Although a cliché, one of the best-known but timeless principles of real estate is “location, location, location”. With a new decade upon us, this still remains true. Whether you’re looking for the best place to invest in real estate in Canada in 2022 or the best place to invest in real estate in Ontario for 2022 — we have one answer for you, Toronto!
Investing in Canadian real estate continues to be one of the best investment moves anyone can make and a preferred approach to protect and provide for you and your family’s future. Because investments are usually long-term, we know it’s important to look at what is happening now and what impact the trends we’re seeing today will have 20 years from now. This is an essential strategy we use to help our investors choose the location of their next investment property.
Why Toronto Is The Best Place to Invest in Real Estate in Canada 2022
We constantly get asked, “Where is the best place to invest in real estate in Canada?” As a top Toronto real estate brokerage, over 50% of our clients are investors looking to make money by investing in the Canadian real estate market. Although the exact location differs on an on-going basis, our answer always remains the same, Toronto is the best place to invest in real estate in Canada.
We have clients all around the world who turn to us to help them invest wisely in the Toronto real estate market. But what’s so great about the city, and what’s the expectation that The Six is going to remain a fan favorite by real estate investors far and wide?
Here are just a few of the top reasons why without a shadow of a doubt, Toronto has been and continues to be the best place to invest in real estate in Canada in 2022.
See how my clients’ portfolio properties performed here.
The Toronto Real Estate Market is Stable
Toronto has proven to be one of the most stable real estate markets around the globe and one of the best Canadian cities to make real estate investments.. Even when you consider the uncertain times we’re living in, such as the current state of the COVID-19 crisis or the different stress test regulations, we strongly believe in its long-term growth potential as Toronto has remained fairly insulated. Stringent lending guidelines, low delinquency levels, record immigration and a growing population are among a few of the reasons the Toronto market is so stable.
1. Stringent Lending Guidelines
Another reason why Toronto is one of the best Canadian cities to invest in real estate is because Toronto property owners are extremely well-funded. Canada’s stringent lending guidelines only allow very qualified people to purchase property. They have to jump through a number of safeguards before a bank will lend them money — the addition of the stress test is just one more precaution the government has added to ensure buyers can actually afford the homes they purchase should interest rates rise.
The stress test started in 2017 as a way to cool down the market overtime and, acting as a minimum threshold for applying for a home in Canada. Today, the stress test is reducing purchasing power by an average of five percent. James Laird, co-founder of rate comparison website Ratehub.ca., shared his views on the current state of the market and how the stress test looks in real estate today:
“What the policy-makers had in mind was to slow down the rapid appreciation of home values that we’re seeing across the country.” he told CBC News. “In the long run, it actually makes it possibly easier for first-time homebuyers to enter, [so] maybe you could call it neutral.”
2. Extremely Low Delinquency Levels
When it comes to buying a home, Torontonians are extremely well funded. Delinquency levels — mortgages left unpaid for 60 days or more — are considerably low. This means there are very few people defaulting on their mortgages. With the most recent implementation of the Stress Test for all buyers, this trend is expected to continue and is just another reason why Toronto is one of the best places to invest in real estate in Canada. It is unlikely that changes in rates or the market will cause buyers to have to dump their assets and take a loss. Well funded means they have a backup plan and they are in the property game for the long haul.
3. Immigration in Toronto
Already having a reputation as one of the most multicultural urban areas in the world, the Toronto Region’s population base in particular, is one of the fastest growing in Canada as newcomers from around the globe choose Toronto as their new home each year.
Immigrants remind us how good we native Torontonians have it and that we should appreciate our city more than we actually do. We have the opportunity of living in a residential area near the big city, a low crime rate, an amazing multicultural population, a strong economic hub, great cuisine and entertainment, government stability and an abundant amount of job opportunities.
With immigration continuing to rise and highly paid skilled labour jobs being added to the workforce, it is easy to understand why immigrants choose Toronto and overall, why it is the best place to invest in real estate in Canada.
4. Growing Population
Canada is the fastest growing country in the G7 and Toronto has more than twice the proportion of recent immigrants (8.4%) as Canada (3.5%) with approximately two million more expected by 2023. Adding to the trend is Canada’s low dollar and high quality of living (16th in the world). Toronto is an ideal home for migrating foreigners — and your dollars — as one of the top Canadian cities to invest in real estate.
