For some time, Toronto’s real estate market has been an attractive location for people who are looking to buy a home. A strong local economy paired with high employment rates are two of the main contributing factors to the increase in demand for homes in the GTA. As the younger population continues to flock to the city searching for that perfect urban lifestyle, there will be more people coming than going.
If you’re considering moving to Toronto, here are 5 reasons why purchasing real estate here can be a smart decision.
Canada’s strict lending laws keep you protected
Buying real estate in Toronto is a safe investment because of the many lending guidelines the government has introduced, including the Stress Test. Under the new rules, in order for home buyers to qualify for a mortgage loan, they will need to prove they can afford payments at a qualifying interest rate. Those who have a down payment of 20% or more will be subject to the test.
High real estate appreciation
Appreciation, or when the amount of money you sell your real estate investment for is more than what you paid for it, is high in Toronto. Historically, homes have appreciated faster than condos, but even the condo market has caught up over the last few years. Before you choose which type of property to invest in, be sure to research recent market trends.
There’s plenty of options
Although the demand for real estate in Toronto remains tight, there are still plenty of options to choose from when purchasing a property. From condos, townhomes, duplexes, multi-family buildings to single-family homes, there are many places around the city to consider and that will be sure to suit your needs.
Constant renter population
The GTA receives a constant flow of young skilled workers and new immigrants looking for employment and an urban lifestyle. If you are considering investing in a rental property, vacancy rates are low so the only thing you’ll need to worry about is finding the perfect tenant.
Many of the older homes you will find in Toronto are century homes that still carry their original character but require some improvements. If you are in the business of buying and flipping homes, Toronto is the ideal place to make money. Make sure to consider the neighbourhood before picking an investment property and talk with a professional in the industry who knows where the best opportunities lie.
Even with persistent headlines about the cost of buying a property in the GTA, the bottom line is Toronto is still a great place to invest in real estate. There seems to be no slowing down Toronto’s population growth which only points to a healthy future for the city’s real estate market.