Why Now Is The Time To Get In The Real Estate Game
Five Strategies for the skeptical Investor
Buying and selling in this fast moving and aggressive market can sometimes scare people away due to a fear that the market is out of their reach. In the 25 plus years we have been in the industry, we have experienced markets like the one we are currently in. We understand that real estate is the most significant investment you will make in your life.
We have compiled our top five tips that will provide context and understanding about the current market which will answer your questions:
#1 – Borrow Money to Invest
Affordability to borrow is a hot topic right now. Interest rates to borrow are at all time low making money cheap to borrow. This really is a good time to get a mortgage and lock into a manageable monthly payment. Keep this in mind as you look at higher housing costs as lower borrowing costs help to balance this out.
#2 – Invest in a Long-Term Purchase
If you are deciding to buy a home, look at your purchase as a long term Investment. With this mindset and plan, you can afford a slight decrease in the market when it happens. As we have seen in the past, everything is cyclical, as the stock market illustrates to us regularly. It’s inevitable, the value of your home will have small dips and rises but don’t let that stop you from buying.
#3 – Housing Market Correction
When the United States Housing crisis occurred we in Canada had fears that our market would fall into crisis as well. What we actually saw happen was that our market did not crash but plateaued for a few years. What we see happening in the past 3 years is an increase to make up for that plateau that previously occurred.
#4 – GTA Growth Rate
The GTA has a growth ranges between 35% – 43%. This is a huge factor of why the market is not slowing down. As a result of this growth, there is a huge demand for real estate in the GTA. That demand needs to be filled and we are seeing that and homes are selling within record times of a day or two on MLS. We can also see the GTA’s response to this huge growth rate in the dozens of Condo developments that have been filling our shorelines the last 5 years.
#5 – The Current GTA Market
The GTA housing costs are definitely rising but they still have room to grow. When we look at other urban cities like London and New York our housing prices here in the GTA don’t compare. New York and London are extremely high in comparison to the GTA and it look like Toronto is just catching up. According to analysts, our market in the GTA can still sustain higher price points.
What does this mean for you?
Here are the stats. According to the Government of Ontario, GTA is projected to be the fastest growing region of Ontario, with its population increasing by over 2.8 million to reach almost 9.5 million by 2041. This means that the demand for housing will continue to rise and therefore the price of real estate is expected to hold and grow.
With that said, don’t let the fear of the unknown stop you from investing in real estate. The market is hot right now, but do yourself a favour and make an informed decision and work with a realtor that has experience in the housing market. Trust the team that has been around and has lived through the past 25 years of ups and downs. Let us lead you through the process of buying or selling your home. Contact us today and we will help you make an informed decision.
*The material in this article is presented as general information only. It is not intended as legal, financial or real estate advice and must not be relied on as such. You should make your own inquiries and obtain independent professional advice tailored to your specific circumstances before making any legal, financial or real estate decisions.