If you have $40-60k available to invest, yes you are priced out of Toronto.
Why? Entry level price for downtown condos is now approximately $500k which means you need $80-100k to put down as deposits on a pre-construction condo downtown.
1) Can’t I just find something pre-construction downtown for under $500k?
2) Can’t I just buy something in the suburbs for under $500k
3) Can’t I just buy a resale condo downtown for under $500k?
PART 2: WHAT YOU SHOULD DO, OPTION 1: BUY OUTSIDE OF THE GTA
If you can’t afford to buy downtown, you should first look at other markets.
Focus on markets with strong job growth, major transit investments, and very low vacancy rates.
The 3 markets we recommend investors to look at now are Ottawa, Kitchener, Hamilton.
1) Too far away! I need to invest close to where I live
2) Slow growth! Don’t these other markets have slow growth compared to Toronto?
3) Hard to find tenants! Isn’t it hard to get renters in these small markets?
PART 3: WHAT YOU SHOULD DO, OPTION 2: DOUBLE YOUR BUYING POWER WITH A PARTNER
If you can’t afford to buy downtown on your own, double your buying power by teaming up with another investor and buy something together.
Consider buying larger units in the $700k+ price range.
1) I can’t afford to buy THAT property in Toronto, can I?
2) Who can I trust to partner with?
3) Bigger units are bad for investment?