Toronto Residential Real Estate

by Lea Barclay
(Toronto, Ontario Canada)

It takes careful planning before you invest in Toronto residential real estate.

Decreased consumer confidence in the real estate market has created a decline in home sales nationwide, however the Greater Toronto Area has made a comeback from the economic downturn.

The Toronto Board of Realtors announced a 19% increase in the purchase of resale homes from November 2007 to November 2008, and a 3% increase in the purchase of new houses from May 2008 to May 2009, displaying evidence of rising consumer confidence in the investment of funds in Toronto residential real estate. With indications of economic stability in the near future, many people are looking at investing in both homes and condominiums in the Greater Toronto Area.

Closing costs are added items which must be considered when determining the cost of a home. Appraisals, inspections, lender's fees, Realtor fees, and documentation fees are but a few of the expenses associated with the purchase of a home.

Taxes, like the Harmonized Sales Tax which is scheduled to take effect in July 2010, are causing some trepidation among many in the real estate industry in Toronto.

The HST was created to meld the GST, currently at 5%, with the PST, currently at 8%, and will be tacked on to not only to the purchase price of new homes, but also the closing costs of both new and resale properties. This will nullify the current exemption from the PST for new property purchases.

The Ministry of Revenue has put forth new information regarding the HST, specifically addressing a proposed rebate of 75% of the provincial portion of the new unified sales tax, up to a limit of $24,000. The rebate would be procurable in the same manner in which the present GST rebate is administered for the sale of new properties, with the homeowner filing an application directly to the Canada Revenue Agency, provided a credit was not given at the time of the sale.


After the costs have been calculated, the budget has been planned, and a desired purchase price has been settled on, a determination should be made as to the type of property that the buyer is looking for. There are pros and cons to both single family homes and condos or townhomes, and the good and bad of each must be considered in order to make an educated decision before a purchase is made.

First, the buyer should consider value for money. Usually, a home will have larger equity in the long term, and a higher resale price. Lease rates are generally higher for houses than condos. Condominiums usually charge fees that go to an association. As a result, houses may translate into a greater return on investment as opposed to condos.

Also, the purchaser should think about the area he or she wishes to live.
A purchaser looking for property in downtown Toronto may be hard pressed to find a home that matches his or her requirements, whereas condos are more plentiful.

Lastly, there is the amount of time that the purchaser wants to spend on maintenance of the property. In a home, the maintenance and improvements are the sole responsibility of the owner. In a condominium, the association takes care of most, if not all, of the property repairs.

There are a lot of possibilities in the Toronto residential real estate market, and, despite the innate issues in the buying process, purchasers that plan ahead can feel good about their decision.