Real estate investments in Toronto are some of the safest acquisitions anywhere in the country. For the past twenty-five years, real estate in Canada has increased in value at an average of 5% per year – but prime real estate property in Toronto has done better than that. The average price of a home in Toronto in 1996 was approximately $210,000. In 2011, that figure has increased to $431,000!
Several factors are contributing to the health of the current housing market. One factor driving the market is demand by young people, immigrants, and foreign investors. Current low interest rates also make housing purchases attractive. Historically, Toronto real estate has grown in value faster than the rate of inflation.
Despite today's economic climate, real estate looks likely to continue to be a wise investment. The province has frozen urban boundary increases, which ensures that land prices will rise, and this in turn will increase property values. As well, the cost of new housing is going up due to higher material and energy costs. This makes buying existing real estate more attractive.
Some potential investors are discouraged by the notion that a great deal of capital must be necessary to get into the housing market in Toronto. This is simply untrue. A recent article by the Globe & Mail outlines various types of property purchase options available in the Toronto area. For example, with as little as $400,000 to invest, one can choose from real estate options such as:
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An extensively renovated three-bedroom bungalow in Scarborough, with a backyard patio overlooking the ravine.
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A two-bedroom townhouse on King Street West, with a terrace.
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A two-bedroom/two-bathroom co-op in a boutique building, in Rosedale.
With about $720,000, the options are even better:
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A four-acre estate in Uxbridge with a wrap-around deck, a small pond and a trout stream.
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A new house in the western area of Toronto known as Alderwood, with four bedrooms, four bathrooms, on a huge corner lot.
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A two-bedroom condominium in the desirable Kingsway area of Toronto featuring ten-foot ceilings, a den, and a balcony.
For a more substantial investment of about $1.25 million, there are amazing options in almost all city neighbourhoods, including:
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A four-bedroom house on a half-acre in the Stonegate-Queensway area in the west end that includes an artist's cottage.
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A four-bedroom, three-bath house in North Leaside with an open kitchen and a two-car garage.
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An 1,800 square foot, three-bedroom condominium at the foot of Bay Street overlooking Lake Ontario.
In Canada, there are also many advantages to investing in real estate as opposed to other markets. There are various tax breaks, including a reduced tax rate of 50% of capital gain from investment real estate, and the deduction of investment property expenses against income.
Real estate investments in Toronto have been, and continue to be smart investments. See your real estate broker and your lending institution today to find out how easy it can be for you get into the Toronto real estate market.