How Toronto Property Values Will Benefit from New Public Transport

It is often the case that politicians will clamor to take credit for new transportation improvements such as the opening of a new subway. Though certain figures and political  parties will surely benefit from having better access to cheaper and easier transportation, no one could be happier than the residents of the area who would be reaping the benefits of such an event.

Real Estate Benefits

Easier  travel and commute is just the tip of the ice berg as far as the benefits of a new transport system can bring. Almost all the real estate along the route or the track is sure to gain an increase in value!

It isn’t a secret that properties that have good access to roads and transportation generally are worth more than their less accessible counterparts. In fact, a US-based study showed that even in times of economic crisis, homes that are near public transit are able to maintain more of their value as compared to homes that are in non-transit areas.

The stability of property values is also affected by the types of transit available nearby. A phenomenon called the “transit premium “ is the term for this. This phenomenon is when property values tend to remain higher in areas with consistent public transportation access, such as what is true for properties near train stations and highways. The values usually drop the farther you are away from the train lines or highway. Too often, buyers were observed to follow a deal breaker rule, often considering more than 8 minutes walk to be a deal breaker when renting or purchasing a home.

The Course of Development

It can’t be denied that development follows subways. Although we don’t have the specific numbers for Toronto right now, the fact remains that the most desirable Toronto neighbourhoods are all well-served by transit access. We are well aware that this is just one of the many factors for an area’s desirability but we also can’t overlook the fact that for many homebuyers, especially first time homeowners, a short commute to work is near the top if not the top priority.

How Toronto’s Real Estate Market Is Shaped by Transit

Affordable areas have been known to skyrocket in value as demand surges when said area is made accessible. This is true for both residential and commercial spaces. Rents are known to be normally 40% more expensive in the 500 meters radius around subways or light rail tracks.

Due to  this intensifying urbanization, an 83% population growth is predicted for Toronto by  year 2031. It should be noted though that this intensifying urbanization isn’t just taking place in the middle of the downtown bur rather at ‘outer communities’. Such is the case for communities along Eglinton and Finch, where the demand has been steadily giving rise to further increase in property values.

Curious about what impact urbanization may have a profound effect on the possibility of you getting approved for a home equity loan? Contact us and we’ll walk you through the process.

Top 10 Neighbourhoods to Watch Out for in Toronto 2018

Toronto has been growing exponentially in the past two decades with the population ballooning to 6.5 million in 2016 from merely 2 million in 1990. With this population growth comes millions of new residents looking for homes, driving up home prices more so in established areas. Your best bet in scoring a deal is to look for emerging neighbourhoods and buy a home there. Luckily for you, we’ve compiled 10 of the hottest such neighbourhoods in Toronto below.

Yonge and Sheppard

Disguised by a suburban vibe and situated in Sheppard station, Yonge and Sheppard is no doubt right in the hottest spot for Toronto condo development. Be quick to invest while prices are still competitive and people are still thinking it’s a bit too far north. It is only a 25 minute ride away from Dundas station right in downtown Toronto.

Leslieville East

Leslieville East is not the same as Leslieville and is actually right between Leslieville and The Beaches. It is 20 minutes away by streetcar ride to downtown Toronto and prices are incredibly low, especially by Toronto standards.

Danforth Village

Danforth Village is near to both downtown and midtown Toronto and is where Greek Town is. Commuting is made accessible by streetcars and a lot of renovated homes are for sale at great prices.

Downsview

Not yet at its peak which explains the amazing condo prices, Downsview has a lot of shops and restaurants that are bound to keep growing as more and more are discovering the neighbourhood. Access to the rest of Toronto is made easy by the Downsview station.

Regent Park

Though considered as a low-income neighbourhood, Regent Park real estate has been steadily rising up in prices as community services have improved in recent years. The neighbourhood in Regent Park is also being revitalized with a mix of rental apartments, condominiums, and public housing.

