New Condo Investors Are Still Profiting During The Pandemic And Here’s Why
Sunday Jan 09th, 2022
The average price for condos in Canada is $693,691 and the average price for condos in Toronto is $956,428 - this means that condo investors made more money than any other type of investor.
There are many reasons why the recent pandemic has not impacted condo prices in Toronto and the GTA. One of the main reasons is that investors are diversifying their assets by investing in condos. Condos are considered to be a safe investment because they represent fixed assets with predictable rental rates, unlike stocks which can experience large fluctuations.
Investors have also been benefiting from the high demand for condos because of the limited number of new developments in this market. This means that buyers have to pay higher prices for properties that are available, driving up rental rates and purchase prices for people who would like to invest in this market.
So what’s better than investing your long-earned money into something that promises great returns? Let’s have a look at why you should consider investing in a condo.
Condo Investments: Why To Invest
The latest housing boom in the Greater Toronto Area (GTA) has seen the price of single-family homes skyrocket. But condos priced well below $1 million are still in demand, because they offer more affordable options for buyers.
- The government has given stricter guidelines on eligibility for first time buyers to purchase a home. This caused increased demand for condos as they became more affordable than houses in some areas, driving more people towards them.
- The COVID-19 was one of the most watched events this year, which acted as a catalyst for rising interest rates and rising prices of condos.
- These rising interest rates meant that mortgage holders had less debt on their mortgages, which led to rising home prices and investments in condominiums across Canada.
- Condo investors were not only able to buy cheaper than other types of investors, but they also were able to sell their condos for a higher value.
Is Condo Investment Still Worth It This Pandemic?
Condo investment is still worth it in this pandemic in the Greater Toronto Area. The prices are still high and the market is showing no signs of slowing down anytime soon.
Toronto has become one of the most expensive cities in Canada. A recent report by Royal LePage, home prices are up 8.6% year-over-year which is an increase from last year. This is a double digit increase for the past two years! It's understandable why many people are
asking themselves if condo investment is still worth it in this pandemic in the Greater Toronto Area?
The answer is simple: Condo investment will continue to be a worthwhile venture even with all these challenges because it will provide a good return on your investment due to its high appreciation rates, low maintenance costs and potential future value if you decide to sell it off for a higher price down the line.
So, is it still worth investing in condos? Yes, condo investment is still worth it. I can help you formulate a plan that aims to strategize to maximize your investments. With condos, prices are stable, the GTA has one of the lowest property tax rates in North America and condo investments provide higher ROI’s than stocks or bonds. Let’s talk.