3 Essential Toronto Real Estate Facts for Investors

Investing in real estate can be a great way to quickly build your wealth while also creating a long-term investment project. Toronto real estate facts show that the Toronto real estate market is one of the most profitable for both citizens and foreign buyers. What is it about the Greater  Toronto Area that makes it a great option?

Investors considering the Toronto area for their first or next investment property should get to know these important facts about the region. These factors show just how strong the market has become—harnessing that energy properly can create great equity!

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1. Steady Stats: Price And Vacancy

Strong areas for long-term investments need to show steady results. In the case of the real estate market in Toronto, consistency has shown up in two major ways:

  • Few price fluctuations
  • Low vacancy rates

Few price fluctuations have occurred in regard to the prices of properties on the market in Toronto. Housing prices in Toronto are more consistent because there is a need for housing in the area.

How Does This Benefit Investors?

Demand consistently outranks supply, so prices are not volatile. This is good for investors because they can feel more secure when investing in the area. Investing in a market that has constant ups and downs can be stressful, as there is an increased risk of loss. That is not the case in Toronto.

2. Multiple Investment Angles

Another bonus of the Toronto real estate market is that there are many viable real estate investment types. While some markets heavily favor single-family homes over condos or rentals over flipping, it’s possible to find success with a variety of investment types in the Toronto area.

Some of the most popular investment types include:

  • Investment condos
  • Income properties
  • Flipping
  • Mixed-use properties
  • New construction

While the methods of finding success with each of these types differ, one point stands for them all: The Toronto real estate market is great for investors with a variety of interests.

How Does This Benefit Investors?

Investors who already own property may benefit from diversifying their investments to increase profits; this can easily be done in Toronto. Investors who are new to the industry might not know what type of investment will suit them best; they can try out different types of properties in one region in Toronto.

3. Solid Appreciation Values

Finally, investors considering the Toronto area should be aware that the market has strong appreciation values. Why is this?

Toronto is a rapidly growing city, and that growth has not slowed down over the last few years. While the population and demand for living in Toronto grow, there remains a limited number of properties in the region.

This causes high appreciation values, and those values are steadily climbing. According to the Canadian Real Estate Association, the market value of homes in the region has grown by an average of 8.3% annually.

How Does This Benefit Investors?

Consistently increasing appreciation values are great for investment risk management.

Buying an investment property is always a risk. You might not find the tenants you need or you might struggle to determine what renovations make the most sense for the area. In fact, there are many things that can go wrong!

Properties in Toronto, however, will increase in value simply by existing here. Investors who struggle to find the right business plan will still see an increase in equity after purchasing a property in Toronto. The risk of doing business in the region is lowered simply because of this consistent appreciation value.

FAQs: Toronto Real Estate Facts

Is Toronto Real Estate A Good Investment?

Overall, Toronto is known to be a good investment region thanks to high appreciation values, low vacancy rates, and the high demand for well-managed properties. It’s not as simple as saying that every single property in the area is worth buying, but there are many great rental areas and properties to be found.

What Is The Average Cost Of A House In Toronto?

The average cost of a home in Toronto is $1,022,138 as of recent data from the CREA. Of course, the exact price of any property is going to depend on size, location, condition, and a number of other factors that affect all real estate markets.

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Why Are Toronto Housing Prices So High?

Many investors new to the GTA region are shocked by the prices in the area. How are the property values so high?

Ultimately, the prices in the area are based on two main factors: demand and availability. Toronto has a limited land area, and much of that area has already been built on. This means that it’s not easy to add more volume to the industry. This leads to lower vacancy rates and less availability.

Altogether, this drives up the prices of housing in the region.

Should I Buy A House In Toronto?

Buying a house in Toronto for investment purposes is a relatively low-risk venture as long as you make smart choices in choosing the home style, location, and investment plan. Houses are likely to gain value, creating good equity over time. Should you choose to turn a property into an investment property, finding renters may be easier than it is in other cities, thanks to the high demand for rentals in the region.

Will The Toronto Real Estate Market Crash?

Some economists have predicted that the GTA real estate market, which has been steadily growing for years, will crash in the near future. These predictions were largely based on an overall recession, but have yet to come to fruition as the market continues to grow.

Should those predictions come true, real estate investment rental properties may still prove to be a solid investment choice. Those who choose to sell their homes or cannot afford to buy will likely look for rentals, keeping rental demand alive.

Toronto: A Market Worth Exploring

Getting into the Toronto real estate market as an investor is a great idea for many different types of investors. Whether you want to work with rental properties or flip renovations, there is a market for your investment style in the GTA region.

Remember to keep the following in mind as you create your investment plan:

  • Demand continues to rise
  • A variety of investment types are available
  • Appreciation values are consistently rising

Should you decide to consider investing in the rental market in Toronto, consider working with Buttonwood Property Management. Our reliable agency has qualified team members as well as property management teams that can help to make your investment dreams a reality!

Sabine Ghali
Sabine Ghali
Helping real estate investors build wealth over time

Sabine Ghali, Managing Director at Buttonwood Property Management, Award Winning Real Estate Broker and an Entrepreneur at heart. Sabine is on a mission to help investors create real estate wealth over time in the Greater Toronto Area. Sabine is published in a number of media outlets, including Toronto Star, The Globe and Mail, Toronto Sun, Entrepreneur, Forbes, and Gulf News, among many others.