New Designer-Investor in Toronto, Canada

11 Replies

I have worked as a restaurant designer for about 4 years in Toronto and now work as a art director (set design) in the feature film industry. I've invested time into real estate in northern Ontario. I built a house with my father and then sold it. I also flipped a cabin with my father which we now rent out during the summer. I have lived in Toronto for 9 years and I am excited to begin investing in real estate in this great city! I know I cannot invest alone so I am hoping to find an enthusiastic mentor! What I can offer in return is part-time design consulting to create more affordable, efficient and modern design solutions. I recently attended a real estate investment seminar and quickly found that many of the people that had attended the same seminar highly recommend BiggerPockets. Looking forward to learning from this vibrant community!

Henry Salonen 

Hey @Henry Salonen

Good to see you here! Where in northern Ontario have you invested? I am in Sudbury and just bought my first home, but am still looking at purchasing a rental property. The film industry seems to be pretty active in Sudbury as well. It's always neat to see the caravan of big trucks and crews in nearby neighbourhoods shooting movies. 

Best of luck with your investing career and I hope you enjoy learning a lot at BiggerPockets!

Cheers,

Dea

Hi @Dea Chu,

Thank you for the warm welcome! Both of the properties I have invested in have been in Seguin Ontario. Will you be investing in a rental property in Sudbury or have you considered investing out of town? In the long term I'm considering investing outside of Toronto once again, perhaps even in the US, however I'd like to establish a few investment properties in Toronto first. Filming on location is certainly always full of excitement! 

Best,

Henry

Hi @Henry Salonen ,

I do plan on investing in the Sudbury area, mainly because I would want to manage the property(ies) myself to start and I'd like to be nearby. The prices here are nowhere near Toronto prices, but I have a hard time making the numbers work at current prices. Anything below market price would require some work, and I don't want to take on a big reno to start with. I hear patience is key as a real estate investor, so I'm getting a lot of practice with that, and likely some analysis paralysis as well...

Best of luck finding some investment opportunities in Toronto!

Originally posted by @Henry Salonen :

I have worked as a restaurant designer for about 4 years in Toronto and now work as a art director (set design) in the feature film industry. I've invested time into real estate in northern Ontario. I built a house with my father and then sold it. I also flipped a cabin with my father which we now rent out during the summer. I have lived in Toronto for 9 years and I am excited to begin investing in real estate in this great city! I know I cannot invest alone so I am hoping to find an enthusiastic mentor! What I can offer in return is part-time design consulting to create more affordable, efficient and modern design solutions. I recently attended a real estate investment seminar and quickly found that many of the people that had attended the same seminar highly recommend BiggerPockets. Looking forward to learning from this vibrant community!

Henry Salonen 

 Best of luck moving forward I imagine that flip and reno experience will serve you very well in your first few deals! If you would like any information on my market let me know I can help educate you.

Originally posted by @Samuel Sedore :
Originally posted by @Henry Salonen:

I have worked as a restaurant designer for about 4 years in Toronto and now work as a art director (set design) in the feature film industry. I've invested time into real estate in northern Ontario. I built a house with my father and then sold it. I also flipped a cabin with my father which we now rent out during the summer. I have lived in Toronto for 9 years and I am excited to begin investing in real estate in this great city! I know I cannot invest alone so I am hoping to find an enthusiastic mentor! What I can offer in return is part-time design consulting to create more affordable, efficient and modern design solutions. I recently attended a real estate investment seminar and quickly found that many of the people that had attended the same seminar highly recommend BiggerPockets. Looking forward to learning from this vibrant community!

Henry Salonen 

 Best of luck moving forward I imagine that flip and reno experience will serve you very well in your first few deals! If you would like any information on my market let me know I can help educate you.

Thank you @Samuel Sedore,

I do believe that the flip and reno experience will be of help eventually. I am however considering starting out by setting up a boutique condo units as rentals here in Toronto as I have very little time to manage a renovation at the present time. The Toronto condo market seems to be healthy. Down the road I do hope to invest in Waterloo. I once studied at University of Waterloo and I would be interested in setting up a rental property near the University. Is this something that you would recommend?

