Are Condos A Good Investment?
Thursday Mar 24th, 2022
Are Condos A Good Investment?
Most people look at property in terms of an investment opportunity. For those looking to purchase a second home or safely invest additional funds, it makes sense to consider a condo investment in Toronto. For others looking to settle in a condo, the property can double as a future investment they can bank upon in tough times.
A condo (short for condominium) is a sizable multi-unit property developed singularly but sold in individual independent units. Compared to a typical apartment, condominiums offer much more living space and luxurious facilities that are hard to match by other types of residences.
Condo living is truly living in luxury. Moreover, the consequent culture of work-from-home jobs also demands larger accommodations that can easily incorporate a home office.
It's The Perfect Time To Invest In A Toronto Condo
The prices of condos are rising slower than apartments. The relatively lower prices for condos make them an attractive investment destination for the long-term future. Take advantage of the current prices and the current lower property tax in force.
The pandemic has pushed for bigger living spaces, resulting in shooting apartment prices. Presently, there isn't a significant difference in price between an apartment and a condominium. Therefore, for a long-term investment, it is recommended to buy a condo over an apartment at this time.
Condos are favoured properties not just for investors and buyers but also retired individuals and young adults. The increase in interest is due to the level of facilities and the complete security these condos offer residents.
Luxurious facilities like pools, gyms, parks and social spaces turn condominiums into a residential paradise. Moreover, high-value condos provide an excellent vacation spot for the entire family, wherein you can beat the summer heat and urban sprawl.
Canada has a stated policy of providing immigration to 3,50,000 people every year for the next fives years. In the later years of immigration, most immigrants will settle in large cities of Canada where they are more likely to find due to the abundance of job opportunities and need. Toronto is one such excellent destination for immigrants and has become a world-renowned melting bot of cultures.
However, Canada has not updated its growth plan to match this increased flow of people. While various immigration formalities have been paused, there is an expected rush of new people looking for residences when the government inevitably resumes immigration.
Today, condos are the first-choice residence amongst immigrants, primarily due to their affordability. Condominium developers are not constructing many freehold houses but focus on condos as the ROI on these is much better.
Recently, the situation has caused most banks and mortgages to offer an interest rate as low as possible compared to rates prevailing four decards ago, which were upwards of 20%. In the early 2000s, you would be lucky to find an interest rate of around 6%. The extra interest paid on your capital is easily compensated by the quick rise in the price of your condo.
The Rising Price Of Rent
The influx of immigrants into big cities has resulted in a rise in demand for rented accommodations. However, the pace of construction of newer homes hasn't been able to keep up with demand. The mismatch between demand and supply caused the rent of already condos to increase. Moreover, rising incomes will provide the fuel for the rents to grow in the future, in the long run, making today the perfect time for a Toronto condo investment.
Upside In The Economy
The lockdown caused due the pandemic resulted in the canning of demand. However, nearly two years later, the economy seems to be recovering quickly, with the current data revealing a rise in consumer confidence with increased spending. As a result, the current environment offers an excellent opportunity for condo investments.
Take advantage of the current 10-20% dip in the prices and begin your Toronto condo investment today.
At Toronto Condo Team, our dedicated real estate brokers provide excellent services and bridge the gap between prospective clients and their dream condo for sale. Whether you are shopping for your ﬁrst condo or are interested in learning more about a Toronto condo investment, our team works with you throughout the entire process.