In today’s real estate market, it can be a hard to decide whether to keep investing in the condo market or to direct your investing elsewhere. Current trends are actually pretty decisive when it comes to the condo sales market, despite the real estate being hard to predict at times. Recent and current trends make it appear that the Greater Toronto market is a can’t miss-opportunity.
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As the immigration rates to the GTA are continuing upward and housing demands are increasing- particularly with multi-home units and condos- we can clearly see that condo investing is still the best choice in the real estate market. A recent report put out by PwC shows that while there is always some uncertainty with real estate investing, the condo market is displaying some very positive growth.
The condo sales market is on an upswing
With an increasing number of millennials entering the housing market and single-family homes being both too big and too expensive for these newcomers, condominiums are proving to be the clear choice for their initial purchases. This tells us that, as investors, positioning ourselves to own the condos that millennials are searching for is a wise investment move. Whether the aim is to own the condo and offer it as a rental unit or to buy it and set it up as a flip, buying condos is still very much a good investment.
Along with millennials entering the housing market, immigration into the Greater Toronto Area is at a 15-year high, meaning that in general there are more people looking to buy and rent homes. With the average age of home buyers decreasing they are looking for smaller, cheaper homes as a way to break into real estate.
Condo appreciation is high
With so many people looking to break into the housing market but not being able to start with a single-family home thanks to high cost, the appreciation of your investment condo will likely rise. The study by PwC actually indicated that over the next 2 years the market will flip from a buyer’s market to a sellers’, and selling prices will jump again- getting almost on par with prices in Vancouver.
Buying pre-construction condos in communities within the GTA but not directly in the Toronto core will help a savvy real estate investor prepare for the likely increase in condo rentals and purchases throughout the next few years. While there are naturally many perks to buying pre-construction, the appreciation of the unit is one of the top reasons to invest early.
Multi-family homes are a good bet
As an alternative to condo investing, multi-family homes are looking to be a positive investment, as well. Many people moving to the GTA for the fist time will likely be overwhelmed and the price market for a first home, so many be looking to rent a unit in the meantime. Owning a multi-family unit opens you up to a landlord/tenant situation so it might not be the best kind of investment for you, however if you have the ability to purchase a larger property like this it might be worth considering.
Communities outside of the GTA are booming
With couples starting families younger, many are starting to look outside of the busy, urban metropolis’ they flocked to in their younger years. Communities like Burlington are starting to build several condo developments in preparation for the influx of these families, making units in a property like Valera by ADI a great investment choice for both the seasoned and the amateur real estate investor.
Condo investing is a wealth-building investment!
While the real estate market can never be completely certain, it’s possible to watch trends and use related statistics in order to create a general idea of where the market is headed. Thanks to the study by PwC we can see that the condo investment market looks to be quite stable, making it a good investment with a likely high appreciation value. The volume of both the new immigration and the number of first-time home buyers will ultimately help to keep the condo market going strong.