Toronto has been moving ahead on a vast number of infrastructure projects; one of them being the effort to re-join Toronto with its waterfront. The venture will effectively open up the waterfront making it possible to use the land below. Another such project is the work on the Subway Relief Line.
These and other such projects will not only succeed in improving the infrastructure of the city but will eventually make investing in real estate an attractive proposition. If handled correctly, you may even be successful in purchasing a home without a realtor. Let us look at the reasons why Toronto is a lucrative real estate market.
- Not only a world class city but it has a growing population too
The population base in Toronto is definitely seeing the fastest growth in Canada. Where immigrants are concerned, Toronto has experienced twice the proportion at 8.4% as against Canada which has seen a 3.5% growth. By the year 2023, around two million more are expected. This is going to put a lot of pressure on the rental market in Toronto as skilled workers will require housing downtown.
- Toronto rental prices are high
Due to low vacancy rate and increasing rental competition, Toronto has seen increasing rents, in spite of the well-intentioned efforts by the Rent Control Act. Properties on transit lines are in demand as there is no need for a parking spot. Purchasing a small unit in these areas can be lucrative.
- Transit line property values
When you compare the property prices of units situated on Toronto’s transit lines you will find that they sell for higher rates than the ones that have less access to transit lines. A high resale price growth has been noticed in these areas. This trend is expected to continue in the future. The future may see a rise in prices in property situated on the transit lines. The additional property taxes will eventually fund the building of the transit line in future.
Comprehending the real estate market in Toronto
It is a good idea to take some time to understand the property market in Toronto before coming to a decision regarding purchase of real estate property. Taking area demographics into account is the first step.
Factors such as demographics and population growth can be considered as predictive aids that can assist a buyer or investor to work out the dynamics of the market. Consider for a moment, the fact that various factions of the population are generally motivated to relocate to a different locale because of the change in their circumstances such as getting married, getting a raise, starting a family or going into retirement.
For example, for people starting a family, there will be a demand for childcare facilities, schools and shopping centers. This in turn will lead to a higher demand for medical services.
While there is no denying that the overall future of real estate in Toronto seems bright, coming to the right decision can be tricky. Should you be apprehensive, it’s a good idea to reach out for help. Any investment consultant or a real estate agent will be more than willing to help you.