie: $836K

Orillia: $681K


The city expanded its boundaries back in 2017, expecting 56% growth in the next 30 years due to spillover from Toronto. With an above-average growth trajectory, it’s clear why real estate investors are eyeing property in the Brantford market like it’s the newest crypto coin. Offering more square footage when it comes to homes and backyards in Canada, the neighbourhood is popular among those who want to a place outside of the usual hustle and bustle of the city. A city-gal at heart? Not to worry, as the city has an intensification plan in place, signaling their invested interest in developing the region to accommodate all its newcomers. This plan will ensure that the area will have an even balance of urban and residential area, making it an attractive place for those looking to invest in a high-growth option outside of Toronto. 

Ave. House Price: $806K


Best known for its large population of students in Canada, London is another great region to look into for property investment options. With a yearly influx of newcomers, rental housing is always needed in these types of markets. This trend is even stronger when looking specifically at the number of international kids who come to the area; Most opt to apply for Canadian citizenship, meaning that they’ll be on the hook to live in Canada permanently for 3 of the next 5 years. For this reason, most will seek rental housing for the immediate future. With London’s push to attract even more international applicants, real estate investors can invest in property in the area with peace of mind!

Avg House Price: $673K

Should I Keep My Condo As An Investment Property in Toronto?

Congratulations! Despite Toronto's tight real estate market, you're on your way to purchase your second property in Toronto. You’ve achieved an amazing feat that most residents in Toronto are envious of, but with great power comes great responsibility.

Now you’re faced with a tough question; do you keep your first condo property now that you’ve moved on to another?

Toronto real estate is hard to come by. Some investors opt to sell their first condo property as soon as possible to start fresh with extra funds in their bank. While others choose to maintain the condo as an investment property for years to come.

While you can discuss your next property investment move with an experienced, Toronto-based real estate agent, the decision of what to do with your first property is ultimately in your capable hands.

To make it a little easier, we’ve compiled 4 things to consider when deciding whether you should keep your Toronto condo as a real estate investment property!


Under the right circumstances, even an average investment strategy can generate strong returns and that holds true even when it comes to Toronto real estate.

Real estate investors who purchased their condo property in the midst of the pandemic at record low prices are probably faring much better than those who were on the sell side. Real estate has enjoyed a swift ride up as property prices steadily increased as Toronto recovered from Covid-19 over the last 2 years.

If you capitalized on the drastic lows of the Toronto condo market over the last 2 years and snatched up a nice property below market value, it might be worth it to ride the wave and hang on to the condo for a while longer, as the Toronto real estate market continues to trend upwards. While there’s no guarantee that Toronto condo prices will continue to soar, just like no one could have predicted the exodus of city dwellers that the pandemic brought about, holding onto real estate generally provides positive returns in the long run.

So if you don’t need equity immediately, you may end up on the winning side of a hold strategy after a number of years if you do choose to maintain your Toronto condo as an investment property.


Investors who choose not to sell their first condo property have the option to become a landlord in Toronto and rent the property out to tenants for some extra income each month. While this additional rental income is a great way to pay off a mortgage or cover additional expenses, there are some caveats to renting out your condo. Investing the time to find a long-term, trustworthy tenant in Toronto is definitely a concern for most condo landlords, as you’d want to ensure that your condo is properly taken care of in your absence.

Even if you work with an experienced Toronto real estate agent with investment condo expertise and find a great tenant, they could still leave the property after their 12 month lease is up, leaving you to start the search all over again. Not only would it be a big time commitment, investors also have to consider the numerous responsibilities a condo landlord has to upkeep the property and tend to a tenant’s needs, obligations that might make additional rental income not worth the effort.

However, if the property has been well maintained and the condo is located in a convenient area in the city, it stands a chance to fetch a pretty penny in Toronto's rental market. Who doesn’t want extra rental income every month?


Another thing to consider, should you choose to keep your first condo and rent it out, is how close you are to the property.

Not only can it ease your anxiety around the type of tenant you’ve rented your precious property to, it can also make life as a landlord a lot easier; property management and supporting your tenants’ needs becomes a lot easier when the drive to the condo is short and sweet. Being in close proximity to your condo also allows you to manage the property yourself, instead of investing in an external property management company, making your investment property's monthly cash flow significantly better.

If your new home is close to your first condo, it's another reason not to sell the property, opting to keep the original property as an investment and play the role of Toronto landlord instead. The rental income may just be worth investing your time to tend to your new tenant's requests!


Toronto’s real estate market is only getting tighter, with demand for property outstripping supply as more and more people flock to Canada's top city each year. As a condo owner in Toronto, you have the opportunity to capitalize on this demand for property, especially if your condo was built after 2018; with the added benefit of relaxed rent control laws, your investment condo stands to make more than the average, as you can charge more for your condo than other property owners with older Toronto condos.

Additionally, investors can expect their investment returns to grow with time, as Canada and subsequently, Toronto's, population continues to soar and the demand for condos in the city climbs. As tenants come in and out of Toronto, investors will most likely be able to increase the monthly rent over time, allowing the investment property returns to snowball over the years as rent prices continue to rise across the city. Of course, the assumption here is that your condo is located in a prime location in the city, with lots of potential renters interested.

