New Report Says Toronto’s Housing The Least Affordable In Canada

Hi There,

A new report has just been released by The Royal Bank of Canada (a.k.a. “RBC”)

In this report, RBC states that “Toronto’s housing market is the least affordable in Canada.”

RBC, Canada’s #1 Bank is a reputable source. This leads me to believe that this report is accurate.

Having said this, it is always important to do your own due diligence and always ‘question’ the information that is presented to you by the media.

I just showed a client of mine a 3 bedroom, detached home in one of the most high demand and up and coming areas of the City.

This home just sold for $685,000. (Canadian Dollars)

Opportunities still exist for people to buy detached homes at reasonable prices in Toronto.

You just need to know where to look for these opportunities.

If you are a real estate investor looking to purchase your first rental property, you should also seriously consider condos in Toronto.

Generally speaking, condos are a more affordable investment as the price levels are still lower than detached homes.

Where every you end up investing, make sure that you don’t waste any time.

The best time to buy real estate was always yesterday

Happy Investing!

-Neil

Tags: Buying a condo in Toronto, Canada  |  Buying a condo in Toronto for investment  |  Investing in Toronto Real Estate  |  Buying a condo in Toronto Canada  |  First time condo buyer in Toronto Canada.

Toronto’s Real Estate Boom: A Chinese Perspective

Hi There,

While Canadians complain about the inflated real estate prices in Toronto, try buying a home in Shanghai.

There, a shabby 400 square foot condo goes for $1.6 million.  You need parking?  No problem!  It can be yours for an extra $60,000.

The real estate market is so hot in one of China’s richest cities, the average price for new homes has risen by 30% in the first 3 quarters of 2016.

In Beijing and Shenzhen, the real estate market has increased so much that it has made these cities two of the most expensive in the world to buy a home.

The government in Shanghai has tried to make it harder for existing property owners to purchase another property.

They have also tried to slow the market by increasing downpayment requirements.

For many Chinese, buying a house overseas is seen as a crucial investment in the next generation.  

Canada is on the list of preferred countries to invest in for the Chinese.  In fact, Canada ranks as #3, behind The United States and Australia.

Although Canada implemented a 15% tax for foreigners buying real estate in the Metro-Vancouver Area, some experts predict that this will have no long term impact on the marketplace.

Since property is the preferred asset class for Chinese people, many observers forget that only 15% of Chinese invest in the stock market.

With the Chinese as the fastest growing segment of global property buyers, this means that many of them will be investing in Toronto real estate.

Many of them will be buying a condo in Toronto for investment.

If you are a real estate investor, or someone who is looking to buy a home to live in, you should do what the Chinese are doing and buy a condo in Toronto Canada.

It does not matter if you are a first time condo buyer in Toronto Canada.  They City of Toronto is forecasted to continue to grow in population.

As the City’s populations grows, so will the demand for the real estate.

Toronto recently overtook Vancouver as the top city in Canada for Chinese buyers, according to the website Juwai.

Buying a condo in Toronto Canada is simply a smart investment.

Who knows… maybe one day a 400 square foot condo in Toronto will be worth $1.6 million just like in Shanghai.

Happy Investing!

Neil

Source:  Canada’s Real Estate Boom: A Chinese Perspective

2017 Toronto Real Estate Market Outlook

Hi There,

Lots of people have been asking me what I think is going to happen to the Toronto Real Estate Market in 2017.

If you have read some of my other blog posts, you know that I think investing in Toronto real estate  is a great idea, especially buying a condo in Toronto for investment.

If you are a first time condo buyer in Toronto, Canada or a veteran real estate investor looking to buy a condo in Toronto, Canada, I have a PODCAST that you need to listen to.

In this PODCAST I discuss what the real estate market in Toronto will look like in 2017.  I also talk about how buying a condo in Toronto Canada is an excellent move to make.

For my personal outlook on the Toronto Real Estate Market in 2017, and how you can profit from investing in this market, listen to my PODCAST called  ———->  2017 TORONTO REAL ESTATE MARKET OUTLOOK

 

Happy Investing!

