The Toronto property market has boomed over the last two decades. Anyone living in the area has seen their property value rise dramatically. However, is there still room for growth? Is investing in the Toronto market still a viable option for someone looking for a secure investment? The answers to those questions are a bit complicated.
Given the steep rise in Toronto home prices, first time buyers and average homeowners have become priced out of the hot and highly competitive market. Foreign buyers helped increase home values but that just made it harder for ordinary people to buy into the market. With the introduction of legislation curbing foreign property investments, property values have begun to drop and the Toronto real estate market has cooled considerably since the fall of 2017.
Given the cool down and drop in prices (in some areas by 22%), now is actually a good time to investment in the market. Yes, it is going through a correction at the moment, but if you are someone looking to buy a home and put down roots, regardless of whether the market corrects some more, in the long run, the property value will increase and if you can get in now with the lower prices, it is a very good thing.
However, there is the spectre of further drops in price given the recent political climate the threat of NAFTA falling apart – something that would definitely hurt the industry. So, if you are an investor looking to flip a property, then now might not be the best time, unless you are willing to risk further price drops from the time you purchase to the time you flip.
So, there are pros and cons to buying into the Toronto real estate market in 2018 – and they all depend on whether you are an investor or whether you are in it for the long-haul.
Given the steep rise in Toronto home prices, first time buyers and average homeowners have become priced out of the hot and highly competitive market. Foreign buyers helped increase home values but that just made it harder for ordinary people to buy into the market. With the introduction of legislation curbing foreign property investments, property values have begun to drop and the Toronto real estate market has cooled considerably since the fall of 2017.
Given the cool down and drop in prices (in some areas by 22%), now is actually a good time to investment in the market. Yes, it is going through a correction at the moment, but if you are someone looking to buy a home and put down roots, regardless of whether the market corrects some more, in the long run, the property value will increase and if you can get in now with the lower prices, it is a very good thing.
However, there is the spectre of further drops in price given the recent political climate the threat of NAFTA falling apart – something that would definitely hurt the industry. So, if you are an investor looking to flip a property, then now might not be the best time, unless you are willing to risk further price drops from the time you purchase to the time you flip.
So, there are pros and cons to buying into the Toronto real estate market in 2018 – and they all depend on whether you are an investor or whether you are in it for the long-haul.
