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If you are reading this article, you probably are looking to buy a condo in Toronto, and perhaps you have already saved up some funds for that purpose. However, with the many ‘sold over asking’ tags hanging over ‘for sale’ signs of detached and single-family homes, you may ask if this is an excellent time to buy a new condo in Toronto. The answer is yes. Below are five reasons why 2022 is the best year to buy a new condo in Toronto.
High Equity Gains in 2022
Experts explain home equity as the clear variation between your condo market value and the amount you owe on your mortgage. If you’d sell your condo after paying off the mortgage, home equity is the amount of money you will gain. For example: Suppose the market value of your condo is $600,000 and you owe $250,000 in mortgage, your equity is $600,000 – $250,000 = $350,000. So your equity is $350,000. The equity can be enhanced either by increasing the value of your condo or by lowering the amount you owe on your mortgage. However, other external factors will help increase the value of your condo. Buying a condo in Toronto is a sure way to increase your equity gains because condos in Toronto are in high demand, and your condo’s value will continue to increase. In addition, there is a month-to-month increase in the value of condos in Toronto. So you are guaranteed to get high equity gains from buying a condo in Toronto. According to Royal LePage’s home price forecast for 2022, there would be a 12% increase in Toronto condo prices by the end of 2022. The average price of a condo in Toronto will increase to $763,800, a difference of $81,800 from 2021. And if prices go higher than that late into the year and after, which is likely to, you are in for more gains on equity if you bought your condo early enough in the year. There is no forecast of a price drop in Toronto condos prices before the end of 2022. This data shows that 2022 is the best time to buy a new condo in Toronto. As prices increase, the value of your condo increases as well, further increasing gains on equity.Re-opening of Borders and Influx of Immigrants
The availability of the covid-19 vaccine has achieved many things, including the re-opening of borders. Canada would continue its target of 400,000 immigrants per year. Metropolitan cities like the Greater Toronto Area will start to fill up again. According to Daniel Lee, who runs the Toronto homes website, an independent online portal for real estate in the city, immigrants will fill up rental units to settle in before purchasing a property for the long term. According to Toronto Regional Real Estate Board (TRREB), about 200,000-250,000 immigrants settle in the Greater Toronto Area every year. An enormous number of immigrants would need accommodation, rental Condos, to be specific. New immigrants will opt for Condos in 2022 as they are affordable, more affordable, and close to great educational, recreational, and career opportunities. These statistics show a low vacancy rate in the Toronto Condo market in 2022. So if you are buying a condo in Toronto for investment or renting out, now is a good time.High Prices and Shortage of Other Housing Types
Many Toronto developers are not building many new freehold houses, and there is an apparent, unavoidable reason why. There is no space; it’s way too expensive for buyers, and to be honest, Condos offers developers Greater returns on investment. Based on the new report by Royal Lepage, the average Greater Toronto Area home price is expected to rise to $1,243,000 by the end of 2022. Comparing that to the estimated $763,800 for a condo in Toronto shows that buying a condo in Toronto for investment in 2022 is an intelligent decision. You have the option to buy a property that will increase in value, and you won’t have to ruin your credit score. Plus, because there are a lot of condos in Toronto, you have a variety to choose from, unlike when buying freehold houses. If living within your means is top on your list of new year resolutions, then 2022 is best to purchase a condo in Toronto and not an overpriced house.The Covid-19 Pandemic is Likely to End in 2022
Several reports show that during the early stages of the covid-19 pandemic, many Torontonians withdrew from living in condos and crowded cities like Toronto to reside in private homes in smaller towns. Many did this out of fear of catching the virus, as the thought of sharing elevators, lobbies, and other common areas with others in the heat of the pandemic didn’t hold its appeal any longer. In addition, the closure of businesses, restaurants, and companies made people question why they had to continue paying high downtown housing costs when they no longer worked there. These factors slowed down the Condo real estate market in Toronto. However, that is about to change as the pandemic is predicted to end in 2022. According to a recent report, Bill Gate predicted the acute of the covid-19 pandemic to end in 2022. Irrespective of the new omicron variant, the philanthropist who warned of