Birch Cliff

Birch Cliff is right along Lake Ontario. It is on top of the western side of the Scarborough Bluffs, making it an even more beautiful neighbourhood. Though homes here are usually big and quite expensive, the condos are a lot more wallet-friendly. You’ll also love the sprinkling of restaurants and coffee shops.

Gerrard East

Gerrard East is east of Riverdale. A lot of real estate are still awaiting owners with very attractive prices. With how fast the neighbourhood is growing, this won’t be for long.

Rockcliffe-Smythe

Rockcliffe-Smythe was named as one of the top 3 neighbourhoods in Toronto for those who are looking for their first home. There are lots of green spaces and schools plus a newly opened mall and a community centre in early 2017.

The West Don Lands

The neighbourhood of West Don Lands is still being constructed but most of the real estate has been turned to residential area from being an industrial zone. The area has a few high rises, a huge park, some low income housing, and student housing.

Yonge and Finch

The Yonge and Finch neighbourhood is at the last stop of the main yellow subway line and has been a Toronto condo development hotspot for years. Persian and Korean food come aplenty and rent is really cheap. Not a bad place to stay for someone who want to save on rent.

Searching for a way to help you finance an investment property? Why not use your home equity? Contact us to know more about how we can help you get your dream second property with a loan.

 

How Does the Location of Public Transit Affect Home Prices in Toronto?

It is predicted that a residential building boom is bound to happen as Toronto builds more means of public transportation. As of now, GTA homebuyers are increasingly looking for homes that have access to public transportation such as the subway, resulting to a boost in property values in highly desired areas.

The Demands of Urban Living

Most of the new residents in Toronto are drawn to the area because of work, business, or education, making them want homes that would permit them to do all even without owning a car. For those who bought condo units at the Vaughan Metropolitan Centre due to open in 2019, this is a dream made true because the Spadina subway extension is scheduled to open in late 2018. This means that the future residents of the condos at Vaughan Metropolitan Centre will just be metres away from a subway station, making their commute a lot more convenient and shorter than those who live farther away.

Homes like the condos in the Vaughan Metropolitan Centre are part of the Cosmos development home building boom that is tied to the new transit lines in Toronto, homes that are envisioned by developers to blur the line between suburban and urban living. This development also answers the demand for homes with easy public transit access that is very much sought-after by GTA homebuyers.

New Interest in Condo Living?

Incidentally, the location of Vaughan Metropolitan Centre is close to golf courses, shopping venues, and theatres, making it even more desirable in the eyes of GTA homebuyers, more so for young professionals.

Young professionals are choosing to live within their means and adapting the “less is more” mindset when it comes to living space. Some find that the extra work for maintaining a house is quite off-putting and can be overwhelming for a new homeowner.

The above is supported by Liberty Development’s Marco Filice who shared that their fastest-selling and highest-volume project they’ve done is Cosmos. Liberty Development bought the condo site 5 years ago when they first heard of the subway project. They say that these days are an exciting time in the GTA as people beginning to live  nearer their workplaces.

More Opportunities

Filice further shared the people are now more aware of the benefits of using public transportation instead of relying on having a car to get around, a thought that is seconded by Haven Developments’ Jordan Tenerman. Their company built a condo near Bayview Village, just a few steps away from the Sheppard subway. He added that people are happy to trade less space for convenience.

Freed Development’s Peter Freed shared that transit proximity is a major factor in real estate development today, because people want a location that bring them close to public transportation no matter if it costs more per square foot as compared to a typical house. Are you the same? Then the following developments are worth a look!

  • 150 and 155 Redpath by Freed and Capital Developments
  • SIX25BV by Haven Developments
  • Cosmos Condos by Liberty Development Corp.
  • Southside Residences at Gramercy Park
  • SonicCondos by Lindvest at Eglinton Ave. East and Don Mills Rd.

The above means that if you own a home near the cited locations, you may have more home equity than you think. Want to use that? Contact us for details.