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Toronto is the most populous city in Canada and the centre of the Greater Toronto Area. A city where world-class business, shopping, education, dining, sports and entertainment rank as some of the world’s best, the Toronto skyline is also visually unique, boasting one of the most recognizable structures in the world: the CN Tower. 

Helping residents and visitors get around is a priority in Toronto. The city boasts one of the world’s most extensive transportation networks in the world.

After the uncertainty that Covid19 left in its wake, many investors have been sticking to the sidelines of the real estate realm and wondering if it’s still a good time to invest in Toronto condos. While market conditions are always a hot topic of discussion, the fact remains that real estate remains one of the most stable and lucrative avenues for investment. 

As far as the Toronto condo market, there are a number of reasons why this is an excellent place for investment, including: affordability, a stable market and increasing demand for rental inventory, reputation as a “world-class city”, and strict lending guidelines. 

Read on as we explore just a few of the reasons why it’s a great time to invest in Toronto condos. 

The downtown Toronto condo market is affordable 

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Okay, so “affordable” is a relative term - BUT - when you consider the potential for return, either via renting or resale, the condo market in Toronto is significantly more affordable than homes, for investors looking to lock in properties. 

In 2021, the trend for condo owners and renters needed additional space continued, adding to the steady increase in home prices (a significant trend over the pandemic). With so many home-seekers now finding their budgets cannot meet the prices of homes they are interested in, these prospective buyers have gone back to the drawing board and are now reconsidering the alternative of larger condominiums.  

This has contributed to even greater interest in new and existing condominium development in the city, both for investors and renters alike - meaning more movement on new inventory, more options for investors, and more availability for renters. 

As life slowly settles back into “pre-pandemic times” - investors and home-seekers alike are flocking back to the city, once again optimistic and eager to get back into city life. 

Toronto offers a relatively stable real estate market 

The ongoing demand for housing in Toronto includes a healthy rental market - which in turn means a stable income source for real estate investors. High prices for property in the city have many looking to rent, which results in a high demand for rental properties and an urgent need for steady release of new inventory.  

The cost of living in the city is not cheap, which has resulted in a buyer and renter pool that tend to reflect more stable and financially-responsible tenants in a higher income bracket. All of this is good news for investors and would-be landlords, who will in turn benefit from a lower risk of delinquency in payments from tenants. 

Toronto is a world-class city 

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The City of Toronto is one rooted in a diverse and globally connected network of talented and educated individuals. Half of the city’s residents represent visible minorities of over 200 distinct ethnic backgrounds and over 160 languages spoke. Progressive and inclusive, Toronto puts a high priority on its ability to offer an accessible and equality-focused place for residents and visitors. This pride in diversity and cultural sensitivity translates to a welcoming atmosphere for all. 

In The Economist’s Safe Cities Index for 2021, the City of Toronto took second spot amongst 60 contenders. In the Safe Cities Index, things like digital, health, infrastructure, personal and environmental security are measured.

From its people and its vast cultural landscape to its healthy economy and booming infrastructure - the relationship between Toronto’s residents and its real estate landscape is one of significant positive influence over the city’s stellar global reputation. 

Toronto’s strict lending practices 

Strict lending guidelines Canada-wide make it hard for just anyone to attain property. The qualifications and criteria that hopeful aspiring homeowners must meet is clear and challenging for many - and obtaining a loan comes with its own set of fixed and varying qualifications from lender to lender. With such strictest guidelines, however, comes the added assurance for investors that those looking to buy or rent their properties will generally be qualified and the transactions will be anything but rushed. 

With so many reasons to invest in Toronto’s thriving condo market, you may feel overwhelmed by the many options and obstacles ahead of you. This is where a qualified and experienced real estate agent can help. The right representative will be able to educate you on local matters, market conditions and more before helping you to narrow down your search and get started on your journey as an investor. 

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When it comes to the real estate market, if you’re waiting for that “perfect window” of stability, affordability and opportunity - you might just be waiting forever. Markets fluctuate and unforeseen variables can change the situation on a dime, but in spite of this, real estate investment remains one of the most stable and profitable forms of investment. And few cities offer more incentives for would-be investors than the world-class City of Toronto. 

Curious to know more about Toronto - and the many other communities that Connect Realty serves? Check out our Community Profile page for more information and be sure to sign up for our New Listing Notifications today!

Are you currently looking for your dream home? Get in touch with an experienced and professional REALTOR® from our award-winning team today. 

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