Toronto vs Hamilton Income Properties: Which City Has the Better Investment Returns?

[@ElevateRealtyCa]

If you had to choose one, what would it be: CASH FLOW or APPRECIATION? Vote below 👇

[@AhmedSadoon]

Best of both, or at least most closer to both.

[@초록샛별]

I prefer Toronto, land of Toronto is limited but land of outside of Toronto is extensive. In the end it is all about supply and demand, limited supply vs continuous high demand

[@ElevateRealtyCa]

💯

[@UragilWorld]

Great video. I'm actually leaning towards appreciation as long as negative cashflow you experience are manageable & you are holding the property long term. If you hold it long term, at some point your negative cashflow will become neutral or positive and you enjoy the strong appreciation of the property but then again, you should be able to comfortably manage the negative cashflow. Otherwise, you are gambling not investing.

[@lesleywhite2492]

Your videos are good , analytical & informative. I appreciate that you are trying sell Toronto free hold over any other location & /or property because you are operative in Toronto . But we are professional investors & we do not find Toronto as good value. We are open to any any city. We find KWC, Hamilton, Niagara, Barrie, Ottawa, (even Windsor) as far better investments. Here are our takes: 1. Past performance is not any indicator of future. 2. Do NOT keep all eggs in one one basket. 3. Technology is evolving very fast & Toronto is losing luster to stay. 4. Unlike Vancouver, Toronto has excellent Go transit so in one hour drive you can reach much nicer place.. 5. Professional investors do not manage themselves . So distance is not issue.. All in all, our take is next 10 years, outskirts of GTA will be far better than GTA from investment point of view.

[@ElevateRealtyCa]

Totally agree that diversification is important! In the short term the outskirts are appreciating faster and distance to the core isn't as important (as we see now with COVID) but we do feel that in the long run people would still prefer Toronto. It's great to hear the viewpoints from other real estate investors like you!

[@AhmedSadoon]

Awesome comparison and information. Wish you could do a comparable comparison of two median individuals property or area in C$. Would love to see more comparative video like these such as Toronto vs Vaughan, Mississauga, Milton, Brampton, Oakville etc.

[@ElevateRealtyCa]

Thanks for the suggestion!!

[@josephjin8387]

33% ROI from cash flow in Toronto? LOL! please show your calculations how you got 33% ROI from cash flow. To be realistic it should be negative cash flow in Toronto unless you put way more than 20% downpayment which is not optimizing your leverage. You should provide a video with a real life example calculation both Hamilton and Toronto property.

[@ElevateRealtyCa]

This is for freeholds in Toronto, back in Sept 2020 before the spike in real estate in Q1 2021 Here's a back of the napkin calculation for your reference: Toronto cap rate for our freeholds back in Sep 2020 4.8% Interest annualised 1.6% Principal annualised 1.7% Leverage (based on 20% down plus closing costs) 4.3x 5 Year total ROI from cash flows = ( 4.8 - 1.6 - 1.7 ) x 4.3 x 5 years = 32% The 33% ROI from cash flows is based on more exact numbers at the time of calculation when the video was made.

[@josephjin8387]

@@ElevateRealtyCa Could you elaborate how you got 4.8% on your toronto freehold? home value rental rate expenses

[@josephjin8387]

@@ElevateRealtyCa Also, in your video, you mentioned cash flow roi, so asked for your cash flow calculation. You gave me your cap rate calculation which I didnt ask for on my first comment. Please provide how you came down to 33% cash flow return rent income - operating expense - mortgage payment = ???

[@ElevateRealtyCa]

Based on $850K property (Sept 2020) Rent Upper $2,700 Rent Lower $1,500 Utility $400 Insurance $100 Property Tax $300 Cash flow = cap rate - mortgage payment, which is what is calculated.

[@josephjin8387]

@@ElevateRealtyCa Thanks for sharing. I never thought I could get a property in Toronto around 850K. I currently own 2 duplexes in Hamilton, and looking to pick up another property. Hamilton duplexes on mountain are over 800K and I feel these are a bit over priced. If I can get a property in Toronto at 850K that can generate $4200K rent income, I would start looking into Toronto. If you could provide your contact so I can reach out and go through Toronto properties, it would be much appreciated. Thanks,

[@dPhaker]

lost me .. guest this isn't for me