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5 Resolutions for Buying a Toronto Loft in 2015

5 Resolutions for Buying a Toronto Loft in 2015

The Tip Top lofts pictured here increased a dramatic 18.5% in 2014 over the previous year.

As we approach the New Year, it’s a good time for prospectivebuyers of Toronto lofts to make some real estate resolutions. Lofts for sale in Toronto continue to be low in stock in comparison to demand and frankly, they just aren’t making many more as it’s cheaper and more profitable to construct a new build condo or soft loft than to convert an historic building.

As such, it’s important to arm yourself with the facts upfront so that you can make a swift and suitable purchasing decision. Here are our top loft resolutions to ensure your buying process is merry and bright.

#1: I Will Not be Paralyzed into Inaction by Naysayers

Because it’s only going to get harder to get a foot on the property ladder if you wait. The fact is that the average prices of Toronto lofts for sale are increasing higher and faster than buyers’ annual earnings. And the market for lofts in Toronto is showing no signs of slowing down.

But as a buyer, you may have concerns about the market. Understandably so. We’ve all heard a lot of mixed messages in the media about the sustainability of property values in Toronto and a potential condo bust. You can read our thoughts on the  on our condos.ca sister site.

#2: I Will Do the Math and Stay Objective. I Won’t Get Dazzled by Design.

Even older Toronto lofts in popular neighbourhoods are seeing dramatic year-over-year value increases. The Sorauren Lofts pictured here increased by 19.6% in 2013.

Our biggest cautionary advice for buyers of Toronto lofts? Watch your square footage prices and maintenance fees. Don’t just flock to the shiny new thing. This is particularly true for new build soft lofts as . And so even though most authentic hard lofts have a higher price tag than nearby condos or soft lofts, they may end up being better value for what you’re getting. But it’s not a black and white issue.

The Broadview Lofts have increased in value by 12.3% in 2014 over 2013 and the size of the building means that there are lots of floor plan options. Choose one that has some room for growth if you can swing it.

As stated above, you need to be clear about your maximum budget and watch your monthly expenses. However, most buyers look within a price range that has at least a $50,000 leniency in either direction.

When it comes to buying a loft in Toronto, our advice is to stretch to the max of your budget providing you stay within the debt to income ratio outlined above. The reason for this is that all too often we see clients selling as quickly as twelve or eighteen months after purchase because the space isn’t large enough for them.

Although lofts for sale in Toronto demand a premium price and that trend is unlikely to reverse, it’s difficult for sellers to break even let alone generate a profit when selling too quickly. You have to factor in fees, land transfer tax, closing and moving costs. As such, it’s wise, within the limits of pragmatism of course, to buy as much square footage space as you can comfortably afford in a neighbourhood that you can see yourself growing into.

Buying a Toronto Loft in 2015

When comparing lofts for sale in Toronto this year, spend the time to really understand the numbers. Look at current property values and historical trends for the loft building that you’re considering, compare mortgage rates and figure out what you can comfortably afford to carry. There’s no point in buying a swank loft if you’re too stressed by debt to enjoy it. On the flipside, ensure that you’re buying something that will keep you happy for the next two to three years at a minimum.

For buyers that make informed purchasing decisions, Toronto lofts will continue to be excellent investments in 2015 as well as great, unique spaces to call home.

Guest Contributor

James Harrison, President of mortgages.ca, is an award-winning mortgage professional and one of the top mortgage brokers in Canada. His VIP status with all major Canadian lenders means that he’s able to leverage the best terms and rates for his customers. You can learn more at