Originally posted by @Henry Salonen :
Originally posted by @Samuel Sedore:
Originally posted by @Henry Salonen:

I have worked as a restaurant designer for about 4 years in Toronto and now work as a art director (set design) in the feature film industry. I've invested time into real estate in northern Ontario. I built a house with my father and then sold it. I also flipped a cabin with my father which we now rent out during the summer. I have lived in Toronto for 9 years and I am excited to begin investing in real estate in this great city! I know I cannot invest alone so I am hoping to find an enthusiastic mentor! What I can offer in return is part-time design consulting to create more affordable, efficient and modern design solutions. I recently attended a real estate investment seminar and quickly found that many of the people that had attended the same seminar highly recommend BiggerPockets. Looking forward to learning from this vibrant community!

Henry Salonen 

 Best of luck moving forward I imagine that flip and reno experience will serve you very well in your first few deals! If you would like any information on my market let me know I can help educate you.

Thank you @Samuel Sedore,

I do believe that the flip and reno experience will be of help eventually. I am however considering starting out by setting up a boutique condo units as rentals here in Toronto as I have very little time to manage a renovation at the present time. The Toronto condo market seems to be healthy. Down the road I do hope to invest in Waterloo. I once studied at University of Waterloo and I would be interested in setting up a rental property near the University. Is this something that you would recommend?

 I would actually advise against that! I have noticed this summer that the waterloo rental market is on the down, developers are putting in huge high rise building with high end finishes for the students at the same price, saturating the market.

Personally I see more strength in Kitchener and Cambridge rentals, Waterloo is great to more turn key though and less cash flow. Also they have way more little pain in the *** by-laws to abide by.

Also if your reserach suggest boutique condos are a good way to go then try them out. Although I would caution that with the current economical news and grey clouds looming, I think the Toronto condo market is higher risk. My reason are that they will be first to see depreciation ad they have no land value to justify a price technically, just the supply and demand factor. Also due to the rising utility costs and our sinking dollar, I would be cautious to make sure none of the condo corp is established and stable. 

While it will likely cashflow, be mindful of your exit strategy!

Originally posted by @Samuel Sedore :
Originally posted by @Henry Salonen:
Originally posted by @Samuel Sedore:
Originally posted by @Henry Salonen:

I have worked as a restaurant designer for about 4 years in Toronto and now work as a art director (set design) in the feature film industry. I've invested time into real estate in northern Ontario. I built a house with my father and then sold it. I also flipped a cabin with my father which we now rent out during the summer. I have lived in Toronto for 9 years and I am excited to begin investing in real estate in this great city! I know I cannot invest alone so I am hoping to find an enthusiastic mentor! What I can offer in return is part-time design consulting to create more affordable, efficient and modern design solutions. I recently attended a real estate investment seminar and quickly found that many of the people that had attended the same seminar highly recommend BiggerPockets. Looking forward to learning from this vibrant community!

Henry Salonen 

 Best of luck moving forward I imagine that flip and reno experience will serve you very well in your first few deals! If you would like any information on my market let me know I can help educate you.

Thank you @Samuel Sedore,

I do believe that the flip and reno experience will be of help eventually. I am however considering starting out by setting up a boutique condo units as rentals here in Toronto as I have very little time to manage a renovation at the present time. The Toronto condo market seems to be healthy. Down the road I do hope to invest in Waterloo. I once studied at University of Waterloo and I would be interested in setting up a rental property near the University. Is this something that you would recommend?

 I would actually advise against that! I have noticed this summer that the waterloo rental market is on the down, developers are putting in huge high rise building with high end finishes for the students at the same price, saturating the market.

Personally I see more strength in Kitchener and Cambridge rentals, Waterloo is great to more turn key though and less cash flow. Also they have way more little pain in the *** by-laws to abide by.

Also if your reserach suggest boutique condos are a good way to go then try them out. Although I would caution that with the current economical news and grey clouds looming, I think the Toronto condo market is higher risk. My reason are that they will be first to see depreciation ad they have no land value to justify a price technically, just the supply and demand factor. Also due to the rising utility costs and our sinking dollar, I would be cautious to make sure none of the condo corp is established and stable. 

While it will likely cashflow, be mindful of your exit strategy!

 I appreciate the valuable feedback! I can now push the future Waterloo student rental out of my headspace! I will keep the turn key option in mind though.

From what I gather yes I agree with you completely condos are higher risk and they will be the first effected if the Toronto market takes a big hit. However it seem the riskiest area of Toronto condo investment are the cookie-cutter units, which I plan to stay far away from. There seem to be a few gems in this city, a few unique low-rise buildings that I believe would be sought after in almost any market. 

