Toronto is a fast-rising global city, joining the likes of London, San Francisco, and New York City. The Toronto real estate market may appear too good to be true, but that does not always mean you should rush to invest. If you are still uncertain about investing in some property in this Canadian capital, this post is for you! Outlined are some of the reasons you should invest in Toronto luxury homes.
High Equity Gains
Investing in Toronto real estate can be quite fruitful, especially when done correctly. Since 2017, condo prices have experienced a 6-32% increase yearly. To put this into perspective, if you bought a condo in 2017, you would have made more than $180,000 a year, by just residing there.
The impressive equity gains in Toronto luxury real estate are one of the reasons why Toronto is a great place to make investments. And that is merely the average price of real estate investments here. So, with a nice condo investment plan, you can make even better returns, quicker.
Steadily Increasing Demand for Rental Property
With Toronto’s ever-growing population, investing in real estate is quite profitable. Covid might have had an effect and reduced the demand for rental property, but this was temporary, and the market is already booming again.
With immigration expected to reach unprecedented levels, and college students returning to school, it is obvious that the demand for rental property will only continue increasing. Besides, significant developments, such as East Harbour and various well-known tech companies opting to set up offices in Toronto, mean the need for available rentals is now more than ever.
Toronto’s Diversity Attracts Top-Notch Tenants
Toronto’s robust economy and high cost of living frequently draw a renter pool with better income levels and more responsible social and financial behavior. This may result in a tenant pool that is more appealing to property owners.
Besides, Toronto’s growing population and increasing housing demand imply that owners can select their tenants. This competition can lead to a more respectful and responsible tenant pool.
However, note that it is two-way traffic if you want top-notch tenants. Owners who purchase their properties and provide quality housing will likely draw and keep better tenants.
Canada’s Strict Lending Practices Offer a Sense of Security
Purchasing Toronto luxury homes is a secure long-term investment due to the many guidelines they have introduced. For instance, the Stress Test at the start of 2018 was scaled to an even better Stress Test threshold in June 2021.
Canada is also relatively well-funded, which is evident in its meager delinquency rate. 2021 recorded the lowest level reported in 5 years at 0.25%. So, this means that despite Canadians being heavily mortgaged, the country’s loan default rate remains negligible. Canadians will go to any length to avoid missing their payments.
Let Barry Cohen Help You Make a Wise Real Estate Investment In Toronto
Toronto’s real estate market provides an appealing long-term investment opportunity, with a striking balance of appreciation and cash flows. Barry Cohen can help you easily navigate this somewhat complex real estate investing journey. The agents want to make real estate easier, so they offer a wide range of services to support you, from analysis and planning, to renovation, sales, leasing, and more. Schedule a consultation with Barry Cohen to get started!
