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Paul Anand.

Toronto Income Property Newsletter : April 2012

This month I would like to welcome back Jay Snider to Plex Realty.  Jay and I have been working together since way back in the CD manufacturing days, so for quite some time.  I look forward to working a lot with Jay on the listing side as he is a consummate professional and a great friend.

I’d like to wish all of you a Happy Easter. Hopefully there’s more 20 degree weather coming again.


The market? Still crazy. After the month I’ve had … well let’s just say if I wasn’t grey up top before, I sure would be now.  Thanks to all my current clients for hanging in there with me.


The Leafs are out again (what else is new) so that can only mean one thing. Soccer time!  TFC Season six is now underway.  Can anyone say “CONCACAF champions”? 

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One of the most common concerns that I experience in the field is the question of legal vs. non-legal apartments in residential income properties. The issue usually pertains to basement apartments in duplexes but it also comes into play when there are four, five or more apartments in the property.  It is a very tricky subject as I have to deal with the practical realities of the marketplace, namely that most accessory suites are not legal, yet they continue to be rented without issue or trouble from the City. The fact is there is a lot of misinformation floating around out there and most landlords have been renting out “illegal” apartments for years.  By and large, if a single-family has been converted to units, it is not likely that all the suites will meet the eligibility requirements to be completely legal – especially if it doesn’t meet the parking specifications.  If a property was originally “purpose-built” as a duplex, triplex or fourplex, then the suites are usually all legal.  That is why you will often see Sellers and their agents make no warranties or representations with respect to the zoning, use or legality of the self-contained units when an income property changes hand.

Most investors’ primary concern is whether you can finance and insure a property with multiple units.  Whether they are “legal” or not is secondary. All suites have to meet fire code for insurance purposes.  Also, having a retrofit certificate does not automatically make your units legal either.  In a city like Toronto, where the apartment vacancy rate is low and real estate values are high, many people rely on the rental income from a basement apartment to give them the edge they need to own a home. But what is a “legal” apartment? If the suites are not “legal”, how can it be made “legal”? In the process of legalizing the apartment, will I be inviting ‘trouble’? What if the City prescribes improvements that are prohibitively expensive? What if the City decides that I can’t have an apartment? What does that mean for you and your existing tenants?
The following information comes mostly courtesy of Carson Dunlop Home Inspectors. They have done a nice job of trying to sort through all the misconceptions and clearly lay out what it takes for all of your apartments to be legal.


Homeowners with a basement apartment would like to find out what it would take to ‘legalize’ the apartment, but they want to find this out without tipping off the authorities. The only way to know for sure what will be required is to have inspections done by the appropriate authorities.

‘Legal’ involves five separate issues including –


Do the local bylaws permit you to have a basement apartment?

·         Does the apartment comply with the fire code?
·         Does the apartment comply with basic building code requirements?
·         Does the apartment comply with basic electrical safety requirements?
·         Has the apartment been ‘registered’?

The Building Code prescribes minimum requirements for the construction of buildings. For the most part, the Building Code is a code that applies only the day the house was built. The code changes over the years, but we don’t have to keep changing our houses to comply with the code. The code does not apply ‘retroactively’.  The Fire Code is a subset of the Building Code. It prescribes construction and safety issues as they relate to how the building is required to perform should it catch fire. A significant distinction with the fire code is that it can apply retroactively. Since the Fire Code applies retroactively, we can see where the phrase “basement retrofit” comes from. A new Fire Code was developed that applies to basement apartments. The code applies retroactively, so all basement apartments whether existing or new must comply with the new Fire Code. All owners of homes with basement apartments were given a period of time to upgrade their homes to comply with the new Fire Code. This ‘grace period’ has long since passed. All basement apartments have to be inspected to verify that they are in compliance. Once this has been verified and any improvements completed, the apartment is given a ‘certificate of compliance’.

With basement apartments prior to 1993, there was little to worry about. After 1993, a permit was required to change a home from single family to multi-family. In 1994, the NDP government in Ontario said that we could ignore local bylaws that prohibited second dwelling units in houses if certain conditions were met. The province set new Fire Code rules for basement apartments. A deadline was established for all existing basement apartments to upgrade to the new fire code. Upgrading to comply with the new fire code is called a “retrofit”. The owners were allowed to apply for an extension for up to two years past the deadline if they had financial or logistical obstacles. Even with the extension, the deadlines have long since passed.  In 1995, the provincial Conservative government told municipalities that they could enforce their bylaws regarding basement apartments. A grand-fathering clause says that apartments existing before November 1995 do not have to meet local bylaws.

