People are always on the move. Renters have the opportunity to move wherever they want and benefit from a great degree of flexibility. On the other hand, buyers can take pride in home-ownership and may even make some money in the long run, as the property value appreciates. The market is quickly recovering as the coronavirus situation slows down a little, but there is still a long way to go.
All in all, Toronto is a vibrant city with opportunities for everyone. There are many neighborhoods where renting could be better than buying. But on the other hand, there are also places where buying could be the better option. Sure, if you are certain about one option or another, these neighborhoods will not make too much of a difference. But then, where do you need to go if you want to rent and what about buying?
First, where should you buy in Toronto?
At the moment, there are more opportunities for renters than buyers. However, there are a few areas where buying is still the more profitable option than renting. Two of Toronto’s neighborhoods stand out in the crowd, though – E03 and E10. E03 covers places like the Danforth Village or East York. On the other hand, E10 covers Centennial Scarborough and West Hill. People interested in these areas will find better value for money should they purchase a home. E11 – consisting of Rouge and Malyern – is not to be overlooked either.
The west side of Toronto is worth a bit of attention, too, as there are lots of good choices there as well. For example, W05 – with York University Heights and Black Creek – is excellent for buyers who want to invest, while W10 – with West Humber-Claireville and Rexdale-Kipling – is suitable for buyers who want to move there or invest.
Where to rent condos in Toronto?
The renting market in Toronto is not to be ignored either. Generally speaking, buying a property means you own it. Renting is just money down the drain. But then, renting is flexible, which is excellent if you need to move or are not ready to settle down yet. On another note, renting is also a better choice than buying in the central part of Toronto, where prices are way higher than average.
For instance, whether you are interested in condos in Leslieville or condos in Regent Park (C08), buying is not the most cost-efficient option. Instead, renting might be a better idea. Most of the C08 neighborhood is in this situation, including St. James Town or Corktown.
At the same time, you are better off renting condos in Yorkville than buying. The whole C02 neighborhood – also including Summerhill and Annex – is suitable for renting rather than buying. The same goes for the C12 neighborhood – Hoggs Hollow, Bridle Path, and York Mills. C09 is somewhere in the middle, but most analyses would indicate renting over buying – areas like Moore Park or Rosedale. In C09, for instance, the average buying price would equal about 35 years of rent.
As a short conclusion, your primary necessities should dictate the final decision. If you want a specific area and you need to buy, these facts will not necessarily help. However, suppose you have a bit of flexibility and drive (so you can get anywhere, anytime, without depending on public transportation). In that case, it does pay off knowing whether it is better to buy or to rent.
There are some good choices out there for both renters and buyers, and your financial situation and goals dictate the final decision.