Toronto is the economic capital of Canada and one of the largest metropolitan areas in North America. It is also one of the most expensive metros to live in. The real estate market in Toronto has been an active place, but it can be difficult to comprehend how many transactions occur with each property.
Since Toronto real estate is a highly popular market in Canada, the Greater Toronto Area (GTA) is the most sought-after location for many Canadians. So, how can I help you maximize profit in this area? Read on to learn more.
Maximizing Profits in GTA's Real Estate
Real estate agents need to be efficient with their marketing strategies and identify trends early on to maximize their profits. That’s exactly what I do. Being connected and in-the-know gives me, and my clients, a competitive advantage.
Toronto real estate agents have been bidding to see who can buy the most properties in recent years. With the number of properties increasing, so has the value of them.
Real estate agents are trying different methods to maximize profits on a property. Some of them include renovations and building more units than what is required. When developers can plan and know how much demand there is for new condos or apartments, they can use that knowledge to their advantage and make sure that they can maximize their profits.
Many factors could increase property value, but some of the most important factors are the building's location, size, and condition. However, one factor has a major impact on these three: the price.
Price
Price largely affects a sale's success or failure. For example, if I'm thinking about selling my house for $1 million, it will be easy to find buyers if I keep it within certain boundaries in terms of the price range. If I set a higher price, I might have trouble finding buyers since they might not be willing to pay that much for what they perceive as a more expensive house. Understanding the price game and knowing what your property or a property you’re interested in is worth, is where I come in.
Location
Location can significantly impact property profits, or at least it should. The Greater Toronto Area has over 6 million residents and has one of the largest GDPs in Canada, making it an important market for commercial real estate developments. Many amenities and activities will attract people to live close to certain parts of town and within proximity to other cities, such as Ottawa, Hamilton, or Mississauga. For example, it might be easier to make a profit by investing in properties near Toronto's downtown area than it would be in properties further out in the suburbs.
I also deal with many pre-construction properties, meaning you have the chance to get in on a deal to make a higher ROI before it becomes financially out of reach.
Condition of the Building
One of the major factors determining a property's value is its condition. For example, a property in good condition may have some internal damage, but it is worth more than a property with extensive damages.
The condition of the property reflects a market's health. When it is in good shape, or when it has been recently updated, there is more demand for it from buyers. Low demand leads to lower property value and makes it difficult for potential sellers to recoup their investment in renovations.
Generally speaking, if the price of a piece of real estate is more than 10% over market value, then it might need renovations and repairs. If the condition becomes poor over time, homeowners might want to sell before their investment becomes too much to bear.
Final Thoughts:
Being able to property evaluate a property will save you time, money and future headaches. If you’re looking to buy or sell, I’d love to help you find the right fit. Contact me today and let’s make a plan to see how we can make your real estate portfolio flourish.
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