If you are thinking of adding a basement or another accessory apartment here is the procedure –

·         Check the Zoning Bylaw at City Hall Buildings Division to find out if basement apartments are allowed.

·         You would then apply for a building permit. Keep in mind that you will have to comply with today’s building codes.

If you currently own an income property with existing suites and would like to find out if they are legal. The first step is to check with Municipal Property Standards or the Fire Department for a Certificate of Compliance. If there is one, then you are good. If the unit is not registered, you need to verify that zoning bylaws permit an additional apartment. In most cases they do. The next step is to have the fire department inspect the home. They will verify compliance with the fire code. This is the most daunting part of the process because any deficiencies will have to be corrected by order of the fire marshal.  The next step is to have the Electrical Safety Authority (which used to be called Ontario Hydro Inspection Department) inspect the electrical system. Once again, you will be required to make any improvements that are prescribed. If the apartment unit passes the inspections, the unit can be registered with Municipal (Property) Standards.

There are four key areas regarding fire code compliance. They all have to do with the safety of the occupants within the suites.

1. Fire Containment

The goal is to contain the fire in the unit that the fire started, long enough to get all of the occupants out of the house. This means that any walls, floors, ceilings and doors between units should control the fire for at least a few minutes. These components are given ‘ratings’ of how long they will survive a direct fire before burning through. A 30 minute rating means that the component will control the fire for at least 30 minutes.

The typical requirement is a 30 minute separation between the units. Drywall and plaster are acceptable. Suspended (T-bar type) ceilings are not. The ceiling must be continuous. For example, this means that you can’t have exposed joists in the furnace room – this area has to be drywalled or plastered as well.  Doors should be solid wood or metal – at least 1¾ inch thick.

2. Means of Egress – Escaping the home

The goal is to allow the occupants to get out of the house if there is a fire. There are two common situations; either each unit has its own exit, or there is a common exit. If each unit has its own exit, you are all set. If the units share an exit, it is more complicated.

A common exit is allowed if it is ‘fire separated’ from both of the units with a 30 minute rating. If the common exit is not appropriately fire separated, you can still use this common exit as long as there is a second exit from each dwelling unit and the fire alarms are interconnected (if one alarms, the others will alarm as well). Here is an example: There is a common exit area but the common area does not have a 30 minute fire separation between both of the units. If there is an ‘acceptable’ window for an escape route and the smoke alarms are interconnected, we are all set.  The window sill must be within 3 feet of grade. We don’t want people jumping and breaking a leg. The smallest dimension is 18 inches. The opening is at least 600 square inches (30 inches by 20 inches for example) If there is a window well on a basement window, it must extend 3 feet out from the house wall, to allow room to crawl out.

3. Fire detection

All units must have smoke alarms. The owner of the property is responsible for ensuring that there are smoke alarms and that they are maintained. The smoke alarms do not have to be interconnected unless the fire separation to the common exit area does not have a 30 minute rating.  It must have at least a 15 minute rating. A carbon monoxide detector (CO detector) may be required by the city.

4. Electrical Safety

An electrical inspection by the Electrical Safety Authority is required. The Electrical Safety Authority used to be called Ontario Hydro Inspection Department. All deficiencies must be addressed.

There are a few more rules that your apartment must meet. All bathrooms need either a window or an exhaust fan. If there is a parking spot for one of the units, there must also be a parking spot for all of the other units. This is where most existing properties fall short.  The minimum ceiling height is 6 feet 5 inches. The entrance door size must be at least 32 inches by 78 inches

Two inspections are required: fire code inspection and electrical safety inspection. Once the inspections are done, you will be required to make the prescribed improvements. Improvements may be minor, but can also get quite costly. There is lots of room for the inspectors to be more or less ‘strict’. In municipalities that encourage basement apartments, the inspection may be less strict. In municipalities that discourage basement apartments, the inspection may be stricter.

Inspections for fire code compliance cost between $120 and $300.
Inspections for electrical safety cost $72.

Here are a few useful phone numbers:

The Second Suites kit from City of Toronto is a useful reference. Contact Shelter, Housing and Support at 416-397-4502.

