Why it is a Great Time to Consider Investing in a New Condo for Sale
As the 4th most livable city in the world according to the Forbes list, it’s not surprising that Toronto is experiencing spiralling real estate prices. Steady economic performance, growing job opportunities and immigrant-friendly political climate are all reasons why more and more people from within and outside Canada are queuing up to make Toronto their permanent home. The issue for many people living here is that they are not able to achieve the one thing they badly want – to own a home. For young professionals, now is as good a time as any to think about their future and invest in a new condo in Toronto, before prices soar any higher and availability shrinks further.
What Makes it So Hard to Buy a Home in Toronto?
This growing attraction for living in Toronto has put an unheard of strain on its housing market. First-time buyers are finding it impossible to break in, given the dizzying, record-breaking prices. The demand-supply imbalance is so skewed that almost every house on sale is selling above the listed price. Not too long ago, there was a report about a house in the GTA being sold for $400,000 above the asking price!
Many, who were playing the wait-and-watch game in the belief that a crash was just around the corner, are not so sure any more. Many fear that they may have to postpone their plans of owning a home, or just give up the dream altogether. Experts believe, however, that the increasing population in the GTA does not justify the rising home prices. So why is buying a home turning into a pipedream?
Factors Making the Toronto Housing Market Red-Hot
The high demand for homes is a direct result of the eminence the city is gaining, but many other factors are also contributing to the surge in prices:
- Immigration: Many immigrants who come to Toronto arrive with the intent of settling permanently. It is no surprise that Canada has a home ownership rate of 70 percent. According to available statistics, one out of every two homes in the GTA is purchased by an immigrant. With the Federal Government’s intent to increase immigration targets, and 30 percent of that number coming to Toronto, it is unlikely that the housing market will cool off any time soon.
- Lack of Supply: Provincial policies aimed at curbing the urban sprawl have been at the root of shrinking land sizes for homes, especially low-rise options like single detached homes and town houses. Without sufficient land available to develop, low-rise options are going to become harder to find, thus spiralling demand for the existing ones. Those who had set their hearts on single detached homes are now being forced to look further away, outside of the GTA.
- Low Interest Rates: One of the reasons why many buyers are courageously entering the frenzied housing market is due to historically low interest rates. Many loathe the idea of paying high rent and feel that buying a home with low interest rates on mortgage loans is worthwhile, even if the home prices may seem ridiculously high.
- Foreign Buyers: There is wide speculation that foreign buyers have played a role in hiking home prices. Ontario Finance Minister, Charles Sousa has floated the idea of implementing a tax on foreign buyers similar to the one enacted in Vancouver. There has been heated debate on the issue, with many realtors claiming that the percentage of foreign buying is too small in Toronto to make a difference.
- Speculators: Speculators are those who purchase a house not to live in it, but to make a profit. Experts believe both foreign buyers and speculators are sizeable in number and have contributed to the steep increase in home prices. While the Toronto housing market has always been strong, prices rising year-on-year by as much as 30 percent is not normal, they argue. This, they put down not to regular demand and supply, but to speculative buying.
Owning a Luxury Condo in Downtown Toronto is a Sound Investment
Given the present situation, a realistic and rather attractive option for young professionals is to invest in a new condo in Toronto. There are luxury condos available in the vibrant downtown core that offers several benefits. You eliminate driving time and the long commute; plus you enjoy the sights and sounds of the charming downtown neighbourhood. For similar price points, you can take delight in a lifestyle very different from the one you might find elsewhere in the Greater Toronto Area. The Davies new condo project offers the allure of downtown living, along with the serenity of green spaces and safe neighbourhoods. Located right next to Robertson Davies Park at Avenue Rd. and Cottingham, this Toronto condo project offers tenants a chic downtown lifestyle with access to Yorkville’s trendy restaurants, bars, local schools, building amenities and proximity to TTC routes.
For more details on a new condo for sale in Toronto, contact The Davies at 647-360-9588 and schedule your appointment or register online for more information. Check out floor plans for our Toronto condos and discuss your options with our team.