the pandemic before it started forecasts that the covid-19 would become only an endemic disease in most places in 2022. In a report in November 2021, the UK government disclosed three possible scenarios for the end of the covid-19 pandemic. One of those scenarios is the timeframe between 2022 and 2023. The implication of this information for the Condo market in Toronto is an influx of returnees to the city. This repopulation in Toronto is evident from the soar in demand, prices, and sales of condos that marked the fall season of 2021 as a black Friday in Toronto’s real estate history. Based on data from a recent report by TRREB, realtors reported a total of 7,810 condominium sales in Q3 2021. As more businesses, restaurants, companies are re-opening, more people are returning to downtown Toronto. If you want to hit the Toronto Condo market when demand is high and get a good investment return, 2022 is an excellent time to buy a condo in Toronto. You can also buy pre-construction condos in Toronto from this year and start preparing to move in 2 to 3 years later when the construction is completed. The covid-19 fear should be history by then. Buying pre-construction condos in Toronto in 2022 would help you save thousands of dollars instead of waiting until the disease is entirely non-endemic —say months to years later.The Toronto Condo Market Prices are Not Likely to Fall
Yes, that’s right. You may be in fear that if you buy a condo in Toronto today, what if prices fall after a few months into the year. That would be a loss on your investment, a decline in your condo’s market value, and low equity gains. Well, fret not; experts predict Toronto condos prices are likely to rise rather than fall. According to a report by TRREB, condo prices rose 8.2% in 2021 in the Toronto region, an average of $681,218. A report by Zoocasta showed the average price of a condo in Toronto five years ago was $379,002. Having $763,800 at that time means you would be buying a detached home, not a condo. Royal Lepage predicts an increase to an estimated $763,800 for a condo in Toronto in 2022. These statistics depict a steady increase in the price of condominiums in Toronto and not a price fall. Don’t fret; by buying a condo in Toronto, you are sure to make profits from your investment. However, if you are hoping for the market to fall, thinking you may be able to buy a condo at a lower price, chances are you may be waiting forever because prices might increase in the future. If you have your down payment ready, this year is the best time to buy a condo in Toronto. If you wait longer, the value of the money you have saved will only continue to depreciate. For example, if the down payment for the condo you want to buy is $200,000 and you have saved up to that amount in your bank account. If you hold off from buying this year and the market goes up by 20% next year, the worth of your $200,000 decreases to $180,000. So rather than keeping the money in your account for it to depreciate over time, why not consider buying a condo in Toronto for investment — a sure-fire way to double the money. But if you don’t have the down payment fee saved up and you still want to buy a condo, you can still buy a condo in Toronto with no down payment. When buying a condo in Toronto with no down payment, you are not spending your money. It’s a no-down-payment mortgage available to you to help you buy a home. This way, you can stop renting and start saving the money you would have used to rent to pay your mortgage. Besides, if you are renting, you are indirectly paying your landlord’s mortgage, so why not buy a condo in Toronto this 2022 with the no down payment mortgage and start paying for your own home.Excellent Places to Buy a Condo in Toronto
At this point, you may have questions about the best places to buy a condo in Toronto. In this section, we have included a mini buying a condo in Toronto guide along with an exciting list of some ongoing projects you could choose. There are too many options, and it may get a little hectic trying to find the best place to buy a condo in Toronto. There are factors to consider when deciding on the best place to buy a condo in Toronto. Those factors include condo amenities, age, location, price, size/floor plan, condo fees, and proximity to quality schools. Based on these factors, we recommend some areas as the best places to buy a condo in Toronto. These areas include Cabbage Town, Old Town, China Town, and The Entertainment District. Also, consider Brampton, Mississauga, Burlington, and Scarborough in Greater Toronto. Some ongoing projects in these areas are:- M4 Condos by Urban Capital and Rogers Real Estate Development Limited. This project is presently in preconstruction at Burnhamthorpe Road West, Mississauga.
- Duo Condos is a new condo in pre-construction by National Homes and Brixen Developments Inc with 350 units.
- BeauSoleil Condos is a 291 units new condo complex by Carriage Gate Homes, and the project is in pre-construction at 2069 Lakeshore Road, Burlington. Units start from $ 400,000’s.