The current real estate investment trend prevailing in 2018 regarding luxury condos is the ‘buy, hold, and sell’ approach. Everyone is in for the short-term gain and wants to reap the quick profits from such an investment strategy. But will the short-term investment approach truly work?
What Happened to Toronto Real Estate In 2017?
Canadians were excited by the sudden, shocking price growth in the real estate market in 2017. This lead to a widespread belief that short-term investments would be favourable. Individuals believed they could make a substantial profit by purchasing property, holding it for a few months, and then selling it when the prices were high. By doing this, they often escaped the consequences resulting from the eventual price crash. However, this strategy is unlikely to work in 2018.
What Should Be the Real Estate Investment Approach In 2018?
Real estate prices are levelling out in 2018 mostly due to the intervention of the government. Also, the yearly price appreciation of 20-30% is no longer expected to continue. This year, as per the predictions, the price increase will be around 5-10%. Therefore, capitalizing on the short-term gains is clearly not an intelligent investment strategy for 2018.
You need to look at the bigger picture and factor in the economic growth because these aspects are interrelated. In 2018, the expected economic growth in Canada is around 2.2% which will be reflected in increased job opportunities and a rise in immigration. Also, we must not ignore the fact that increased bank rates coupled with stricter mortgage approval rules have helped stabilize the Canadian real estate market.
After considering all the aspects and analyzing them, real estate experts believe that the short-term investment strategy is not a smart game plan for 2018. Instead, find a condo that you enjoy and make a long-term investment in the location and building.
Enjoy the Benefits of a Luxury Condo Near Yorkville, Toronto
At The Davies, we strive to provide the best luxury condos with well thought out designs, remarkable facilities, and every other comfort required for living a convenient life.
If you are looking for a new luxury condominium in the Yorkville neighbourhood of Toronto for your next home or investment purchase, call us at 647-360-9588 to schedule an appointment with our sales team. You may also register online with us for information about our floorplans and pricing.