READ: Why It’s Actually A Good Time To Invest In The Toronto Condo Market
Toronto is a World Class City & Major Tech Hub
Toronto is one of the fastest growing real estate markets in Canada thanks to its increasing population and boosted international profile to that of a world class city. Toronto has been recognized as Canada’s “tech hub” and has been called the Silicon Valley of the North. The city continues to grow and establish its dominance on a world-wide scale. This is just one of the reasons why Toronto is the best place to invest in real estate in Canada in 2022.
According to Robert Half Technology, the tech employment rate is growing four times faster than the overall employment rate in Canada. This tech job growth is most prevalent here in Toronto which recently ranked highest in Canada for tech jobs. Toronto’s commercial real estate market has attracted several high-profile tech companies in the past year including Uber, LG Electronics, and Microsoft.
READ: Big Tech Companies Are Investing in the Future of Canada
Big tech companies are investing highly in Toronto’s future and hiring very skilled workers that are specialized in their field. One of the major developments coming to Toronto’s east end — and brining with it 70,000 tech jobs — is the East Harbour development. In turn, this adds to the demand for real estate in the city. There’s a need now more than ever for real estate investors to bring condo rentals to the market.
READ: East Harbour Toronto To Become New Employment District
Toronto’s Transit Plan Will Lead to Continued Price Growth
With there being endless reasons telling you why you should invest in the Toronto real estate, our planned transit infrastructure is just one of them. With four upcoming projects that are set to bring profit to investors, it will also highly impact the Toronto real estate market immensely.
Of course, prices will favour locations near transit lines, so the value in those areas where the upcoming major transit projects will rise, are to be expected. The areas set to become more accessible by transit have already begun to see higher resale price growth. This is just one of the many reasons why Toronto is one of the top Canadian cities to invest in real estate in 2022.
Here are the 4 major transit projects the city of Toronto is looking forward to:
1. Eglinton Crosstown LRT
The Eglinton Crosstown LRT Transit line is currently under construction with 2023 being its expected completion date. The 19 kilometre stretch along Eglinton between Weston Road and Kennedy Station will have 25 stops, ten of which will be underground.
With an estimated completion date of 2025, SmartTrack will utilize the current Metrolinx Go network for more frequent service. The six new stops will be at:
- St. Clair & Old Weston
- King & Liberty
- East Harbour
- Gerrard & Carlaw
- Lawrence & Kennedy
- Finch & Kennedy
3. Relief Line South
The Subway Relief Line South is a 7.5 kilometre subway addition connecting Line 2’s Pape Station and will run through Leslieville before heading west to connect to Line 1’s Queen and Osgoode Stations.
The new proposed stations will be at Gerrard and Carlaw, Carlaw and Queen, East Harbour, Sumach and King, Sherbourne and Queen before passing through Line 1 along Queen.
4. Waterfront Transit Line
The city has been working on reconnecting Toronto with its waterfront by rerouting the Gardiner Expressway and opening up the waterfront area to allow for better use of the land below. There will also be a four-phase transit reset which will connect Woodbine Beach to Long Branch servicing the waterfront area that is home to so many cultural and recreational events.
The Waterfront Transit Line is still in the early stages but the improved waterfront LRT system will connect to Woodbine Beach, East Harbour, Union Station, Exhibition Place and Long Branch.
For a more detailed description of each of these projects check out our post “Why You Should Invest in Toronto Real Estate: The 20 Year Transit Plan.”
The Time To Invest in Toronto Real Estate Is Now
So, is it a good time to be investing in Canadian real estate? Absolutely! Especially if you invest in Toronto real estate — one of the fastest growing real estate markets in Canada. From its promising real estate market, to it’s growing population, depth of opportunity transit infrastructure gold mine, Toronto is surely the best place to invest in real estate in Canada, no questions asked.
As a world class city with so many future developments in the works and a strong and stable market, Toronto remains the next best place to get your toes wet in the realm of real estate investment.
And remember, if you’re looking for the ‘perfect’ time for buying an investment property in Toronto, it’s never going to come. But if you’re looking for a healthy, stable market to invest in with great growth potential then the Toronto condo market is yours for the investing — and primed for profit.