More and more people are thinking investment-oriented when it comes to their home purchase. With the resale market as hot as it is, sometimes it’s difficult to figure out what makes a good investment. Here are a few tips:
• Location. The realtor you’re working with — ideally one who comes highly recommended by a trustworthy friend even after the sale — should be able to educate you on the quality of your location. While the GTA is hot in general, you’d be wrong to assume that every neighbourhood is on a level playing field. Location is first and foremost when it comes to addressing the resale value of the resale home you’re interested in. That includes proximity to schools, highways and the general quality of the neighbourhood.
• Size. There are a few general rules to follow, applicable to just about all neighbourhoods in the GTA, outside of downtown Toronto (where the rules can change). If you’re looking at four bedrooms, you should also go for a double garage. If you’re looking at three bedrooms, you should avoid a double garage. You get what you pay for, whether it’s an extra bedroom or garage space. However, demographically, if a family is considering three bedrooms they likely need only one garage space. Likewise, a family needing four bedrooms will require, or at least prefer, two garage spaces.
There are also certain rules that result from the very structure of Toronto’s MLS system. If you’re looking at a home that’s just under 2,000 sq. ft. (say 1,965 sq. ft.), you’d do better to go for something less expensive, closer to 1,700 sq. ft. or slightly more expensive to push you over the 2,000-sq.-ft. mark. Usually 2,000 sq. ft. is a benchmark figure in the MLS searches that places you in a different bracket/psychological price range. Similar benchmarks exist for 2,500 and 3,000 sq. ft., increasing the number of bathrooms, a separate entrance, segregated family room, and of course finished basements.
• Kitchens and Bathrooms: These are the two main areas where the value in the upgrades can be recaptured best. When a family purchases a home, it is, more often than not, the lady of the house who makes the final decision — and the kitchen (in terms of class) and bathrooms (in terms of cleanliness) are what catch her eye.
Granite countertops, marble flooring, expensive showers and upgraded cabinetry all attract a good return on your investment.
When looking for a resale home, there are good things to pay for and bad things. These are only a few of the general rules.
For more information feel free to contact me at amitp@rogers.com. Every home is built with wood, bricks, cement, and drywall, but what’s contained within those walls determines a good purchase from a great one.