If not, it may not make sense to turn your first purchase into an investment property and it would be better off as a quick sell. However, if it fits the bill for an attractive Toronto condo suitable for renters, investing the time to rent it out could lead to great returns in the future!


If you decide to cut ties with your first condo and move on to your new home with no strings attached, then so be it. But if you think it through and decide to keep your condo as an investment, you could really set yourself up for long-term returns and success. It’s best to speak to a few experienced, Toronto-based real estate agents to get all the necessary information, but ultimately, you have to search for the answer on your own. If you're interested in seeing available resale properties, head over to our real estate brokerage at

Consider what will work for your personal goals and how much time you’re willing to invest over the years. You never know, maybe this is the first step to a portfolio of investment properties across Toronto!

One Bedroom vs Two Bedroom Condo Investment

Which investment is better, a one or two bedroom condo?

So you’ve made the decision to enter the red-hot Toronto real estate market, great! Now comes a tsunami of other decisions that come with buying homes, starting with one that inexperienced and veteran condo-buyers alike are often plagued by when reviewing potential investments; should I buy a one or two bedroom condo? While there are definitely pros and cons to each type of condo, it’s important to first understand your personal goal with the home, so you can then properly investigate the factors that have the greatest influence on reaching that goal. Luckily, there are a number of standard differences that can sway you either way, which we’ll review in depth below.



Whether you’re looking at a condo in the core of downtown Toronto or a family home out West by Mississauga, the location of your condo will play a big role in determining whether a one or two bedroom is better suited for you and your goals. A condo with one room in a prime location, near universities, grocery stores, and public transport will undoubtedly cost you a lot more than a 2 bedroom home that’s further out with less conveniences. However, even without convenience luxuries, the price per square footage of a one bedroom condo in an upscale area can far exceed that of a 2 bedroom condo that’s closer to the city center but located in a lower socioeconomic area. Clearly, a condo's location and its surroundings can strongly impact the price of the unit, maybe even more than whether it has one or two bedrooms in it. With that in mind, it’s important to strike a balance between your needs, wants and budget when it comes to condo hunting.



There are 2 kinds of apartments; those constructed in co-operative societies or ones that are built as condominiums. You’ll want to do your due diligence to understand the nature of your apartment, as there are specific rental rules to each. Co-op buildings do not allow for subletting, whereas condos are much more flexible and allow for rental use. Why does this matter? Well, if you're hoping to turn a profit with your real estate investment down the road, it's important to understand the difference between the options. If you plan on buying a home in a condominium building, it might make more sense to purchase a unit with more than 1 bedroom, with the potential to use a spare bedroom for rental purposes. On the flip side, if you’re looking at a co-op building and you’re a single person, a condo with only one room is the way to go, as purchasing a 2-bedroom condo might be money wasted since the extra bedroom can’t be rented out for gains.



If you’re entering the market solely for investment purposes, like many people do, it’s worth understanding how a condo's size and its bedroom count can impact your rental returns. With rental condos being on the rise, both one and 2 bedroom condos are highly popular due to their overall affordability, but the slight differences between each kind can influence your tenancy fill rate and what kind of tenants you end up attracting to your home. A one bedroom condo will typically attract young professionals or couples who prefer a little more space than a studio unit. The good thing is that densely populated cities like Toronto are full of these potential tenants, which makes filling one of these homes relatively easy. However, these tenants may leave after a year or two to chase new jobs, dreams or loves, leaving you with the task of finding a replacement tenant every couple of years. On the other hand, a larger unit with more than 1 bedroom can be very popular with families, especially if it's close to schools, childcare and community parks, as families typically require condos with more child-friendly conveniences. With families, you can expect a longer tenancy and consistent returns on your investment property.

Though, it’s important to note that while one and 2 bedroom units are in high demand, ultimately the condo’s location will play a pivotal role in your ability to fill the space. If your place is located far from the city center or desired conveniences, it won't matter if you have a one or two bedroom unit, the chances of getting tenants are lower.



No matter what types of homes you’re looking at, maintenance costs are a vital consideration when reviewing potential investments. You can expect wear and tear, plumbing, property taxes, utility bills and the like to be more costly when it comes to larger condos, whereas a smaller, one bedroom benefits from a smaller square footage. With extra space comes extra opportunities to pay.

While some of the costs can be passed on to your tenants to lessen your load as the landlord, be prepared for more push back from your family-oriented tenants in a larger 2-bedroom unit. Negotiations are harder when each penny saved goes towards a child’s future, so you may have to give a little when it comes to eating some costs with larger condos.



It’s obvious that a condo with more than 1 bedroom will demand a higher rental price than that with less, as any extra space commands a price premium in any over-crowded city. However, as mentioned before, the larger the space, the more the potential costs. Once those fees are factored in, along with taxes, you’ll see that the rental income difference between a one and 2 bedroom unit are actually quite small.

Likewise, location will also play a large factor here; an investment property in a prime area will fetch a much higher price, regardless of the number of bedrooms, than a condo unit in a less attractive location.



Purchasing a home is a milestone in life that should definitely be celebrated, but just make sure to keep some of these considerations in mind before jumping the gun on an investment. At the end of the day, you have to understand what kind of condos you’re looking for and figure out what works best for your living situation, financial goals and future plans.

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