Should investors looking to invest in Toronto’s condos invest now, or wait a bit more
The world is an interesting place having loads of business activities. Buying a home is one of them because everyone wants a place where they can live. They also want a place to live that is like their own (or in fact their own) so they can live in peace, with dignity and with freedom.
Moreover, a person having their own home lives a life of peace, dignity and free of stress. They don’t have to worry about paying the rent or paying off the mortgage. Utilities are part of home living, and they should not be a worry.
When it comes to investing in a city like Toronto (one of the fastest growing cities in the Americas), it is a great chance to build up assets that will rise in value. Investors should use this time of the year to capitalize on opportunities present in Toronto’s real estate market.
There is however one gloomy fact that investors should know; sales of condominiums in downtown Toronto are in a slowdown due to the COVID-19 pandemic. Now is a really nice time to invest in good old T-Dot’s condo market and take the opportunity of low condominium prices everyone has been observing for the first time in more than 10 years.
How are the condominium prices in Toronto at the moment?
Prices of condominiums in Toronto have recently been staying stagnant while prices of homes have risen up. Those who are looking to invest in real estate should begin with the sector’s most affordable unit, a condo.
Why? Because they have been steady and are quite affordable in comparison to homes. Hence, condos are a worthwhile residential property to invest in.
Now that everyone is in the Spring market, everyone is observing the way condos are appreciating in price. A lot of them are beginning to sell for above price. This window of opportunity to invest in the good old Toronto housing market is small and might be over soon.
What is the nature of Toronto’s real estate market?
Toronto’s real estate market evolves constantly and is growing as well. It is also facing immigration which was announced by the government of Canada. COVID-9 vaccines are being rolled out. The city’s real estate market is a sector that is quite sure to see gains and growth come in quickly.
Moreover, the gap between prices of homes and condos in Toronto is becoming more prominent and evident. Very soon, condo prices will be going up. Investors may need to capitalize on existing market conditions because these conditions will not last long.
With a vast majority of Canadians expected to be vaccinated by September, the fall real estate market starts then. As most businesses and students will be returning back to Toronto, rental prices can rise. As soon as people start returning back to downtown Toronto, it will hence drive up demand and prices for condominiums.
Real Estate is a long term investment that should never be ignored
Without any doubt real estate is the best long term investment anyone’s money can buy. Whether the investor is a first time investor or an experienced one, 2021 is the year of Condos in Toronto’s real estate market.
Condos are the most affordable option unlike single-family detached homes, which have been listed for record-high prices and will only continue growing in Toronto.
The purchase of a single-family home is unrealistic and unattainable. Condos are hence the most affordable and attainable option to enter real estate today. Canada’s home ownership rate is a unique 68.55 percent. This is a good rate especially in the developed world. However, this percentage can drop within the next 2 decades if prices are not kept in check.
Some investors revealed that they chose to invest in the condo market of Toronto when they were in high school. Now, they have gained substantial equity to purchase more properties. Investing in real estate can help many create wealth for themselves quite fast and with a lot of safety.
Yesterday was indeed the best time to buy. Now, today is a much better time to buy than tomorrow.
With the interest rates at an all-time low right now, the money investors have can be served much better, gaining value in a condo instead of sitting idle in a bank account. No investor needs to wait and see how the market is, because they could be investing in their future and making equity.
Developments in Toronto
Things continue to develop in Toronto. Condos are shaping the future of Toronto’s housing and of the Greater Toronto Area (GTA) as well.
As Canada starts recovering from COVID-19 and immigration rates return to normal, there will be a higher demand for rental properties in Toronto. The Canadian government plans to bring more than 1.2 million immigrants to Canada within the next three years, and this will boost the market by a monumental margin.
The Greater Toronto Area’s housing market gets benefits from new immigrants. Cultural and labour diversity of Toronto has managed to attract a lot of people from around the world.
Toronto’s real estate market has been quite steady, and COVID-19 has been the first incident in more than a decade that has seriously affected the market and caused pricing fluctuations (The severe acute respiratory syndrome (SARS) was the last known disease to cause this to Toronto).
Being able to buy at a time when prices are on hold and that too for the first time in over a decade, this presents investors a fantastic opportunity to buy real estate. This is the time to enter the market before the prices start rising.
As the prices have not reduced in over a decade, investors will hardly get an opportunity like this in a long time.
When investors are deciding to invest in Toronto’s condo market, it is important for them to remember their financial budget and existing financial limitations. They should have a pre-approval in place as it is key to surviving the competitive nature of the city’s real estate market.
The rise of pre-construction condos
Pre-construction condos are quite popular and can prove to be a worthwhile investment. Numerous properties in Toronto are often sold by realtors specializing in pre-construction properties and only a handful of real estate firms deal with such.
The benefits of pre-construction condos are that investors purchase brand new properties, paying down less money over a considerable time period giving them more leverage. This is a much better option for investors who need to spread out their payments over a longer period of time.
Projects that use imported windows will cost more because these windows are 60% more expensive than the local ones. With construction prices going up thanks to materials costs and labour costs rising, properties will become expensive.
The longer investors and buyers alike wait to buy pre-construction properties, the harder and more expensive it will become for them as prices will go sky-high.
Toronto as a city is growing and it curbs urban sprawl by mixing apartment buildings in residential plots. Inner city suburbs of the city are bound to have condos, as it has one of the highest population densities in the Americas.
Investing in Toronto’s real estate is a golden opportunity no one should overlook and in Canada’s financial capital, such investment paves the way for greater equity, greater earnings and a very good life in one of the world’s most liveable cities.