Municipal (Property) Standards:

East York 416-397-4591
Etobicoke 416-394-2535
North York 416-395-7000
Scarborough 416-396-7071
Toronto 416-338-0338
York 416-394-2535

Fire Services (Fire Prevention) www.city.toronto.on.ca/fire/prevention.htm

East York 416-396-3750
Etobicoke 416-394-8588
North York 416-395-7271
Scarborough 416-396-7644
Toronto 416-392-0150
York 416-394-2787

Toronto Income Property Newsletter- March 2012

This month I will address the fervor of the Toronto income property market over the past few weeks.  There was some speculation that with more supply coming online as we approach the spring market the current hot demand would cool a little.  Quite simply this hasn’t been the case.  I haven’t seen any quality duplexes or triplexes in the downtown core sit for more than a few days.   Most get snapped up quite quickly – more times than not for over the asking price.  Multiple offers continue to be the norm in top Toronto neighbourhoods. I will talk about what this all means for all buyers and sellers currently in the market.

For all of you travelling for March break, be safe.  And I hope you all have a great St. Patrick’s Day.  Have a pint for me! 

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YOU'RE ABOUT TO GET BURNED. This is what the cover of last week's Macleans magazine boldly states. There have been some very strong arguments lately that the Canadian real estate market is headed for a big crash, just like in the U.S. three years ago. They point out how much of Canada's economy has come to rely on the country's housing boom - and how much consumers have been digging themselves into debt just to keep it going. The average Canadian home now costs five times the average income, well above what many economists consider affordable and sustainable. There has also been a lot of cheap credit available out there for homebuyers. In Toronto, there is no question that there have been some very sharp increases in prices over the past couple of years.

I have been saying up until now that investment properties are likely to hold their value despite the strong sellers' market of late. However, I must admit that I have seen a few really crazy sales over the past few weeks. There was a house at Pape & Danforth that traded for 1.3M. I have seen some places going for upwards of $250K more than the asking price. In many cases, the investment value has all but been thrown out the window. Have a look at some of the recent income property sales for February on the Plex website. Some just seem downright scary.

I don't know folks. Does anybody really? I just can't see this current vociferous demand lasting forever. It doesn't make sense to me that 3 out of 4 houses will automatically trade for $50K to $100K over asking, no matter what the list price may be. I don't like to use words "bubble" or "correction" (I've only known price increases in the past 12 years as an agent), but it seems like prices are getting a little bit out of control. There will be more inventory in the next few months as there always is each Spring so presumably that will feed a good portion of the current high demand. If it doesn’t stop and the prices continue to go on like this, does this mean that income property buyers need to stay out of the market? Any of my clients that have bought in the past couple of years have likely seen their properties increase in value, even though at the time we thought that we were likely buying at the top of the market.  Secondly, if you are in for the long term, then I really don’t have a great concern for what might seem like an overpayment today.  Just don’t disregard your spreadsheets.  The numbers never lie. If your property breaks even (or better) and achieves a decent cap rate, then as I have said before it is always a good time to buy an income property.  This is even more so the case for owner occupiers.  I have never found it easy to time the market, but I do know that if you stick to the fundamentals, you will be fine regardless of external market conditions.

Toronto Income Property Newsletter: February 2012

A few postings ago, I wrote about being patient if you are looking to buy an investment property in Central Toronto.  I had no idea how true this would be for the start of this New Year. Demand is still greatly outpacing the current supply, and some of the recent sale prices have defied logic.  Take a moment to check out the “Sold Income Properties” on the Plex homepage to see how the market has been performing in your neighbourhood.  If you would like to have more detailed sales info on a specific area of the city sent to you, please send me an e-mail.

I’d like to wish all of you a Happy Valentine’s Day and if you are an NFL fan, all the best for a great Super Bowl party.

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The income property market in Toronto has indeed started off this year with a bang. From everything that I have seen over the past three weeks, 2012 is looking a lot like last year – high prices, multiple offers and a lot of overall action. There’s no doubt in my mind that the market is still favouring sellers and it will take longer for most buyers to find quality plexes that make fiscal sense.  We do expect more inventory to come on-line in the next few weeks, but the lack of suitable properties for January has been very frustrating.

Interest rates continue to be at all-time lows and it doesn’t seem like they are about to go up any time soon.  When you can lock in for four years at less than 3%, that’s going to help affordability and fuel a strong demand.  I also still believe that if the market cools down as many experts figure will happen, the prices that we have seen over the past couple of years will still hold.  I do not anticipate a reduction in the prices of plexes in prime locations.

