by RESCO MIC
With the recent changes to the mortgage rules, many first time home buyers have been put in a position where purchasing a condo may be their best choice. And it turns out, that buying a condo in Toronto may in fact be a great long term investment.
For years Toronto has been in a never ending condo boom. But it appears as though we haven’t even scratched the surface.
Condos.ca recently looked at the condo market in Toronto and how it fares in terms of affordability compared to other cities around the world. Their research analysts did this by taking the price of the condo divided by annual income in order to get the number of years of average income it would take to purchase the investment.
Their research found that the Toronto condo market is not actually overinflated relative to other major cities. Looking at how Toronto compares to other major cities around the world, you can see how investing in a condo in Toronto may yield a great return over time.
Although prices have increased over the past decade, relative to 18 other world-class cities, a condo in Toronto is one of the least expensive.
According to Statistics Canada, Ontario’s population is projected to grow by 30 per cent, or almost 4.2 million, over the next 26 years, meaning that by 2041, the population of the province would be almost 18 million.
During this time, the Greater Toronto Area (GTA) is projected to be the fastest growing region of Ontario. There are projections that the population of the GTA will increase by almost 43 per cent, more than 2.8 million, which would make the population more than 9 million by 2041. This would make the GTA’s share of the population of Ontario almost 53 per cent in 2041.
The research from condos.ca further concludes that with this predicted population boom, condominiums are going to be a much needed source of accommodation, since there simply is not enough land to continue to develop freehold family homes in the downtown core. The research goes on to say that with steady population increase, matched with continuous new development across the entire GTA, they predict investing in the Toronto condo market to be a smart move with lasting value.
Of the members of the G8 – highly industrialized nations – the average square foot of a condo in Toronto is the lowest of them all.
Put into context, this data shows us that the market in Toronto may still have a ways to go, and room to grow.
Although the information in this commentary has been obtained from sources believed to be reliable, RESCO MIC does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. RESCO MIC will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided in this article is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.
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