Toronto Real Estate has proven to be a smart and successful investment for your money. Investing in a rapidly growing city like Toronto is a great chance to build assets that will increase in value. Every month, a portion of your mortgage is getting paid by your tenant, and you’re building up equity in the property at the same time. Being one of the most multicultural and diverse cities in the world, roughly 100,000 immigrants arrive in Toronto every year as they are drawn in by the city’s cultural offerings and massive economic opportunities. The city is never lacking in new and permanent residents. By investing in Toronto Real Estate, you are dealing with a market that will have a steady stream of tenants who will need your rental property for their housing needs.
Due to COVID-19, the interest rates are at an all-time low and so your money can be much better served to gain value in investments rather than sitting in your bank. Instead of waiting around to see how the market is, you could start investing in your future today and start building equity.
Strong Market Appreciation
Toronto has shown to have a strong market appreciation. Real Estate prices have only gone down twice in the past two decades, including the Financial Crisis in 2008 and during the COVID-19 Pandemic. Due to the pandemic, many condo buildings saw an all-time low in pricing. Now that condo prices are making a return, it is a great time for investors to capitalize on the opportunity before prices start to rise substantially. Now that the Ontario vaccine roll-out is underway, offices will reopen and post-secondary students will return to the city. There will be a demand for rental units and condo prices will again increase. The Toronto Real Estate market grows 5% per year, making real estate investments in Toronto a safe long-term investment.
Steady & Growing Rents
Real Estate is the best long-term investment that your money can buy. The Toronto Real Estate market is constantly growing steadily. It is expected that rents will rise this year in the Fall as the vaccine rollout is underway and Toronto city life will return. As COVID-19 numbers decrease and renters return to the city, you will see a significant increase in renters and prices.
It’s also important to note that the Canadian government recently announced that in 2021 Canada will be accepting over 400,000 new immigrants. Toronto homes are also becoming increasingly unaffordable and unattainable for first-time home Buyers, which is forcing a higher number of people to rent each year. With so many residents in the city, when you are investing in Toronto Real Estate you will always have tenants that need your rental property.
More Gentrification Opportunities
Gentrification is where the character of a poor urban area is changed. This change can be brought on by improved housing, wealthier people moving in, or by attracting new businesses. As an experienced investor in Toronto, one of the best ways to target potential properties in developing neighborhoods is to track gentrification. One of the smartest strategies to make money on a rental property is to pay attention to the areas that are showing signs of gentrification.
If you can buy a property in an area that may be slightly less desirable currently but has prices that are far lower than other areas, you can maximize your profit as gentrification occurs in that location. By investing in a less popular neighborhood, your buying power can go much further. Since the neighborhood will be up-and-coming, you’ll also be getting in before prices start to skyrocket. If you get in early, you’ll see tremendous gains before the area is really transformed.
There are many projects in the works for Toronto that will increase gentrification opportunities including new transit lines in the GTA and the new $500 million entertainment facility that will be coming to Toronto on Exhibition grounds by 2025. With all these projects in the works, Toronto is more likely to benefit from higher growth in appreciation due to gentrification.
When investing in Real Estate it is imperative to work with a Broker who understands how to invest in Real Estate and is a seasoned investor themselves. With my 14+ years of experience as a Toronto Real Estate agent and investor, I can guide you towards investment properties in Toronto that will be best suited for you. You can book a call today and download our free Investors Guide to learn more about new opportunities.
