Despite Naysayers, Toronto Real Estate A Profitable Investment
We’ve all heard doomsday reports about the Toronto housing market. Much like religious cults who predict the end of the world every few years, various reputable journals have been daily expecting the so-called Toronto housing bubble to pop for years. McLean’s, the Economist, the Wall Street Journal and Canadian Business have anticipated an imminent housing market crash since 2012. Yet, despite the naysayers, Toronto’s housing has been accruing value and the number of people buying houses increases year over year. Moreover, according to the Canada Housing and Mortgage Corporation (CHMC), we can expect the worth of GTA real estate to continue to increase in value for the foreseeable future. Toronto real estate is still a viable and lucrative investment, and the sooner you purchase, the larger your return will be in the long run.
In their Fourth Quarter 2016 Report, the CHMC issued a first-time red warning that the Toronto housing market is overvalued, but predicted that the average sales price of a home will continue to increase over the next few years, eschewing worries that the alleged housing bubble will burst. The bad news for potential buyers is that houses are getting more expensive, but the good news is that housing will continue to yield returns as an investment for the foreseeable future. Essentially, buyers will need more capital to purchase homes in the coming years, but that capital will generate profits. That means that right now is the perfect time to purchase property in order to see sizable, future returns.
In fact, those in the know are purchasing property in the GTA currently despite the habitual warnings that a market collapse is at hand. The Toronto Real Estate Board (TREB) reports that housing sales for October 2016 are up 11.5% from October 2015. The real estate market in Toronto and outlying areas shows no signs of slowing down, and with bidding wars increasing as the demand for housing increases, purchasing property in the future will be more difficult and expensive than it is at this moment. Rather than being fearful of the future housing market, potential home buyers should seize this moment as the most opportune time to buy property and expect their investment to increase in value over the next few years. A potential solution many homebuyers are embracing is co-ownership, or buying with a friend/relative.
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References:
CHMC Fourth Quarter 2016 Report
https://www.cmhc-schl.gc.ca/odpub/esub/68456/68456_2016_Q04.pdf?fr=1477498079518
TREB October 2016 Monthly Resale Housing Market Figures
http://www.trebhome.com/MARKET_NEWS/release_market_updates/news2016/nr_market_watch_1016.htm