I'm visiting an old bungalow for sale tomorrow!
And yes, that is the stuff that excites me... For real.
In fact, few things thrill me more than a Toronto bungalow with a for sale sign. I'd likely buy them all up if I had the means. So for a girl who easily turns her head for any old bungalow, this one is all the more exciting: detached, in a desirable, centrally located neighbourhood, on a largish lot (21' x 126'), along with a garage with back lane access.
Bungalows are one of my favourite forms of property investments mainly because they embody so many options. I can't think of another property type in the city that offers so many possibilities for both the short and long term in as manageable a package. Here are my top 5 reasons why a bungalow can be the best kind of property purchase that Toronto has to offer:
After location, the second largest determinant of price in this town is size. With bungalows being the smallest possible property option next to condos, they are in essence, a form of 'affordable' housing. (I'm well aware that 'affordable' is a relative term - hence the air quotes:-). Still, they represent the most affordable way to enter the property ladder in the neighbourhood you desire. They make what wouldn't even be an option for some into a veritable possibility. I appreciate that sort of thing.
If it is one of the rare bungalows in a neighbourhood next to 2, 3 even 4 storey houses, it holds value beyond its lot line. Just as the worst house on the best street is brought up in value with its proximity to more expensive properties, so is a bungalow simply by being smaller than the rest. It doesn't have to be the worst property on the street, it can be the smallest one to reap the same proximity rewards.
Options are good. The more the better. And bungalows offer just that, whether living in, renting out, or adding to. For example, option a) Purchase, live in, get creative with editing and storage and enjoy living in the neighbourhood you couldn't otherwise afford. Option b) Purchase, live in for a time, let property appreciation and mortgage payments work their magic in creating greater equity for you, then top up. Option c) Rent out, with relatively little down, you are now a real estate investor with high rent in a great location, with straight forward single unit tenancy, for little more than lot value. Option d) by spending less to live in the location you desire, you will have more money to build and customize the house you really want.
A bungalow's development potential is real and assured. Topping up with a renovation adds immediate value as does tearing down for a new build. Adding size to a property makes much more money sense in this market than adding quality to an existing shell, since size has much larger impact on value. Size can be counted in terms of beds, baths and square footage, so a large increase in value can be much more easily rationalized and counted on.
5. THE OUT
The out strategy for a bungalow is brilliant too, because of the variety of buyers it appeals to for entirely different reasons. They appeal to first time buyers for affordability, investors for ease, builders and developers for potential, and move up buyers seeking the neighbourhood / custom build combo. Many buyer pools ensures a very strong resale, making this investment type more rock solid than you may at first think.
If this has you contemplating or curious about the power of a single storey structure, feel free to reach out and be in touch...
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