Real estate in Toronto has seen tremendous highs and lows over the past decade. For many, it’s an exciting journey, but it can also come with valuable lessons. Looking back on my own experience, there’s one decision I regret more than anything else—and it’s a mistake you can avoid if you're planning to climb the property ladder in the future.
The Lesson From My First Condo
When I bought my first condo, I was thrilled to have a place to call my own. At the time, I paid $292,900 for it. But what still haunts me today isn’t the purchase itself—it’s the missed opportunity to buy something that could have provided more long-term value.
Back then, just down the street, there were freehold properties selling for $450,000 to $500,000. Admittedly, that price point was beyond my budget, but with some creative planning—such as exploring additional funding options—I might have been able to stretch to purchase a two-bedroom unit or even a freehold property. Today, the value of those freehold homes has far outpaced condos.
This experience taught me that when purchasing a property, thinking about how it will grow in value over time is just as important as the immediate financial commitment.
Why Adding Value Matters
One of the most important lessons I’ve learned is the concept of "adding value." Whether you’re buying a freehold home or a condo, consider how you can improve or enhance the property. For example:
Properties with built-in potential for improvement not only preserve their value but often grow it significantly over time. A well-chosen property with unique or upgraded features is much easier to sell and will likely provide better returns when you decide to move up the ladder.
Strategic Buying in Toronto’s Market
The Toronto real estate market is competitive, but opportunities still exist. With the market cooling slightly compared to its peak three years ago, buyers now have access to properties that were previously out of reach.
The key is to focus on properties that offer both immediate livability and long-term potential. For instance, a condo with a den and parking may cost slightly more today, but it could provide significant benefits when you’re ready to sell. Similarly, freehold homes that need minor cosmetic upgrades—like fresh paint or new lighting—can yield incredible returns for relatively small investments.
The Importance of Climbing the Ladder
It took me 10 years to purchase my first freehold property in Toronto. Along the way, I invested in properties that allowed me to build equity and take incremental steps toward my dream home. One of the biggest mistakes new buyers make is trying to hit a home run with their first property. Instead, think of it as a series of steps:
What Buyers Should Look For
If you’re preparing to purchase your first property, here are some practical tips:
Looking Ahead to 2025
As we approach 2025, the Toronto real estate market continues to present opportunities for strategic buyers. With prices stabilizing, now is an excellent time to explore options that fit your financial goals and future plans.
Remember, buying real estate is not just about finding a home for today. It’s about positioning yourself for tomorrow. By thinking strategically, you can avoid the mistakes I made and set yourself up for long-term success on the property ladder.
The Lesson From My First Condo
When I bought my first condo, I was thrilled to have a place to call my own. At the time, I paid $292,900 for it. But what still haunts me today isn’t the purchase itself—it’s the missed opportunity to buy something that could have provided more long-term value.
Back then, just down the street, there were freehold properties selling for $450,000 to $500,000. Admittedly, that price point was beyond my budget, but with some creative planning—such as exploring additional funding options—I might have been able to stretch to purchase a two-bedroom unit or even a freehold property. Today, the value of those freehold homes has far outpaced condos.
This experience taught me that when purchasing a property, thinking about how it will grow in value over time is just as important as the immediate financial commitment.
Why Adding Value Matters
One of the most important lessons I’ve learned is the concept of "adding value." Whether you’re buying a freehold home or a condo, consider how you can improve or enhance the property. For example:
- Freehold Homes: Can you convert it into a duplex or add a secondary suite?
- Condos: Does the unit have features like parking, a den, or an extra bedroom that make it more appealing to future buyers?
Strategic Buying in Toronto’s Market
The Toronto real estate market is competitive, but opportunities still exist. With the market cooling slightly compared to its peak three years ago, buyers now have access to properties that were previously out of reach.
The key is to focus on properties that offer both immediate livability and long-term potential. For instance, a condo with a den and parking may cost slightly more today, but it could provide significant benefits when you’re ready to sell. Similarly, freehold homes that need minor cosmetic upgrades—like fresh paint or new lighting—can yield incredible returns for relatively small investments.
The Importance of Climbing the Ladder
It took me 10 years to purchase my first freehold property in Toronto. Along the way, I invested in properties that allowed me to build equity and take incremental steps toward my dream home. One of the biggest mistakes new buyers make is trying to hit a home run with their first property. Instead, think of it as a series of steps:
- Start with a condo or smaller property within your budget.
- Add value or improve the property.
- Leverage the equity you’ve built to move up to the next level.
This "single and double" approach, much like in baseball, is often more sustainable and rewarding than swinging for the fences right away.
What Buyers Should Look For
If you’re preparing to purchase your first property, here are some practical tips:
- Location: Look for neighborhoods with growth potential. Areas just outside prime locations often offer better value while still being accessible.
- Condition: Don’t shy away from properties that need cosmetic updates. Paint, flooring, and lighting can go a long way in transforming a space.
- Features: Prioritize properties with value-adding features like extra bedrooms, parking, or potential for a secondary suite.
Looking Ahead to 2025
As we approach 2025, the Toronto real estate market continues to present opportunities for strategic buyers. With prices stabilizing, now is an excellent time to explore options that fit your financial goals and future plans.
Remember, buying real estate is not just about finding a home for today. It’s about positioning yourself for tomorrow. By thinking strategically, you can avoid the mistakes I made and set yourself up for long-term success on the property ladder.
