Is it Worth It to Invest in Real Estate in Toronto?

Is it worth It to invest in real estate? According to Elevate Partners, as Toronto’s 2023 Housing Action Plan keeps doing its thing, investment-grade homes will become the real MVPs for the next 10 years. So, expect those investment-grade cribs in Toronto to crush it, bringing in mad rent and scoring some sick price hikes in the long run.

Still wondering if you should throw your hard-earned cash into the Toronto real estate hustle? Is investing in the 6ix’s real estate scene the key to unlocking your financial dreams or just another overhyped trend? Whether you’re sipping your oat milk latte in Liberty Village or crushing it in a co-working space in Leslieville, we’ve got the insights to help you decide if investing in Toronto real estate is worth it.

Is Toronto Real Estate a Good Investment? 

Yes, Toronto’s real estate investment scene is a definite win, thanks to four key reasons:

1. High Equity Gains

Condo prices in the Greater Toronto Area have surged by 44% since the 2017 housing peak, propelled by the segment’s increased accessibility compared to other property types, according to recent data from tech-enabled brokerage Properly.

2. Stable & Growing Rental Demand

Despite a temporary dip due to COVID-19, rental demand is bouncing back, especially with a surge in immigration and students returning. As per the National Rent Report for July 2022, the average rent in Toronto reached $2,463 in June, marking a 20% annual increase.

3. New Transit Plans

Toronto’s upcoming transit projects, particularly near existing and future stations, are a boon for property values. Investing in neighbourhoods connected to these plans could be a smart move.

4. Canada’s Stringent Lending Practices

Canada’s robust guidelines, including the Stress Test, make real estate investment secure. With a delinquency rate of just 0.25% as of 2021, Canada’s financial stability ensures a safe long-term investment.

Is it Wise to Invest in Condo in Toronto? 

Investing in a Toronto condo, particularly in a city like Toronto, presents a lucrative opportunity. Condo values have consistently demonstrated an impressive annual appreciation, often exceeding 5% to 6%.

Toronto is stepping onto the global stage alongside major cities such as New York City and San Francisco, but property values here still lag significantly behind theirs. While we might perceive our condo prices and real estate listings in Toronto as high, they have a considerable distance to cover before matching the price levels of these other major urban centers.

Is It Good to Buy a House in Toronto Right Now? 

According to WOWA.ca, the Greater Toronto Area (GTA) housing market maintained its steady growth pace, with the average house price reaching $1,125,928 in October 2023. This reflects a 1% uptick from the previous month’s average of $1,119,428 and a 3% increase from the same period last year when the average stood at $1,089,428.

In the past two months (September and October), GTA home prices have surged by 4% despite the market residing firmly in deep buyer’s territory. The current sales-to-new-listings ratio (SNLR) for this month is 32%, falling below the 40% threshold for a buyer’s market.

A buyer’s market signifies a surplus of properties available compared to buyers, providing them with more negotiation power over prices and terms. Home prices persist in their upward trajectory, underscoring the resilience of Toronto’s robust housing market.

Toronto’s real estate market is like the city itself – dynamic, ever-changing, and full of surprises. Will you ride the wave of Toronto’s market, or is it time to shuffle the cards and reconsider? Make your move wisely.

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