Real estate investments in Toronto: how to choose right place?
Toronto’s real estate market should be looked at as a long-term investment. Compared to things like stocks it offers a tangible asset. When the real estate market is taking a few plunges here and there, it’s only a matter of time before it starts climbing again.
As long as you have good advice from a real estate agent on where to purchase Toronto properties with the best earnings potential and fair market value, real estate offers a low-risk, high-return option. Additionally, you create cash flow when someone else pays your mortgage if you want to rent your house.
Often, real estate investments are the only investment you don’t need to pay up front in full. You can make a small down payment, and you can still build equity. This will result in investment in additional assets as you can leverage your equity and borrow up to 80 percent of the current value of your house. These loans come at low interest rates and can be accessed through a Home Equity Line of Credit.
Market developments in Toronto
Property prices are driven by demand and supply. Other Canadian cities may still have plenty of unused land for residential development, so land is not as valuable. They may also have a less dense population so there’s less housing demand.
Toronto is being developed is running out of housing space. The city is not approving housing quick enough even with condo plans, so we’re still seeing a supply issue with condos. On top of that, because of job opportunities, we are seeing a constant stream of people moving into city. Toronto real estate is outperforming other cities in terms of long-term appreciation, despite supply shortages and strong demand for housing.
What experts think of the risks in Toronto?
Over the past few years, Toronto has seen incredibly high house rates. Everybody said “What is going up must come down,” with many experts waiting for the moment when the bubble bursts. This is a cynical view of those who are afraid to take risks. There are many who have done very well with their real estate investment property in Toronto, especially those who were confident enough to disregard spooky headlines. Despite some nervousness, Toronto is regaining momentum thanks to detached home sales in early 2019. So, in response to the question “Is real estate a successful investment in Toronto?” We say – yes. Investing in real estate is all about timing, price, and locations that are well selected.
Property investment and foreigners
When it comes to purchasing immovable property in Canada, the laws are not the same as they are when it comes to obtaining citizenship. Anyone from any country is welcome to purchase a home in Canada without restrictions on the property they wish to acquire. It is important to note that from April 21, 2017, Canadian non-residents are required to speculate on the purchase price of the real estate to 15 percent Non-resident tax. The tax of 15 percent applies only in certain areas in Canada.