One in six Canadian homeowners and investors who responded to a recent study said they planned on investing in property in the next two years.  The study, commissioned by Re/Max, found that single-home purchases were the most popular investment, followed by multi-unit buildings, condominiums and townhouses. Of those who planned to invest in real estate, close to 30 per cent already owned a home and 43 per cent were under age 40.  Michael Polzler, executive vice-president of Re/Max Ontario – Atlantic Canada Inc., once said Canadians are by nature conservative investors and like the predictable returns real estate offers, even if they might be a better bang for their buck in equity investments. “It has an allure,” Polzler said.  “You can write off your expenses and you know what you have.”

Carl Gomez, an economist with Toronto-Dominion Bank, offers an opposite view. He states there has been a “big rush to real estate” in recent years, thanks to rising prices, low interest rates and poor returns in equity markets, but he is not convinced that trend will hold indefinitely.  “People go where the returns are,” he said.  “The tide might be turning.”  If the tide does in fact start to turn, I’m sure that we on the investment side of the Toronto market will see the signs well in advance.

One factor that continues to push sales of income properties is that we have a fantastic (read low) vacancy rate. In my opinion, this is something that is not likely going to change for some time.  Some people think that there are tons of empty apartments out there, thus making investment properties an unsure bet. This is simply not the case – at least, not in the core of the city.  You may not get a crush of renters in December or January, but once the snow clears, there are always renters out there.

The vacancy rate in the fall of 2010 was around 1.8%. The Toronto Shelter, Support and Housing Administration published that 579,010 households in Toronto are rentals. I had a client call me last month looking to rent a two bedroom and wanted to spend around $1500 a month.  I couldn’t find anything on MLS or on www.viewit.ca so I called a few clients who I knew had multi-unit buildings.  No one had any vacant units.  When I show income properties to clients we do see vacant suites.  In many cases though, the owner chooses not to rent it out, in case the buyer would like that suite. It’s also awkward to tell a new tenant that the building is for sale – it sometimes makes the renters feel nervous.

Some analysts see downward pressure on rents should the market level off.  “The volume of incentives has softened a bit and landlords are pulling some of them off the table, such as free rent, free parking, or renovations.  This is good news for real estate investors.” quotes a CMHC source.

Average rents in Toronto held steady between 2010 and 2011 and are virtually unchanged since the late 2000s, says a report by Clayton Research Associates Ltd.  Aggressive recruiting of tenants helped fill vacant units.  Even better times may be ahead for landlords, because of continuing strong immigration and a widening gap between renting and owning. “Overall vacancy rates will decline over the medium term,” the report concludes, “thereby allowing landlords to pass rent increases through more easily in the future.”  Interestingly enough, rental rates haven’t gone up that much.  A 2-bedroom apartment rents at an average of 1395.00 per month and this number has by and large been the same for a few years now.

Take a look at the following vacancy rates in this chart provided by CHMC.

Private Apartment Vacancy Rates (%)
	2007	2008	2009	2010
Barrie	3.2%	3.5%	3.8%	3.4%
Brantford	2.9	2.4	3.3	3.7
Guelph	1.9	2.3	4.1	3.4
Hamilton	3.5	3.2	4.0	3.7
Kingston	3.2	1.3	1.3	1.0
Kitchener	2.7	1.8	3.3	2.6
London	3.6	3.9	5.0	5.0
Niagara Region	4.0	4.3	4.4	4.4
Oshawa	3.7	4.2	4.2	3.0
Ottawa	2.3	1.4	1.5	1.6
Peterborough	2.8	2.4	6.0	4.1
Sudbury	0.6	0.7	2.9	3.0
Thunder Bay	3.8	2.2	2.3	2.2
Toronto	3.2	2.0	3.1	2.1
Windsor	12.8	14.6	13.0	10.9

It is interesting to see how Toronto compares to other Ontario towns.  Clearly, while some cities have seen the vacancy rate increase over several years, in Toronto that hasn’t been the case.

Toronto Income Property Newsletter - January 2012

Happy New Year everyone! I’d like to personally wish you and your family all the best.  May all your hopes and dreams come true in 2012 and may you have a truly fun and memorable year.  I look forward to seeing many of you in the upcoming months.  I will continue to be your eyes and ears for the residential income property market in the Toronto downtown core.  As always, if any of you have any landlord or income property market questions, please feel free to shoot me an e-mail at any time.