I am eager to begin and I hope to begin locally. I am more familiar with the downtown Toronto condo market at this point than anything else (although I have much to learn). It may however be wiser to begin to research investing in a single family home. The issue is the prices are much higher and I would need to look outside of downtown Toronto and perhaps even outside of the GTA. 

Your warnings are not landing on deaf ears. I will deeply consider these thoughts and I will continue to do research before I act. I will talk to local agents and connect with Toronto condo investors to gain more information. I will definitely plan my exit strategy! 

Originally posted by @Henry Salonen :
Originally posted by @Samuel Sedore:
Originally posted by @Henry Salonen:
Originally posted by @Samuel Sedore:
Originally posted by @Henry Salonen:

I have worked as a restaurant designer for about 4 years in Toronto and now work as a art director (set design) in the feature film industry. I've invested time into real estate in northern Ontario. I built a house with my father and then sold it. I also flipped a cabin with my father which we now rent out during the summer. I have lived in Toronto for 9 years and I am excited to begin investing in real estate in this great city! I know I cannot invest alone so I am hoping to find an enthusiastic mentor! What I can offer in return is part-time design consulting to create more affordable, efficient and modern design solutions. I recently attended a real estate investment seminar and quickly found that many of the people that had attended the same seminar highly recommend BiggerPockets. Looking forward to learning from this vibrant community!

Henry Salonen 

 Best of luck moving forward I imagine that flip and reno experience will serve you very well in your first few deals! If you would like any information on my market let me know I can help educate you.

Thank you @Samuel Sedore,

I do believe that the flip and reno experience will be of help eventually. I am however considering starting out by setting up a boutique condo units as rentals here in Toronto as I have very little time to manage a renovation at the present time. The Toronto condo market seems to be healthy. Down the road I do hope to invest in Waterloo. I once studied at University of Waterloo and I would be interested in setting up a rental property near the University. Is this something that you would recommend?

 I would actually advise against that! I have noticed this summer that the waterloo rental market is on the down, developers are putting in huge high rise building with high end finishes for the students at the same price, saturating the market.

Personally I see more strength in Kitchener and Cambridge rentals, Waterloo is great to more turn key though and less cash flow. Also they have way more little pain in the *** by-laws to abide by.

Also if your reserach suggest boutique condos are a good way to go then try them out. Although I would caution that with the current economical news and grey clouds looming, I think the Toronto condo market is higher risk. My reason are that they will be first to see depreciation ad they have no land value to justify a price technically, just the supply and demand factor. Also due to the rising utility costs and our sinking dollar, I would be cautious to make sure none of the condo corp is established and stable. 

While it will likely cashflow, be mindful of your exit strategy!

 I appreciate the valuable feedback! I can now push the future Waterloo student rental out of my headspace! I will keep the turn key option in mind though.

From what I gather yes I agree with you completely condos are higher risk and they will be the first effected if the Toronto market takes a big hit. However it seem the riskiest area of Toronto condo investment are the cookie-cutter units, which I plan to stay far away from. There seem to be a few gems in this city, a few unique low-rise buildings that I believe would be sought after in almost any market. 

I am eager to begin and I hope to begin locally. I am more familiar with the downtown Toronto condo market at this point than anything else (although I have much to learn). It may however be wiser to begin to research investing in a single family home. The issue is the prices are much higher and I would need to look outside of downtown Toronto and perhaps even outside of the GTA. 

Your warnings are not landing on deaf ears. I will deeply consider these thoughts and I will continue to do research before I act. I will talk to local agents and connect with Toronto condo investors to gain more information. I will definitely plan my exit strategy! 

Henry

The condo market in Toronto in general is not doing so well as the single family home market has taken off. However, I totally agree with you on cookie cutter condos vs chic or boutique condos. Condos in certain pockets in downtown including chic boutique condos have higher demand than all others. Sometimes its a development that was built and maintained well that kept the maintenance fees relatively low year after year that will effect the demand and appreciation AKA College Park and a number of others. On the flip side a development that required a lot of maintenance where the maintenance fees went up that effected appreciation like 701-705 King West. My client bought a unit 4 years ago and now will only sell a couple thousand more than what he paid for it thanks to 2 fee increases in last 3 years. So you really have to know where to buy like in any real estate market.. 

Those days of buying brand new condos and assigning them are over. 2009-10 was primetime for that and investors were making a killing all over..

Good luck  Let me know if you have any questions

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