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Explained! Why is Toronto’s Condo Market Hot in 2022
In a recent report, a big real estate player reveals that home prices in Toronto may drop by 20% in the near future. However, May 2022 outcomes suggest an increase of 10%.
One area of the city’s real estate world that has been predicted to be the dark horse is condominiums. Several realtors and big names from the industry predict that pre construction condos in Toronto have the potential to attract more people in 2022 as many buyers are turning away from detached homes, thinking they are an unstable investment option.
The Revival of Condos
The COVID-19 pandemic affected all sectors worldwide, and the real estate industry took a big hit. Since its beginning, the pandemic has been impacting potential home buyers and their decisions.
In several reports, it was revealed that home buyers and investors were hesitating to make an investment. The situation was the same in Toronto.
However, things have started to change in 2022. It seems that the city’s real estate industry has started a new phase. And, in this revival, pre-construction condominiums are playing a noticeable role.
Today, investors consider condos a safer, more affordable, and easier investment option than detached homes. For example, the average cost of a condo in Toronto is $743,278 – a much lower price than the average cost of $1,807,983 that one must pay for a detached home in Toronto.
Experts say condos are more cost-effective investment opportunities than freehold townhomes around the GTA. They become a lucrative investment when you invest in pre-construction condos.
Benefits of Pre Construction Condos
A pre-construction condominium is a unit under construction. When you buy such a condo, you invest in an option that is being developed or will be developed in the future. It means you don’t get the possession of Condos Investment in GTA right away.
However, there are a number of benefits of investing in a pre-construction unit. They include:
It is one of the biggest factors increasing the popularity of pre-construction condos. When you buy an under-construction unit, you get it at the current market price. Now, suppose you get the possession three years from now. That time, if you wish to sell the condo, you do that at that year’s market price.
The deposit program around a pre-construction condo is both interesting and effective. Usually, it ranges between 15% and 20%. And, it can be spaced out in multiple installments over several years. All this means is that you pay less money when buying a pre-construction condo and sell it at a higher price in the future.
Conventionally, investing in real estate is a hands-on experience. From management to maintenance, there are many factors that you – as an investor – need to take care of.
On the other hand, investing in a pre-construction property means you get a hands-off experience. In this case, the development phase is handled by the developer behind the project. The only thing that you have to take care of is that your payments or installments are done in time. All other things are managed by the developer.
Toronto’s condo market holds a lot of potential. From new home buyers to investors, anyone can reap the benefits of the city’s real estate opportunities. Whether you want to invest in a pre construction unit or a condo assignment for sale in Toronto, there’s a well-defined process that everyone in the sector follows.
For example, when you are buying a pre-construction unit, there’s a 10-day cooling-off period. It means you have sufficient time to gather information on your potential condo unit. You can talk to your financial adviser or attorney to learn perks and risks associated with the project.
All these benefits come together to make new condo developments in Toronto a lucrative real estate investment opportunity.
Coming Trends in Toronto’s Condo Market (2023)
Experts and investors have mixed expectations from Toronto’s real estate industry. They don’t have high hopes from the city’s conventional or detached homes. It is because in the last few weeks, the median home price in the GTA has dropped by around 8.9%. Many of them believe pre-construction townhomes 2023 may follow the same trends.
However, everyone has high hopes from pre construction condominiums in Toronto and its nearby cities. Several renowned builders from Canada and other parts of the world are investing in condo projects in the city. Apart from that, potential investors see a great investment opportunity in pre-construction condos, which offer benefits in the long run.
In the End
If you are thinking of investing in one or more pre-construction units in Toronto, today is a good time. The industry is expected to grow more in the future. Also, there are many exciting opportunities that may help you get a unit of your dreams.
But, before investing in a unit, collect information about it and use the CMHC mortgage calculator to find out a budget that suits you.
All the best!
- new condo developments in Toronto
- pre construction condominiums in Toronto
- pre-construction townhomes
- Toronto’s Condo Market