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 As is customary at this time of year, I’d like to look ahead to try get and get a fix on what we might expect over the next few months.  Many of you know that the real estate market in Central Toronto has been a very robust sellers’ market, characterized by multiple offers and prices reaching all-time high levels in top areas.  In fact, recently the Economist Magazine branded Canada one of the nine countries where “home prices are overvalued by about 25 per cent or more,” and among the four where prices are in line with those in the United States "at the peak of its bubble." This has many people concerned that real estate in Toronto is over-valued and that they should avoid the market.

Should this give those of you thinking about a real estate purchase in 2012 a real cause for concern?  I don’t really think so.  I don’t believe that we are in a traditional bubble and heading for a sudden crash.  While prices are still high, I still anticipate strong demand since interest rates are still quite low and we don’t have the same kind of subprime mortgage crisis as they do in the U.S.  Some thought that prices were starting to soften a little at the end of last year anyway, so perhaps there may be a little leveling off. I predict that the income property market in Toronto will look very similar to the past six months – the best properties will continue to be popular since they still make a lot of sense to own long term.  I still believe that if you can obtain real estate with 20% down and have your tenants completely cover all of your costs, then it makes sense to pursue if you can handle the responsibilities of being a landlord.

The duplex and triplex market will still see cap rates dip under 5% in the prime neighbourhoods, since the rental market continues to be very strong.  Being a landlord is still a very good way of acquiring passive income.  Prices will continue to be expensive in the downtown areas close to the subway stops. Overall prices dropping by 10 to 20 % seems like a real stretch to me, especially on income properties, so I just don’t see it happening. On the other hand, I don’t expect prices to go up too much more either.  Let’s see what the next six months bring.  Keep an eye on the resale condo market.  So long as that market is still moving along at top speed, then I think the income property market is safe. Keep checking back in with me and I will continue to update you with Toronto income property sales activity.

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I have found in my travels that there a good landlords and then there a great landlords.  Great landlords go that extra step to make sure that their tenants are comfortable and their live-in experience is as enjoyable as possible.

Once you have chosen a tenant and signed a lease, here are ten things that you should do as a landlord prior to renting out your suite:

1.    Make sure that the suite is clean and free of all debris. If need be, give the suite a fresh coat of paint. Ensure that all light fixtures are operational. It doesn’t hurt to leave a few extra light bulbs in the suite.

2.    Put together an inventory of all furniture and fittings, and make sure the tenant agrees and signs it before they move in.

3.    Leave instructions/manuals for all appliances that will be left at the property, including cookers, washing machines, fridges and freezers. Not only is this helpful for the tenant, it'll save you having to answer phone calls about how to turn the dishwasher on! "

4.    Make sure that everything meets fire code and that your extinguishers, carbon monoxide detectors and smoke alarms are all in good working order.

5.    Compile a list of emergency contact numbers for your tenant, including your own.  It is also wise to put together a trouble-shooting sheet so tenants know how to react in an emergency.

6.    Before a tenancy, take meter readings and transfer all utilities to the new tenant.

7.    Explain to your new tenant how to use any safety equipment, such as fire extinguishers and alarms, plus point out any fire doors or window locks and show the tenant how to work the burglar alarm, if you have one.  Also, show the tenant how to use the laundry machines (if necessary).

8.    For that added personal touch, put together a useful welcome pack for your tenant. This could include information such as how to use certain items and when the bins are collected etc. It usually gets the relationship between the landlord and tenant off to a great start and, unfortunately, not enough people do this.

9.    Establish good lines of communication with your tenants. Ensure that the tenant knows what is expected of them during the tenancy and make sure you know what they expect from you too.

1. If possible, introduce your tenants to everyone else in your building and the neighbours.  This will make everyone feel more comfortable and safer.

Toronto Income Property Newsletter - December 2011

Season’s Greetings everyone! I would like to wish you, your family and all your friends the warmest wishes for a safe and happy holiday season. I'm looking forward to taking some much needed down time over the upcoming break. For those of you who don't know, I built an audio recording studio in my basement this year, so I look forward to hanging out with some of my musician friends to make some noise. I'll be back in January with a detailed look back at the income property market in 2011 as well as predictions for what we can expect in 2012. Take care and all the best.

