Signs That a Toronto Property (and Neighbourhood) Will Increase in Value

Purchasing a property is a great way to add to your investment portfolio, and it is important to do research beforehand with your agent to ensure you are investing in the highest quality property to receive the highest return on investment (ROI) when the time comes.

Purchasing a property is a great way to add to your investment portfolio, and it is important to do research beforehand with your agent to ensure you are investing in the highest quality property to receive the highest return on investment (ROI) when the time comes.

Appreciation refers to the increase in value of a property over time and is the reason why people purchase property as an asset. There are a few signs that you and your real estate agent can utilize when searching for the perfect home, to ensure your property will increase in value.

Developing Neighborhood

Improvement in transportation lines, upgraded sidewalks, new unique businesses and home improvement stores, low crime rates and new amenities can all be signs that an area is expanding and expecting an influx of people. Many suburban towns are experiencing this now as cities rise to capacity and more people are looking for larger homes that support a work-from-home lifestyle. Purchasing a home before these small hints become more visible is a sure way to be confident that your property will rise considerably in value. 

Renovations Are a Possibility

An active way to increase the value of a property is to renovate, upgrade or extend the current home. Purchasing a home that leaves room for this possibility will make the ROI worth it! Though, you want to be wary about the type of renovation. If the home has structural issues, this could lead to it losing value over time. Ensure you do the proper research before signing on any home!

Economic Factors

Economic factors can strongly influence the housing market by increasing or decreasing the demand and perception of value. When there is a high employment rate due to a strong job market, more people have the financial capability to invest their money into properties. Also, a strong job market can influence population growth (and vice versa) which also directly affects the housing market. Having a team behind you with the abilities to study and predict factors like these can help you to better plan when and where you want to invest.

Taking these small but helpful signs into consideration, you will be better informed when you decide to invest in a property. Though reselling might not be the first thing on your mind, it is always better to look towards the future and make sound predictions when it comes to such a big life decision!

Contact us directly at 647-298-1437 to start the discussion about purchasing your next luxury home.