The smartest investors aren't always chasing numbers, they're not chasing a dream, they're investing with logical research and ample due diligence. Too many investors these days speak like an infomercial. They've attended too many seminars and read too many books. It's not all about the numbers. You need to be creative, shake the tree a bit and do the dirty work. Number chasers typically run away from Toronto chasing superior returns outside the core without applying the proper consideration to factors such as appreciation and quality of life. It's about where the real upside is about identifying which micro-pockets are undervalued. History repeats itself and the same patterns continually occur. Historically, the most affordable areas are the least gentrified and are closest to the core tend to appreciate at the highest rate. So you ask, where's the next pocket to be on the lookout for? To hit that proverbial tipping point we must ask the hipsters because once they descend, values start to rise.
I’ve identified 5 key areas that I feel will represent superior investment opportunities and ensure better returns.
Silverthorne
Firstly, I would look towards the Silverthorne area.
Location: Flanked by railroad tracks marked by Eglinton to the north, the railroad tracks west of Caledonia to the east Rogers Road to the South the Union Pearson Express rail line to the West also called Hillsdale / Eglinton.
Silverthorne is an area of significant transition. A new transit hub at the Kodak is being built and a new land revitalization project is being constructed in the York recreation center. This project offers exciting community amenities. There is tremendous upside for first-time buyers and builders alike. As new buyers get driven farther from the core, this location makes obvious sense. Soon the end of the construction of the crosstown Subway in Eglinton will be a significant boon for the area. We see the first signs of a hipster invasion as millennials get priced out of other areas we are starting to see trendy coffee shops and restaurants starting to open up. The quick access to the burgeoning Stockyards district with its plethora of brewpubs is also a great help. The existing housing stock of homes has many detached homes, so we are starting to see builders building knock-down rebuilds. The commercial strip along Rogers Road is quickly gentrifying and the industrial lands along the railyards will be ideal infill development opportunities.
Greenwood Coxwell
On the east side, I see tremendous potential in the Greenwood Coxwell area, sometimes referred to as Little India. Stretching from the Danforth to Queen and Greenwood to Coxwell and the area is in a unique transition. We have already started to see a renaissance along Gerrard with ample gentrification and now that is moving further east along Gerrard. Smack dab between the beaches and Riverdale and all but barren until fairly recently we are seeing an explosion in Little India of cool new restaurants, cafés, brew pubs and art galleries driving development. Hopefully, the area will be able to maintain a stronghold of its roots and the South Asian restaurants and shops will be able to co-exist. Sandwiched by quality parks on one side is Greenwood Park with its updated facilities, including a pool/skating rink and dog park and the popular Monarch Park with a large pool, playground and community events amenities, and Woodbine Park and Beach chock-full of amenities and events. This pocket is close enough yet far enough away from the eventual Ontario Subway relief line at Gerrard and Pape. The proximity to Woodbine Beach and the abundance of parks add to the draw.
The housing stock in general is slightly more affordable than its neighbouring pockets and offers solid opportunities for infill development and small investor properties set up as duplexes and triplexes. The most intriguing opportunity is the commercial stretch along Gerrard where land assembly and redevelopment of the existing buildings is ideal. There is a significant stock of underutilized 1 and 2-story buildings ripe to be repurposed as the gentrification proceeds.
Oakwood-Vaughan
Another zone to consider is the Oakwood-Vaughan zone, Oakwood-Vaughan is named for the neighbourhood’s central intersection and is bordered by Eglinton to the North, Winnett and Arlington to the east, St. Clair to the South, Dufferin to the West transitioning at a fast pace.
Commonly known as OV or Oakwood Village, is a classic multicultural Toronto neighbourhood in transition.
Drivers heading out of the city find easy access via Allen Road just north of Oakwood-Vaughan. The key attribute is its proximity to the core being only about 6 kilometres from the financial district and the construction of the Eglinton Crosstown Light Rail Transit which has caused years of retail suffering and traffic chaos. Its impending completion will undoubtedly help the community prosper.
The annual Oakwood Village Arts Festival and the Oakwood Village Library and Arts Centre promote a burgeoning art community. Arts-focused community-based facilities (Arts Starts and the Oakwood Village Library and Arts Centre) call the neighbourhood home. Make no mistake, the strong artistic presence is a statement about affordability here, although it is a neighbourhood in transition: The large number of affordable detached homes has caught the notice of infill builders and we are seeing an ever-increasing number of knockdown rebuilds. Tenants appreciate the ease of access and more reasonable rental rates for the time being. The most significant event to help drive development has been the advent of two private schools, the Lycée Français de Toronto and the Leo Baek Day School which have driven a demographic change. The City of Toronto recently allowed increases for building intensification and coverage in helping to spur development, including Live Work use.
Don Mills
This sprawling affluent Toronto neighbourhood stretches from York Mills in the north to Eglinton Avenue East in the south. The eastern boundary is marked by the Don Valley Parkway. The western edge of the neighbourhood runs down Leslie from the 401 to York Mills and down Bayview from York Mills to The Bridle Path. What was once North America's first planned community Don Mills is starting to transform again. Most notable amenities include the Ontario Science Centre, Aga Khan Museum and right in the middle of some of the best urban ravine and park infrastructure between the Don River and Sunnybrook Park, Edwards Gardens and 2 Golf Courses. Adjacent to one of the premier Health Facilities Sunnybrook Hospital and a top Private School. The massive redevelopment at Don Mills and Lawrence, once an Indoor Mall and now transformed into a community hub, The Shops at Don Mills are witnessing an influx of condos being built on the site.
The construction of the Eglinton Crosstown and the likely-to-be-built Ontario line (part of the relief line) with an Ontario Science Centre stop will be pivotal in encouraging further developments. The sizable commercial/industrial sectors lend themselves to significant repurposing, including the massive 60-acre site at the old IBM facility slated for mixed-use with 10,000 residents.
The existing housing stock consists of an abundance of older 1950 and 1960s-era detached homes on large lots, ensuring a sizable number of quality infill opportunities. Already we are starting to see a significant number of knockdown rebuilds throughout the zone. There are several older mid-rise rentals which would lend themselves to further coverage along with ample industrial lands for residential opportunities.