Buying Toronto Condos… Is now a good time to buy in Toronto’s condo market?

When considering investing in the Toronto condominium market it is important to look at economic conditions that will affect condo prices. With low interest rates keeping home ownership affordable for many buyers, national activity over the Spring months in 2012 came in stronger than anticipated.


Now is a great time to invest in residential property. The fear that people might have about investing is concern about broader economic conditions such as interest rates, inflation and tax levels. But one thing that we can say about bricks and mortar compared to other investment types is that you have something very tangible, you can see what you’re investing in, and you have a large measure of control. You’re not necessarily relying on the business strategy of a company. We often have experience in home ownership and have the confidence that it’s a safe asset class.


As you consider property types to invest in, one of the easiest to get into today is the condominium. They are relatively low in cost and it is possible to get rental income from tenants that will cover your mortgage, interest and taxes. This is the goal of every investor.


The real estate condo market has shown signs over the last year of cooling. After the last ten years of a boom period, investors and first time buyers finally have a chance to buy at affordable prices and get on the housing ladder. There are very clear signs that this recent softening won’t last forever; but while it’s here, it brings good buying opportunities.


The 2012 changes in mortgage restrictions by Canada’s finance minister have coincided with a slowed house price growth. Interest rates have remained extremely low and people have been taking advantage of these low rates to their benefit. It makes perfect sense to look at these broader macroeconomic events that have an impact on your investment potential.


If you’re looking to invest in a condo, then, in terms of stability and the rents in relation to price, Toronto presents a great opportunity. The stability is due to the relatively modest pricing of Toronto condos. There is expected to be a reducing level of supply growth going forward, so these prices may not remain low as we proceed into 2013. Also, the rental vacancy rate is very low, and the annual influx of population to Toronto is the highest of all Canadian cities.


Canada is the envy of the western world for its stable economy over the last ten years. While other markets in the G20 have been in recession or a state of long-term implosion, the Canadian economy has remained resilient. It is only now that condo prices have softened that buying opportunities are really presenting themselves. Toronto investors and first time buyers need to take advantage of this opportunity. The reliability of the local housing, and particularly, the condo market, makes it ideal for investors who don’t want undue risk. It’s a long-term investment with attractive potential returns.


In summary, the Canadian housing market has been cooling in the last few months. Home prices across the country have seen only modest growth. It is expected that overall moderation in housing sales will lead to opportunities that may not be repeated for many years. The housing market is likely to see a big improvement as the US economy recovers.

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