2016 was an important year for the GTA housing market, but before I get into that I want to start with a story.
A friend of mine started looking for homes in downtown Toronto three years ago. He started with a fairly large budget but constantly decided to wait in the hope that the market would fall, or that he could make some sort of savings.
That never happened and now he has bought a home ⅓ the size of what he could have bought 3 years ago, and if he had bought that home three years ago the price increase would have been over 20% per year. It’s time to have a real discussion on homes the GTA.With sales rising from the previous year at an astonishing 11.8% (Toronto Real Estate Board), the Toronto area is definitely turning into one of the most sought out places to live.
That being said, this article’s purpose isn’t to convince you to move to the GTA, I like to think the local sights, entertainment and food will convince you on its own, the true purpose of this article is for investors.
More specifically, real estate investors, or even just anyone that wants to capitalize on a current trend in the Canadian housing market. Before we get started by putting half your savings into real estate, it’s important to understand the factors that led to this appreciation.
The first thing to note is the strength of the regional economy itself paired with low levels of unemployment and equally low-interest rates. Essentially, the GTA is becoming increasingly sustainable with higher levels of average income leading to increased livability. With employment rates increasing, more people have the money to spend (or save), and this paired with the relatively strong worth of the CAD leads to an increased state of demand across all markets in the GTA. For this reason, any up and coming entrepreneurs or even established business officials should target the Toronto area for it’s fruitful and up-and-coming market.
The next aspect to note will be an analytical response to the current politics in the western world. With the new US elections and existing politics in Canada, Canada is becoming more and more a replacement for the US’s lack of cultural equality. It is important to realize the psychological effects this transfer of power and way of thought has on the market itself. Customers now have a stigma against the US and therefore you could see a shift in investment further into the Canadian market.
If I had to make it dramatic, Toronto represents the future of Canadian investment.
No matter what your angle is for considering the Toronto area, you should keep in mind that time is ticking! Even as you read this real estate values are appreciating at an alarming rate, you better invest now before you miss the tide! What you do with this information is up to you, that being said I hope that you can take one thing away from this. By acting now not only will you see a return on your investment, but you can count on the GTA to provide you with a future.