In Toronto real estate, competition for properties is terribly fierce, and prices tend to be on the high side. Yet buyers still buy properties, while builders continue to build them.
Buying a piece of property only needs a certain amount of money. So you can buy a home for a million dollars if you can get a mortgage for that amount. But if you plan on making real money in real estate, you need to understand the risks. There are several kinds of risks, and Toronto seems less vulnerable to risks than other cities.
Tenants
Let’s say you’ve invested in an apartment complex in Toronto. Your biggest risk is your tenants, because “bad” tenants can cost you money. You may not be able to attract tenants to your apartments, or they may be the sort of tenants that can cause you headaches.
But if you have your apartment complex in the right areas in the city, you can attract young professional millennials who work downtown. They will need your apartment for convenience, and they’re the sort of tenants you’d like. They will be able and willing to pay top dollar for units as they have stable, well-paying jobs.
What this means is that you won’t have tenants that you need to keep pestering to pay the rent. They won’t be the type that may force you to go to court to get your unit back. They also aren’t the type that can cause and publicity for your property.
What’s more, they’ll move out in a few years as they advance in their careers and think about buying a home. With rent control laws in Ontario, you can only increase rent on tenant turnover. If you have long-term tenants, then you won’t be able to increase your rent to reflect current demands for apartments. But since your tenants will only be with you for a few years, you can make sure that your rent increases can stay current with up-to date prices.
Market
So how’s the real estate market in Toronto? That’s easy enough to figure out, as Toronto is the economic center of the whole country. It’s the city with the most jobs. Jobs drive population increases, and population increases lead to higher real estate prices.
The latest news revealed that Canada will accept one million immigrants over the next three years. Half of them are expected to settle in Toronto, which will increase the demand for real estate.
This doesn’t even consider domestic in-migration, when people settle into Toronto from other parts of Canada. Each person probably has their own reasons to live in Toronto, but they’re all great reasons for Toronto real estate investors.
This is a great city, no doubt about that. It’s wonderfully diverse, and that diversity helps the city to weather various economic troubles. People keep seeing the city is a terrific place to live in, with modern values, numerous job opportunities, good schools, and plenty of entertainment options.
All these are reasons why Toronto has more than a million people more than Montreal. Toronto has the largest city population in Canada, with 2.73 million people. The city with the second-highest population is Montreal, with 1.7 million.
Property Maintenance
There’s always a risk that your property can develop problems. Furnaces can get damaged, faucets will leak, electrical problems can arise, or even pests may be an issue. But Toronto is full of expert service providers that can help make sure that all your problems will get fixed properly. There are plenty of these service providers, and the competition among them keeps the service rates more affordable for you.
All these factors simply point out how Toronto real estate is the safer option for those who want to invest in real estate in Canada.