Neil

 

How To Make A 26.1% Return Investing In Real Estate In One Year

Hi There,

I hope you are doing well.

In today’s blog post, I am going to walk you through how you can make a 26.1% return on your money investing in real estate.

I recently recorded a PODCAST called, 3 Reasons Why Buying A Rental Property Is Better Than Investing In The Stock Market.

In this PODCAST, I talked about 3 ways in which you can make a ‘return’ buying and holding real estate.

These 3 ways were:

Cash Flow

Mortgage Paydown

Property Appreciation

To illustrate to you how you can make this type of return on your capital, I am going to take the same example I spoke about in the PODCAST.

Let’s assume that you are a new real estate investor and you are interested in buying your first rental property.

You purchase a property for $450,000.

Let’s assume that you are purchasing a property in the Toronto or Greater Toronto Area real estate market.

As such, you provide a 20% downpayment to purchase the home, which equals ($450,000 * 20% = $90,000)

Therefore your downpayment is $90,000.  Don’t forget this number.  We will re-visit it later…

The property produces a $500/month net cash flow. (This is on the high side for Toronto, but I am using easy math to help illustrate this example)

You annualize your cash flow by multiplying $500 by 12 months.  This gives you ($500 * 12 = $6,000)

Therefore, you have $6,000 annual cash flow from the property.

Since you have provided a $90,000 downpayment, and the purchase price of the home was $450,000, this leaves you with a $360,000 mortgage.  ($450,000 – $90,000 = $360,000)

Now let’s assume that you obtain a first mortgage in the amount of $360,000 at a 2.5% interest rate and amortized over 30 years. (What is Mortgage Amortization)

Using a mortgage calculator, we can figure out that your monthly mortgage payment would be $1,422/month.

Now here is where we use some creative math.  Let’s assume that 50% of your monthly mortgage payment of $1,422 is principal, and 50% of the payment is interest.

If you use a mortgage calculator for this, you will see that the breakdown is not actually fifty-fifty.  However, I am using 50% just to make the math easy.

As such, 50% of $1,422 is $711.

This means that the mortgage amount of $360,000 is paid down by $711 each month.

We want to know how much the mortgage is paid down annually (or at least in the first year), so we take $711 and multiply it by 12 months, which gives us $8,532.  This number is also important.  We are going to re-visit it shortly.

If the property that you purchased for $450,000 appreciates at 2%, that would mean that the property would go up in value by $9,000 in the first year.  We get this number by taking $450,000 and multiplying it by 2%.

I am using 2% as an extremely conservative figure.  The real estate market in Toronto and the Greater Toronto Area has far surpassed this figure over the past several years.   

So now we take our return on our capital from year one.

We have $6,000 annual cash flow

We have $8,532 annual mortgage pay down

And we have $9,000 property appreciation in year one.

Now we add up all of these numbers…

$6,000 + $8,352 + $9,000

This equals…

$23,532

We now take this amount (the total amount you have made in year one), and divide it by your initial investment of $90,000. Which gives us…

$23,532 / $90,000 = 26.1%

So as you can see from the math above, you can make a 26.1% return on your investment (in year one) by investing in real estate.

 

Happy Investing!

-Neil

 

 

3 Reasons Why Buying A Rental Property Is Better Than Investing In The Stock Market

Hi There,

I hope you are doing well.

Many people believe that the best place to invest their money is in the stock market.

I disagree.

Investing in real estate, and buying a rental property allows you to obtain a much better Return on Investment.

If you are someone who is looking to buy their first rental property, please take a moment and listen to my PODCAST.

In the PODCAST I talk about how you can benefit from:

A) Cash Flow

B) Mortgage Pay down, and;

C) Appreciation.  

I named the PODCAST:

3 Reasons Why Buying A Rental Property Is Better Than Investing In The Stock Market.

In the PODCAST I talk about the Toronto real estate market and Toronto Condos as well.  Having said that, this investment approach can apply to any City that is suitable to invest in.

You can listen to it by clicking on the play button below:

I hope you enjoy the PODCAST.  It is worth listening to!

