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Affordable Toronto Lofts Under $500,000

Affordable Toronto Lofts Under $500,000

Mar 2, 2015
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There are many buyers searching for condos for sale in Toronto under the $500,000 mark. Recent cuts to mortgage rates have spurred a new generation of buyers to action, making it easier for first-time buyers to carry a Toronto condo. And coming up with a 20% down-payment is clearly more viable if your purchase price is kept in check.

But a small budget doesn’t need to mean a sub-par property purchase. Quite the opposite–we’re spoiled for choice with the sheer volume and variety of Toronto condos for sale. There’s truly something for every buyer.

What’s surprising to many first-time buyers is that they can get a really nice Toronto loft space on that budget. Toronto lofts typically come at a premium over Toronto condos because they’re rarer, tend to be larger (and therefore pricier) and demand often exceeds supply. But you can find some truly stunning Toronto lofts for sale in great neighbourhoods at surprisingly reasonable prices.

Here are my top three favourite Toronto loft buildings that offer good-sized, one bedroom units for under $500,000. There are cheaper buildings to be found but I’ve selected these because of the quality of the individual units as well as the buildings themselves and because of the value they offer when compared to local area comps.

Our Top Picks for Affordable Toronto Lofts

The Smart Investment: Toy Factory Lofts

ToyFactory-Lofts-Entrance

ToyFactory-Lofts-Entrance

While this building offers incredible value for money, the Toy Factory Lofts aren’t exactly synonymous in buyers’ minds with “affordable”. True, you will be limited to a one-bedroom unit on budgets of $500,000, as seen in our condos.ca Toy Factory statistics below, but you’re securing a better return on investment than in most other Liberty Village condos–something first-time buyers should keep in mind if they want to grow their equity and keep moving up the property ladder.

ToyFactory_Sales

ToyFactory_Sales

The Toy Factory lofts appreciated 9.5% in 2014 over the previous year; a whopping 7.8% above average for a Liberty Village condo last year. As well, the maintenance fees are extremely reasonable making carrying that new condo easier. You can read more about the Toy Factory’s fee reduction in our recent study on condo maintenance fees .

With a little patience, working with one of our condos PROs , you can find units in the Toy Factory around the $500,000 mark. They will be on the smaller side but “smaller” isn’t miniscule in this popular building; units start at 655 sq. ft.

Even better, wait for a unit that doesn’t show well. Most units in the Toy Factory are fairly well-designed and updated but there are some that just aren’t staged to sell. For buyers on a budget, think of a starter-sized unit in this popular building that lacks wow-factor as the equivalent of buying the worst house on the best block. Something as simple as better furniture placement and a new paint job can increase the perceived (and actual) value of your unit making that “worst loft in the best building” strategy really pay off come re-sale.

The Swank Address: Madison Avenue Lofts

380-macpherson-condos

380-macpherson-condos

The Madison Avenue Lofts offer some of the best entry prices available for lofts in Toronto. This loft conversion, completed in 2009, is a rare example of an affordable hard-loft. More often than not it’s the new build, soft-lofts that are most affordable (they’re typically cheaper to construct than a warehouse or factory conversion) but the Madison Avenue Lofts offer authentic loft spaces for less than $600/sq. ft.

As you can see from our statistics below, it is possible to find units up to 1,000 square feet for under $500,000, making it a great building choice for first-time buyers.

Madison_Sales

Madison_Sales

From my perspective, I would recommend this building to buyers who are less concerned with equity growth and more concerned with having a comfortable living situation now. Values have been relatively flat in the Madison Avenue Lofts over the last three years. And so while you’re highly unlikely to lose money, you’re not making the kind of dramatic profits come re-sale that we’re seeing in other buildings like the Toy Factory and the Broadview Lofts . That said, you’re getting a lot more bang for your buck in the here and now, including an enviable location near Casa Loma and multi-million dollar homes.

If getting as large and lux a unit as possible, in an exclusive neighborhood, on $500,000 max is your goal, then you should definitely check out the Madison Avenue Lofts.

The Overall Solid Choice: Sorauren Lofts

347-sorauren-condos-1

347-sorauren-condos-1

The Sorauren Lofts in Roncesvalles are my overall top pick, falling somewhere in between the value growth of the Toy Factory and the affordability of the Madison Avenue Lofts.

While they appreciated well-above the Toy Factory Lofts last year, at a whopping 19.6% increase in value, I see this as a long overdue price correction with values just now coming in line with what the building is actually worth. I predict that this sharp incline in value appreciation will moderate over the next few years but that this building will continue to appreciate at or above average for the city, making it a solid investment choice.

Most importantly, it’s appreciating strongly while keeping entry prices reasonable for those on the purchasing end of the equation, particularly when compared with the nearby Robert Watson Lofts which typically cost much more for a comparable location and aesthetic.

Sorauren_Sales

Sorauren_Sales

$500,000 or less will get you a relatively compact but beautiful space in the Sorauren Lofts with its brick and beam construction and coveted hard-loft features.

Gain Access to All of Our Loft and Condo Data for Free

These are just a few of the affordable loft options available on the market. If you’re thinking about buying this year, start by doing your research.

Sign-up as a condos’ Insider on our website and you’ll gain instant access to all of our unique condos.ca data and tools including historical price per square foot trends, average maintenance fees and average costs by unit size both for individual buildings and neighbourhoods.

Do your research before you buy and make sure to hire a Toronto Realtor who specializes in condos and lofts. You want a Realtor who is experienced and highly knowledgeable about the neighbourhoods and buildings you’re interested in.

Feel free to speak with me or one of our other Condos’ PROs today with no obligation, to learn about how we can help.