Amid newfound momentum due to an upward trend in detached home sales, Toronto remains probably the best real estate investment destination in Canada, according to RE/MAX.
A large part of this stems from the city’s population growth – indeed, among the fastest in North America. Government figures indicated that Toronto saw the addition of more than 77,000 new residents from July 2017 to July 2018.
This had a significant impact upon the market’s condos, which have been continuously growing in value since 2015. The asset class has seen a 52% gain to date, according to the RE/MAX Pierre Carapetian Group.
“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.
Rental units have also enjoyed a resurgence, with the expanding population fuelling greater demand for this property type.
“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.”
In the case of apartments, a one-bedroom unit has an average rent of $2,259 per month, “more than enough to help you pay down your mortgage when you invest in a rental unit.”
“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 concluded.