Every successful person attains their goal with a dream and aspiration, but unsuccessful people doubt themselves, afraid of taking risks, overthinking and losing the opportunities eventually failing to march with the torch of success, the same applies to the real-estate industry too.
Sometimes your best investments are the investments that you hesitated to put money on, Did you know who grows very rich even during their sleep; Landlords.
If you’re looking to invest in the right property in Canada real-estate, then Congratulations!!! You’ve landed on the right website.
How is the Condominium market in GTA?
As per the recent news release from Lisa patel(President of Toronto Regional Real Estate Board) second quarter 2020 condominium apartment sales amounted to 3,459 – down 50.8 per cent compared to 7,024 sales in Q2 2019.
The number of new condominium apartment listings amounted to 8,717 in Q2 2020 – down 21.6 per cent compared to 11,114 new listings entered in Q2 2019.
It’s clear as water that there is a dip in condominium market sales in the Toronto area but once this pandemic situation eases, Increasing of inventory in the coming months will gradually change the game. With the overall housing market trending toward recovery in June, condo apartment sales will likely improve in the third quarter,” said Ms. Patel.
Despite market conditions becoming more balanced in Q2 2020, the average selling price for condo apartments was up 5.1 per cent compared to Q2 2019 to $619,707.
As per the below summary, City of Toronto tops the total sale with the no of 2,494 compared to other regions but if we compare it with 2019 stats its a decrease of 48.3 percent of total sales 4,824 which is recorded last year second quarter with the average selling price difference of 3.5 percent.
Buying a condo right now as an investment?
Warren Buffett once said, Investors should be “fearful when others are greedy, and greedy when others are fearful.”
The very short answer for the question is, it depends, because every individual’s situation is different this may be the perfect buying opportunity that you’ve been waiting for and its right buying opportunity for the handful of people this may or may not be suitable for you based on your current personal and financial situation.
A wise person takes advantage of this situation and invests wisely. Also, in the type of strategy you’re going for, your goal is many handful sold properties during the end of summer are sold under market value at that time.
So you can’t start striking a deal for right now but instead try holding property for a while, although the prices have come down and also have rental rates in the downtown core.
Then, who can buy a condo apartment now?
Personal Living, The prices are lower because it’s for you to live in personally. And as long as you have a stable income during this pandemic and mortgage that can cover the cost of buying a condo. But wait for the further price drop to strike the right deal, calculate your rent and if buying a condo reduces the rent of your calculated amount that you spent so far then it’s time.
Moving to a bigger condo, If you’re moving from a small condo to a bigger one you may have a difficult time selling the condo because now you’re adding to the bulk of inventory.
Demands for the rental is just as low as the demands on the resale property. Rental rates have dropped and the investment return is more or less about the same as it was before. Good news is, it’s easier to get into the market because the prices are comparatively lower.
So the strategy is buying into non-rent control property so that when this pandemic completely vanishes and lots of chances that rents will reinstate back in 1 or 2 years from now then increase the rent back to market rate to gain some good returns for the investment.
As we always say before, the real estate market trends are always changing and it impacts any kind of property. It is the individual’s responsibility to know the market, analyze the trends and make the right decision.