The market has proven to be remarkably resilient and lucrative, despite some dips
Amid newfound momentum due to an upward trend in detached home sales, Toronto remains probably the best real estate investment destination in Canada, according to RE/MAX.
A large part of this stems from the city’s population growth – indeed, among the fastest in North America. Government figures indicated that Toronto saw the addition of more than 77,000 new residents from July 2017 to July 2018.
This had a significant impact upon the market’s condos, which have been continuously growing in value since 2015. The asset class has seen a 52% gain to date, according to the RE/MAX Pierre Carapetian Group.
“At those numbers, you would make $50,000 per year if your purchase price for a condo was $400,000 in 2015. That’s $200,000 in five years,” RE/MAX stated.
Rental units have also enjoyed a resurgence, with the expanding population fuelling greater demand for this property type.
“A combination of immigration and a growing tech industry has brought a large number of new Toronto residents to the city anxiously seeking rental homes,” RE/MAX added. “That includes tech companies such as Uber, Microsoft, and Pinterest, to name a few.”
In the case of apartments, a one-bedroom unit has an average rent of $2,259 per month, “more than enough to help you pay down your mortgage when you invest in a rental unit.”
“The real estate market in Toronto should be looked at as a long-term investment. It provides a tangible asset, compared to something such as stocks. When the real estate market takes a few dips here and there, it’s just a matter of time before it begins to climb again,” RE/MAX concluded.
