Housing has become one of the most challenging life aspects in the Greater Toronto Area (GTA) due to high prices, which can be attributed to several factors. If you are planning to come to GTA, you should be ready to face reality. The prices of houses here are not what you are used to in other places within Canada. However, that should not scare you from coming and investing in the real estate market in GTA. There will always be a way out for smart investors, and you should be one. You may even buy the most expensive house in Toronto if you play your cards well. Don’t let fear take control of your ambitions to own a home in GTA. You can also make it big here, just like any other homeowner in the city. But, do you know why housing in GTA is expensive? Here is why;
Job opportunities
Job opportunities may impact the prices of houses in any area, especially in cities. There are many job opportunities in GTA, especially in Toronto city. These job opportunities make this place more desirable than other places. As a result, many people move here in search of greener pastures. As more people come in, the demand for housing keeps increasing because these people need somewhere to live. High demand for housing will trigger prices of houses to go up. The demand-pull effect on prices means that the prices go up as more people become willing to pay to acquire the available homes. The availability of jobs also has a positive impact on the economy. When the economy is healthy, the prices of houses will be high. If you intend to find cheap houses for sale in Toronto, you can still come and try your luck. You may find what suits your budget. G1 Homes are here to sort you out if you need a pre-construction home.
Immigration
For years, Canada has emerged as one of the best countries for immigrants. One of the most attractive places for immigrants is the Greater Toronto Area, especially the city of Toronto. The immigration trend means that the population in GTA is always high, leading to an increase in demand for housing. The more immigrants come in, the more houses for settlement are needed. This high demand for housing eventually makes the prices for houses go up since the few available houses become up for grabs. For those who have plans to move to Toronto, you should come prepared for this as you may actually own one of the most expensive houses in Toronto. Yes, there are condos for sale, but you may pay more compared to other places within Canada. If you are determined to own a home in Toronto, you will find a way out despite high prices.
Foreign investors
Toronto has attracted a lot of foreign investors, who greatly impact the real estate market because they invest heavily in the sector. It is reported that foreign investors have invested up to $38 billion in the housing market in Toronto. This is a very significant amount of investment. Due to many foreign investors coming in, the government has imposed a 15% foreign buyer’s tax on any residential real estate. This tax is on any residential real estate that is bought within Toronto and the areas surrounding Toronto as well. With the introduction of this tax, prices of houses have emerged to be so high in GTA compared to other areas. This could be something that you will have to live by it if you intend to move to GTA. If you plan to venture into new construction homes, you should not abandon them. Keep doing your search in the market, and you will probably find what falls within your budget. You will not miss finding an affordable home despite prices being high in GTA.
Speculation
Another reason for the high housing prices in GTA is speculation. Toronto’s real estate has caught the attention of news outlets and financial analysts. This has prompted it to catch headlines all over the world. Due to this attention, the Toronto region has been in-demand, with scores of people rushing to settle and invest in the area. The population of those who want to buy homes and settle is growing from time to time. This large population creates a great demand for housing, forcing people to scramble for available houses as they try to find a place they can call home. As discussed above, high demand leads to an increase in prices. This can, at times, be a threat to affordable housing in Toronto. Builders have become more comfortable, knowing they will always sell the houses regardless of the high price due to the competition for the available homes.
Canadian banking system
The banks have also had a role in the high prices of houses in the GTA. Regulations put in place by the banks some time back haven’t allowed prices to go down significantly. Additionally, bank rates on mortgages have been higher in the Greater Toronto Area, making house prices to go up considerably. This and other banking factors have contributed to the expensive nature of the real estate market in GTA. The impact of the banks must be felt because, as a buyer, you’ll need them when buying a house in Toronto. If you didn’t know, now you know.
Conclusion
Now that you understand why housing in the Greater Toronto Area is so expensive, you have all it takes to plan well. If you already have plans to move to Toronto, do not cancel. Just come and be among the various proud homeowners, even though you may have to settle for some of the most expensive houses in Toronto. If you want to rent, you will still find something that suits your budget. For now, gather information regarding the best home sellers and the average house price in Toronto. Once you know that, you can go ahead and make an informed choice. If buying a pre-construction home is what you want, don’t hesitate to reach out to G1 Homes. They already have what you need, and they will serve you better. Don’t give up on that investment of a lifetime you have always wanted to make because it is possible.