GOOD REASONS TO INVEST NOW IN TORONTO REAL ESTATE
1. Real estate is the number one investment vehicle for creating millionaires.
2. By allowing a person to leverage his/her money, investments in real estate can make much more money than stocks. A $10,000 investment in stocks may raise 8-10% a year. This is an increase of $800 - $1000 over a year. A $10,000 dollar investment in real estate on a $100,000 house which may increase in value 5-6% a year would give you $5000 - $6000 ROI which is 50-60% return. This is a no brainer.
3. Instant equity! If you make a good deal on real estate you can end up with 10-30% instant equity. Take the house mentioned above. Say you made a good deal on it and purchased it for $400,000. The house is worth $425,000 and next year it will be worth $550,000. You walk away with $25,000 instant equity, and next year could sell the property for $150,000 in profit. Spend a couple thousand adding curb appeal to the property and you could maybe get $575,000.
4. The real estate market is at or near the bottom. If you buy and hold till the market regains its composure you stand to gain considerable equity.
6. We are in a buyers market. With all the foreclosures on the market, many people are struggling to sell their home giving you bargaining power when you talk to them.
5. Landlords that over leveraged their properties are having a hard time. You may be able to pick up a good deal if you find the right landlord.
6. People are going through tough times with the unemployment rate at about 10%, Many people are losing their homes. If you purchase the house in pre-power of sale you can help the owner out of his or her tough situation. This opens an opportunity for creative financing using subject to, I would be cautious of doing seller financing because if the person ends up filing bankruptcy you could be out of a house.
7. There are a number of good buys re: power of sale properties
8. Real Estate is low. The current housing market is at levels not seen since the last bust in 1989. This bust created many real estate millionaires. People who saw the opportunity from the 1989 housing bust profited immensely. Many if not more opportunities exist in this bust as there were in the 1989 bust.
9. Toronto is one of the few cities in the world where people can afford to buy in a downtown location, close to subway, work, shopping and entertainment or even the waterfront.
10.The overall price index for condominiums in downtown Toronto is $385/psf; Vancouver is $600/psf and Manhattan is $1,120/psf US
11.The quality of finishes and choice of suites offered in new(er) Toronto condominiums are unparalleled to other cities in North America.113,000 people have bought condos since 1997
12. 2002, 2005, 2006 and 2007 were record years for condominium sales in Toronto
13. The growth in demand for condos will increase as population matures and grows. Biggest area of growth will be with first time buyers and empty nesters. These demographic shifts are driving the condo popularity
14. Historically low mortgage rates, solid job growth, #1 economy in G7 and stabilization efforts from the federal government are all working to make our real estate market still a great investment.
15. Toronto has outsold, even doubled, every major city in North America in condo sales, making it the strongest and busiest condo market
16. Current rental market is tight with a 2.1% vacancy rate. It is a Landlord's Market. Excellent for investors
17. Investing in a condominium is wise financial planning as a rental unit. Rents are excellent in popular locations
18.Toronto population expected to grow to 7.45 million citizens by 2031
19. Condos are still the most affordable ownership option on the market
20. Low interest rates and affordable prices keep market steady
21. Strong population growth through immigration into Canada/Toronto area
22. Consistent condominiums sales are still being reported all over the GTA, especially in 905 areas
23. The Toronto real estate market has rebounded strongly from the recession and we are in a strong Seller's Market.
Sources:
Urbanation
National Post
Canadian Mortgage and Housing Corporation
Toronto Star
Canadian Real Estate Association
Toronto Real Estate Board