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As many of you who follow my postings are aware, the Toronto income property market has essentially been hot all year long. At a time when the overall economy is still suffering, unemployment in the US is at all time highs and Europe is on the brink of a financial collapse, it is quite paradoxical that our market continues to be so hot. Interest rates are low everywhere so that doesn't fully explain why the Toronto market has been so robust. I still believe that Toronto is a magnet for new immigrants and the lack of quality rental inventory has made the existing stock more desirable. I can verify first hand since I am in the field daily that there have been fewer duplexes and triplexes for sale over the past three months than I would have expected.

October existing home sales in the greater Toronto area market soared 17.5% from a year ago, the Toronto Real Estate Board says. The Toronto market numbers have been credited with boosting the national average price at a time when the Vancouver market has slowed. Jason Mercer, the Toronto Real Estate Board's senior manager of market analysis, says "seller's conditions" are in place throughout many parts of the GTA. "Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the city of Toronto and surrounding places," said Mr. Mercer.

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We all know about Riverdale, the Annex, Little Italy, Bloor West Village and all the other tier one rental neighbourhoods in central Toronto. But have you tried to buy a duplex or triplex in one of these areas lately? It is almost impossible to find anything decent in the $500K range. It is still even
tricky in the $600 range. If the rents in these areas don't increase proportionately to the sale prices (which they often don't) then as the prices increases the investment value decreases. It is ideal to buy something for under a half a million since these properties usually provide better bottom line returns.

So where are all the plexes for under $500K?

If you work hard and put yourself at the forefront of all buyers by staying on top of the market, you can still find properties in the $400K range, I will look at three areas that may be particularly interesting to the income property investor. I have mentioned these neighbourhoods before in past newsletters and I still believe very strongly in them. These are neighbourhoods that I have spent lots of time over the last few years getting to know better, surveying the rental market and their demographics.

These are areas to keep zero in on if you are looking to land between $350K & $500K.

i. Leslieville 

This is the area in between Carlaw and Coxwell, from the railway tracks just north of Gerrard down to Eastern Avenue. Leslieville is situated around three of the more popular east districts, namely the Beaches, the Danforth and Riverdale, which are all popular rental destinations. The Toronto Film Studios on Eastern will be transformed into retail in the future. Little India on Gerrard has become a very popular spot.  Given the proximity of Leslieville to downtown, the Gardiner & DVP and all of the amenities that the East side offers, many new owners have been renting out their properties. Leslieville is well served by the public transit system which operates buses and streetcars on Carlaw, Jones, Greenwood, Eastern as well as Gerrard and Queen Streets. Most of these bus routes link up with stations on the Bloor-Danforth subway line, which is of great benefit to renters.

ii. The Junction

The Junction Triangle located just northeast of the Annex is bounded on three sides by railway lines that enclose the entire neighbourhood in the shape of a triangle. The key boundaries are Dupont and Bloor to the north and south, and just west of Lansdowne over to Dundas Street West (which curves north by this point. The main streets are Perth, Symington, Wallace and Campbell. Like Leslieville, the Junction is ideally situated in between two very popular rental areas, namely the Annex and High Park. Most of the housing in the Junction has already been converted to two and three family dwellings - with numerous choices of inventory relative to other pockets of Toronto. I have seen new loft developments in the Junction as well as many new businesses opening up on Bloor Street West. Given that it's only ten minutes to downtown and it sits on the Bloor subway line, this has become one of the top areas for renters.

iii. Belgravia &  Dufferin/Eglinton

 This is the area just west of the Allen Expressway going north and south of Eglinton Avenue West up to Lawrence - the main artery being Marlee Avenue running north to south. The interesting characteristic of this area is that it is adjacent to some of the finest homes in Toronto to the east. The creation of the Forest Hill Lofts and adjoining condo town homes on Castlefield shows that the development has now moved over to the other side of the Allen. The proximity of the subway going up to Yorkdale and to downtown is quite attractive to renters. There are many income properties already in the area that can be purchased for lower prices than properties to the East. I have also seen custom homes starting to be built in this quadrant as well, suggesting the buyers are interested in moving further west heading towards Dufferin.  South of Eglinton, going east and west of Dufferin down to Rogers Rd. still offer relatively affordable prices.

For the real estate investor who is looking for a long-term situation and does not have an abundance of start-up capital to invest, these areas can provide quite a profitable solution. They have become more popular for renters many with new cafes and they are all fairly close to the downtown and midtown cores.