Toronto is expecting to grow by 700,000 residents from now until 2051. That's a lot of homes that need to be provided for an already scarce inventory. Low supply + high demand + growing population = a disaster.
First things first though. What is a Multiplex?
Multiplexes is a single residential structure that has two, three, or four units within. Usually, this design is for low-rise properties. These properties could be rented and they could either be in the form of converted houses or purpose-built as a multiplex.
For investors, this is a great rental property as it will allow you to earn passive income.
This past week, Toronto councillors have voted in favour of policy and zoning changes that will allow for multiplex housing to be developed city-wide.
Multiplexes were never allowed in many parts of the city because of the zoning bylaws. Recently, the council signed an agreement to build 285,000 properties within the city over the next decade. This amendment means single-family property in any neighbourhood could be replaced with low-rise housing of two, three, or four units. The move will add to the diversity of housing in the city that lacked buildings with multiple units.
As the city grows, it needs more housing types in other areas and multiplexes can help meet that demand. They hope that this will not only provide more homes by in turn help our affordability crisis as well. The “More Homes Built Faster Act” is very aggressive as it promises to build 1.5 million houses in the next 10 years.
Here are some possible effects of this approved law:
Zoning may now be overridden without prior approval and build “middle homes”.
Municipalities might not have a standard regulation of the size of the new additions as of now.
Homeowners can convert their single unit into a duplex or triplex.
Units that will be added from an existing single-family home will be exempt from developmental charges.
Why could this be an investment for you?
Gives you an opportunity to generate additional cash flow in the form of rental income. If you are living in a single-family home, and are thinking of ways to generate passive income – switching your single-family home for a multiplex could be one answer to your woes.
It can help you save some money by reducing your cost of living. In a multiplex, most of the living expenses – including maintenance and repairs – are shared by the multiple tenants occupying the building.
Have more questions about investing in multiplexes, house hacking or just simply about real estate? Let's connect!
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