Happy Investing!

-Neil

3 Reasons Why Buying A Condo In Toronto Is The Worst Investment You Will Ever Make

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Hi There,

I hope you are doing well.

If you are a new real estate investor looking to buy your first rental property, it is crucial that you make smart financial decisions as you navigate the Toronto real estate market.

It is important for you to know that buying a condo in Toronto can be a REALLY bad investment.

It can be a terrible investment if you don’t know what you are doing, and if you forget to do 3 major things…

To find out the 3 reasons why buying a condo in Toronto is the worst investment you will ever make, you can listen to my PODCAST, by pressing on the “play” button below.

Happy Investing!

-Neil.

 

 

How To Find A Tenant For Your Toronto Condo

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Hi There,

I hope you are doing well.

If you are a new real estate investor looking to buy your first rental property, there are 2 things I would recommend to you:

A) Consider purchasing a condo in Toronto.

B) Listen to my new PODAST called, HOW TO FIND A TENANT FOR YOUR TORONTO CONDO.

You can listen to this PODCAST by clicking on the “Play Button” below:

 

The reality is that Toronto condos are a property type in which new and experienced investors are placing their money.

The Toronto real estate market is a great place to invest.

I have personally invested here, and plan to continue investing in the City of Toronto.

I hope you enjoy the PODCAST.

Happy Investing!

-Neil.

3 Reasons Why Investing In Toronto Condos Will Make You Rich

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Hi There,

I hope you are doing well.

I always get asked by new real estate investors where they should buy their first rental property.

There are many cities and countries you can potentially invest in.

My favourite city to invest in is Toronto.

Here is why:

 

A)  Lack of Supply

If you are not familiar with what is going on with the Toronto real estate market recently, let me tell you.

Prices of properties have been going up at record levels.  This is especially true of “detached homes” both in the City of Toronto, and in the Greater Toronto Area.

Due to the fact that prices are going up with Detached homes, this is now having an effect on the prices of condos in Toronto.

Fewer people can afford the price of detached homes now, so more people are gravitating toward condos.

The lack of supply with detached homes, will cause condos to increase in price as well.  There will be more and more people looking to buy condos in Toronto as the real estate market continues to rise.

Which means that a condo that you buy today will be worth more in the future.

 

B) People Are Coming

If you don’t know this, let me tell you.

People are coming from all around the world to live in Toronto, and the surrounding areas of Toronto.

Toronto is a beautiful and vibrant multi-cultural city.

As more people continue to come to the Toronto area, this will cause there to be more demand on the housing in Toronto.

With more demand, come increasing prices.

Which again means that if you buy a condo today, it will be worth more in the future.

 

C)  Toronto Has Jobs

Toronto is the financial “capital” of Canada.

Major banks, Insurance Companies, and Hospitals are big time employers in Toronto.

Not to mention, start up companies, and marketing firms…

Anyone that is familiar with Toronto knows that people commute from all over Ontario to come into Toronto to work.

People drive or take the train to enter the city.

Due the fact that there are so many jobs in Toronto, and that people travel into Toronto to work, this proves to be favourable for the real estate market.

Often people want to ‘ditch’ the commute, and live closer to their jobs.  Especially younger generations.

Lots of people don’t like spending so much time in the car, and want to have more free time.

This is the reason why people move into Toronto, to be closer to their jobs.

This in turn, increases demand for Toronto real estate, as more and more people want to live in the City.

Once again, with increased demand, prices of condos will be going up in price.

Which means that a condo that you buy today, will be worth more in the future.

 

What Do You Do Now?

We know that people are coming to Toronto, and there is a lack of supply of housing.

We know that this is going to cause condos in the City to rise in price.

So what do you do with this information?

You can:

a) Do nothing about it.

b) Buy a Toronto condo as your first rental property.

The choice is yours.

I know what I would do………….

 

Happy Investing!

Neil

 

 

 

Toronto’s Middle Class Is About To Be Priced Out Of The Condo Market

Hi Folks,

I hope you are doing well.

