Is it possible to cash positive in Toronto anymore?

Is it possible to cash positive in Toronto anymore?

Rental Property Investor · Toronto, ON · Member since 2019 · 8 posts · 3 votes

I used to invest in Toronto often. Made a ton of money here. Recently, I have been running some numbers on a few different kinds of rental projects and it doesn’t look like it’s worth it to start. I think doing triplex and up type of projects could cash flow positive but the amount of capital needed would be too significant. I feel like my money would be better invested globally. What is everyone’s thoughts?

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  • Developer · Ottawa, Ontario · Member since 2014 · 212 posts · 169 votes
    6y

    Agree completely. Toronto continues to add 125,000 population a year. Demand exceeds supply by a wide margin, but rental prices have not increased to reflect the higher purchase prices and higher development costs. The city is trying to regulate short term rentals and shift some of that inventory back into the permanent housing market. Wait a little to see how that settles out. There are some strategies that are working in Toronto, but straight up rentals are not it. 

  • Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    6y

    @Allan Flamm

    You need to create cash flow by dividing freehold homes into duplex triplex and or rent out by rooms..

    Laneway housing became an option but like you said it requires immense capital.

    That's the only way to roll in Toronto as it is an appreciating market.

    Players with less capital seek smaller cities like London and Windsor or even in the US..

    Cash Flow is King in the US

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