If you are a residential property investor looking to generate profits, or you are a lot owner looking to capitalize on your acquired land, townhouse developments by Odima Construction is a worthwhile investment for all parties to enjoy! Building a townhouse in Toronto is no small or easy task, so our licensed and insured contractors take diligent and careful consideration throughout. Odima Construction’s high-end home builders provide customers with one-on-one service, offering a uniquely customizable process, comprehensive design, and unparalleled craftsmanship. Contact us to begin new townhouse construction and become a beneficiary in Ontario’s real estate development sector today.
Benefits of Townhouse Development
There is a high demand for Toronto townhouses. The younger generations prefer the characteristics of the suburban community, combined with the out-and-about attitude of the city. Townhouses are convenient living spaces that provide a tight-knit community feel while living near a city.
First-time home buyers or young families looking for a property in between a classic suburban home and a city apartment are notable audiences attracted to the idea of living in a townhouse. This interest will be to the advantage of property investors and lot owners developing townhouses on their land.
New Townhouse Development vs. Existing Property Investment
There are several pros and cons to consider when deciding either to build a new townhouse in Toronto or invest in an existing property.
Both existing property investment and new townhouse development are worth investing in, but let’s look at some of the main advantages of each so you can make the best decision to generate profitable returns.
Pros of New Townhouse Development
Build to meet market demand: If townhouses are the type of property that is in demand in your area, then the home’s value is increased as well as the rental return, and this will also help find long-term tenants.
Can be constructed for multiple occupancies: Building a townhouse can accommodate multiple tenants allowing for future expansion. You will also be able to generate good cash flow by increasing your monthly rental income from more tenants.
Tax minimization: Many features such as the cost of fittings and indoor fixtures can be deducted from your taxable income. In addition, stamp duty typically will not be charged on the property value, but rather the land value, and this can result in significant savings. Speaking of great savings, while construction is underway, interest payments may also be tax deductible at your marginal income tax rate.
You can build equity instantly: By going back to your lender once everything is built and having the property revalued, if the townhouse’s valuation is raised from the estimate during the application process, then the property’s equity has increased.
Pros of Making an Existing Property Investment
Affordability: Typically, existing properties are less expensive than new ones, but this could vary based on the house type, the neighbourhood, and other variables.
Easy market comparison: Can compare existing properties to recently sold properties to determine their value.
Make room for negotiation: Buying an existing townhouse as opposed to building a new one means you will have negotiating power.
Potential for Adding Value: Your equity increases when owners make upgrades and repairs to the property, increasing its value, rentability, depreciation, and rental yield.
INVEST IN REAL ESTATE
Over the last years, building duplexes, triplexes, and multi-dwelling units have grown in popularity as an investment opportunity, that comes with greater cash flow, additional tax benefits for owners, potential owner-occupied arrangements, and less risk of full vacancy.
Why Choose Odima Construction
Odima Construction is the top-rated construction group servicing Toronto and parts of the GTA. We are Tarion-registered, licensed, and insured contractors who have been successfully renovating and building homes for years. If you are a lot owner looking to develop your land with townhouses, or in the case of residential property investors, you’re looking to capitalize on this growing market, Odima Construction is best suited for you.
By utilizing innovative strategies, powerful technologies, and cutting-edge modern design tools, we are able to deliver high-quality architecture and structures that will make the most of your land and investment. To learn more about townhouse developments on your valuable land equity, contact Odima Construction today!