Real estate is volatile. Like any other type of investment, there is no 100% sure way to tell whether or not you will make money from your investment. Every year, homebuyers, investors, and real estate professionals in Canada ask the same question – should you invest in real estate in Toronto?
As 2021 is almost over, this question is once more on the lips of those planning to buy properties but are on the fence because of what other people might be saying about it. The one about Toronto’s real estate stability coming to an end is heard almost as often as you hear about homeowners and investors doing well and making incredible equity gains by deciding to buy properties when they did.
So, why should you find a home in Toronto in 2022?
Read on and find out as Sold with Presta shares the answer to this question:
Why You Should Invest in Toronto Real Estate in 2022
High Equity Gains
When you’re smart about it, investing in real estate in 2022 can be fruitful for you. The prices of condominiums in Toronto proper have increased by 52% since 2015. What that means is if you bought one in 2015 for $400,000, you would have made $50,000 per year by having that condo.
Stable Demand for Rental Inventory
Investing in real estate in Toronto is very profitable. Considering that the population in the city is still growing, you can say that the rental demands are high and stable. The pandemic has affected the rental market for a while, but that proved to be just temporary, and rental demand in Toronto is high again. College students are returning, and immigration is booming, so if anything, the rental inventory will increase some more.
Canada’s Strict Lending Practices That Protect You
When you buy an investment property in Canada, you know that it is safe because of the plethora of guidelines that are in place. This includes the Stress Test when 2018 starts. That was raised in June 2021, so the Stress Test threshold is now even higher. Additionally, Canada has a really low delinquency rate. This year, the rate is at its lowest in the last five years at 0.25%. So, while Canadians may be mortgaged up to their limit, Canada’s loan default rate is still pretty low. It appears that Canadians are responsible and don’t like missing payments.
Are Condos a Good Investment in Toronto?
The condo market is where you’ll get the biggest gains when you invest. The prices of condos in Toronto have risen by 13% on average per annum. That said, some areas perform better than others, so you need to be tuned in to these things.
Considering its historical growth, investing in condos in Toronto in 2022 (or before 2021 ends) means you’ll enjoy huge benefits. Toronto is poised to be comparable to such cities as New York and San Francisco, with the difference that the property values are still below their markets.
If you want to find a house in Toronto or a condo to invest in, you need to do it with the help of a real estate expert who knows everything about Toronto’s real estate market. That way, you know that you’re getting a property in an area where you can get the highest gains for your investment.
Sold With Presta offers you the services of one of the best real estate agents in Toronto who knows the Greater Toronto Area like the back of his hand. Whether you are looking for a residential or a commercial investment property, Andrew Presta can help find the best one that meets your needs. Contact us today and find out which properties are available!