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
