Why Home Prices Are Likely To Stay Hot For The Foreseeable Future

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Real Estate Sales Representative with RE/MAX Gold Realty Inc.,Brokerage

Though home prices are already unbelievably high in Canada, they aren’t expected to cool down anytime soon, according to housing market experts

 

Thinking about buying an investment property in the GTA? Now is as good a time as any to buy. Already soaring prices are expected to continue rising in Canada for the foreseeable future, according to housing market experts.

Canadian single family home prices increased by an astounding 16 per cent year-over-year between July 1st, 2020 and June 30th, 2021. June’s monthly gain of 2.7 percent represented the 20th consecutive monthly rise and the second largest since 1999.

Prices have been on a tear for a few key reasons, according to Riaz Ghani, one of Canada’s top RE/MAX agents: supply shortages, low mortgage rates, improved mortgage qualification, pent up demand and keen investors.

Why are home sales likely to stay hot in the greater Toronto area? Lockdowns and stay-at-home orders have created a demand for larger homes with backyards, driving home buyers out of Toronto and into smaller more affordable communities across the GTA. That trend isn’t likely to end even when the pandemic does.

The reopening of the Canadian border is also likely to play a role in price increases down the road, according to Sri Thanabalasingam, a senior economist at TD Bank Group. When the border reopens, immigrants will once again be able to settle in the GTA with the goal of eventually buying their own home. Rental market is expected to stay strong as well.

So the big question is why should you invest in an income property? Residential rental properties can generate monthly income and can also be a great long term investment, says Riaz, who has helped investors find properties in the GTA with an average return on investment of more than 25 percent per year and a rental yield of four percent per year, sufficient to cover the carrying cost

In the last few years, “most people have had a return on investment of 35 to 40 per cent,” he says. “ROIs are really high.”

He can also help you find high-quality tenants and assist you in managing your property at no charge.

The best part of all? You don’t need to put down millions of dollars to become a real estate investor. Riaz offers investment options for small investors looking to invest $120,000 to $150,000.

For more than 10 years, Riaz has helped  buyers find their perfect income property in Oakville, Mississauga, Milton and other areas across the GTA with zero hassle, zero risk and zero sacrifices.

 

Reach out to Riaz Ghani to find out why he earns clients, not just commission.

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