We're in a buyer's market, mortgage rates are at historic lows, and the rental vacancy rate in Toronto is down to only 2.1% All of this points to one thing: now is a great time to consider a condo investment. Let's examine each of these factors in a bit more detail.
Buyer's Market: you are much less likely to encounter a multiple-offer scenario, and there is room to negotiate that even a few months ago did not exist. High-demand units (close to public transit, retail, amenities) are in greater supply than we have seen for quite some time. These units are the easiest to rent and tend to attract the most dependable tenants.
Mortgage Rates: cash flow is key. With a lower mortgage payment, your rental income is covering a greater proportion of your monthly carrying costs. With a well-informed purchase, you may even find that your rental income covers 100% of your carrying costs including maintenance fees and property taxes. And don't forget, as your mortgage matures, a greater proportion of principal is being paid down each year.
Rental Vacancy Rates: many people are putting off buying in the short to medium term, and entering the rental market as a result. This has driven down the Toronto vacancy rate to 2.1%, from 3.2% last year.
Please contact me to discuss the most suitable condo investment options within your price range.
