It’s no secret that vacant land in Toronto is a scarce commodity. According to a report by economist Will Dunning, this has resulted in a supply shortage of 50,000 homes in the Metropolitan Toronto Area.
This lack of supply has had a dramatic impact on prices, as evidenced by property values, with the average detached home in the city valued at over $965,000 and consistently increasing value in surrounding areas (for example, the average 35 foot wide lot costs almost $270,000 in areas like Brampton and is fast approaching $400,000 in Markham).
With fewer options available, investors are turning their attention to the upmarket remodelling of existing properties, in a bid to make the kind of returns they would have traditionally realised from new build ventures.
And it’s not just savvy investors that are benefitting from this trend either…. Homeowners have also become aware that tearing down older homes, or renovating their existing property are viable strategies to deal with these market conditions.
Creating a luxury home from an existing one also has the potential to greatly increase their equity. With demand for luxury housing increasing exponentially year-on-year, it would appear to make sound economic sense to consider remodelling your existing property.
And for those who look to sell their home after remodelling, all the statistics point to the likelihood of a quick sale. According to an article by CBC News, Toronto has one of the fastest property sales turnarounds in the world, with the average property selling just 31 days after first being listed.
With the current trend for Toronto Metropolitan Area property prices set to increase again this year, and no sign of a slowdown on the horizon, it would seem that now is the perfect time to consider remodelling, extending or rebuilding.
If you have any questions about how RS Homes can assist you with your luxury remodelling plans and how you can create the perfect home or investment property, please get in touch today.