Despite suffering some declines, Toronto real estate has proven to be a remarkably resilient and lucrative investment destination, according to RE/MAX.
“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 Pierre Carapetian Group stated.
The analysis cited the region’s population growth as a major driver of the phenomenon. Toronto boasts of some of the fastest growth in North America, with official numbers indicating that the city had more than 77,000 new residents from July 2017 to July 2018.
In general, multi-family assets have enjoyed a resurgence. Rental properties have particularly benefited from this influx of fresh consumers, many of them with significant purchasing power.
Apartment units currently go for an average rent of $2,259 per month.
“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.”
Condos have continuously grown in value since 2015, and the property type has seen a 52% gain to date.
“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.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate