It’s time to build wealth through real estate in the Greater Toronto By Perrii Muthuraman
According to Urbanation, a condo research company, in the Greater Toronto, the average rent on apartments listed on MLS, in the second quarter of 2017 rose 11 percent year-over-year, past the $2000 –a-month-mark. Toronto tenants are facing the tougher situation. This news implies that there is a great scope for rental property investments. And that’s true!
At the same time, in the Greater Toronto, the downward trend in sales, as well as prices, started in late April 2017 continues till date.
GTA’s Average Price of all homes in April 2017 was $919,614 May 2017 $863,910 and June 2017 $793,915. In fact, in June 2017, the existing-home sales nosedived 37 percent on a year-over-year basis and the sales activity bottomed out at what turned out to be an l5-year low for the month. Simultaneously, new listings climbed 16 percent compared to a year earlier
However, home prices are still up 6.3 percent compared to June last year, and the recent declines have not erased all of the past year’s run-up.
Yes, as already said, the market is tough for new renters and on the contrary, the market is very favorable to buyers and investors.
Will Toronto see a long-term decline?
No, I don’t think so. The market may bounce back anytime. This happened in 2008 and will repeat any time before one year, I think. The decline we’re seeing now is all based on consumer psychology. It has nothing to do with any macroeconomic indicators or variables.
In this scenario, long-term rental is one of the best types of (real) investing. It is the most sustainable strategy and probably generates the most money as a long-term investment if you are willing and able to stick with it long-term.
This strategy is simple and here are the steps:
- Buy a property, after analyzing the numbers carefully.
- Rent it out with proper screening.
- Ensure financing and carrying costs (mortgage, taxes, insurance, and maintenance) are covered.
This strategy will provide cash flow in the short run and appreciation in the long-term.
If you are interested in following this strategy,
You must have
- A decent income – for your day to day living.
- A good credit – for getting a mortgage.
- Reasonable savings – to contribute as your down payment for the proposed purchase.
If you are wondering how you may contact Perrii at 416 473 6100 or email: firstname.lastname@example.org. Perrii is a Realtor, Investor, and a Financial Advisor; specializing in residential real estate and updating product and market knowledge continuously; member of Canadian Real Estate Association and Ontario Real Estate Association; also a member in good standing with Toronto Real Estate Board Multiple Listing Service.