After much noise that the Toronto Condo market was heading for a bust, the market continues to show steady improvement. Looking at the upcoming Toronto mayoral elections with the focus of the candidates being the improvement of the Toronto transit, there has been no better time to invest in properties in Toronto.
Well-informed investors are always on the lookout for good reasons to invest, and this may be one of the best reasons yet.
Studies show that property values of buildings close to the construction of subways increases between 5 -20%. Let’s look at the plans of one mayoral candidate, Olivia Chow, and how her transit plan could affect the future of the Toronto Condo Market.
Olivia Chow’s transit plans include immediately increasing the number of available buses by 10% in hopes of cutting down congestion. More importantly she plans to scrap the Scarborough underground subway system proposed by other candidates in favor of an above ground LRT system. The main selling points of Chow’s proposal are an additional four stops and the completion of the whole system 4 years earlier.
What does this mean for you the investor?
As I previously mentioned, the construction of new transit lines increases property value. Any new condominiums along the proposed transit lines in Scarborough will see a significant increase in value when the lines are completed. Since the construction of the LRT stations will most likely follow previous plans scrapped by Rob Ford after his election in 2010. You should keep an eye on any new developments close to the lines. You can look at the previously proposed LRT stops here.
As an investor, you are not only interested in the return on your investment but also on how quickly you can make gains. Olivia Chow’s plan to finish construction of the Scarborough LRT system by 2019 means that you can see an increase of anywhere between 5%-20% in addition to normal appreciation of new Scarborough Condos close to the proposed transit stations within 5 years.
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