With real estate prices rising to record levels in the Toronto area, some people are beginning to speculate that condos will soon be priced so high, they will soon be out of the reach of the average buyer.

Could this actually happen?

Seriously, could condo prices rise high enough, that the majority of people will not be able to buy one?

In my personal view… it could happen.

Daniel Tencer of the Huffington Post writes,

“Single-detached home prices in the city of Toronto jumped by 32.3 per cent in a year, and now average $1.35 million. In the surrounding 905 region, detached homes jumped 25.5 per cent and are now on the verge of hitting the $1-million mark, at $957,517.”

For those of you that are not familiar with the Toronto area, the “905 Region” consists of cities surrounding the City of Toronto.

In his article, Daniel mentions that as real estate prices continue to rise, single detached homes remain far out of the reach of most of Toronto’s first time buyers.

Further, Daniel states that:

“Prices for condos in Toronto jumped 13.5 per cent (since 2015) to $471,256.”

Not only did condo prices jump in Toronto, they also went up in price in the “905 Region”.  According to Daniel:

“…the average condo there (in the 905 Region) jumped 18.9 per cent in price in the past year, to $374,792.”

So what does this all mean?

It could mean that Toronto’s home ownership rate is going to start to drop, as some experts have predicted already.

Just take a look at this.

This is the “Average Annual Toronto Sale Price” dating back to 1970.

 

average-annual-toronto-mls-sale-price

 

If prices continue to rise in this manner, as you can see in the chart above, this will result in more people becoming renters for life, unless a major correction in price occurs.

This is where the opportunity lies.

If there is one piece of advice I can give you, it is this…

BUY A CONDO IN TORONTO NOW !

Condos are still affordable and they are a great investment for new real estate investors, looking to buy their first rental property.

Or, they can be a smart investment for the veteran real estate investor, looking to purchase his/her 4th property.

The tenant profile (as long as you do your due diligence) is excellent in Toronto.

I own condos in Toronto myself, and they have been a fantastic investment.

But Remember…

Don’t delay.

Buy now and prosper.

If not, you may become a statistic.

You may be priced out of the Toronto real estate market, like so many other people who did not take action.

 

Happy Investing!

Neil

 

 

 

 

 

 

 

 

 

 

 

Why You Need To Invest In Toronto Real Estate Now

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Hi There,

I hope you are doing well.

If you don’t know what is going on with the Toronto real estate market, it is time I should fill you in.

To simply put it…

The Toronto real estate market is on fire.

Thus far in 2016, Toronto has experienced significant demand for detached homes.  At the same time there has been a lack of inventory available.

As such this has caused a supply and demand issue, in that there are so few listings available for sale, the demand for these homes is driving prices up at record levels.

If you are from the Greater Toronto Area, or have knowledge of the real estate market there, this is NOT new news for you.

Whether you are from the Greater Toronto Area or not, this could be a great opportunity for you.

Many experts are forecasting that the supply and demand issue in Toronto is going to last for year to come.

The reason for this is because, there are approximately 100,000 new people coming to live in the Greater Toronto Area each year (according to some sources).

Forecasts indicate that the Toronto real estate market is becoming an International real estate market, similar to New York, London, and Hong Kong.

Further to that, experts forecast that over the next 25 years, 4 million new people will be coming to live in the Greater Toronto Area and surrounding areas.

As this unfolds, the cost of detaches homes will continue to sky rocket.  (increase )

This is where there is opportunity for you if you are looking to invest in real estate.

Condos, especially condos in Toronto, are going to be the property type that people gravitate towards.

Condos will be the only property type that most people will be able to afford.  (Some think Toronto’s Middle Class is about to be priced out of the condo market.)

In addition, with the increase of prices, condos will increasingly become a property type that people will be looking to rent.

As a real estate investor, you should be looking to buy Toronto Condos.

I am going to go into more detail in my next blog post.

For now, it is important to remember this:

If you are looking to buy your first rental property, or if you are an experienced real estate investor looking to buy your 5th rental property, there is tremendous opportunity in buying Toronto real estate, in particular, condos in Toronto.

Happy Investing!

-Neil