Investing

Is it a good idea to invest in Condos in the GTA

  • Last Updated:
  • Apr 3rd, 2019 3:21 pm
[OP]
Newbie
Mar 31, 2019
1 posts

Is it a good idea to invest in Condos in the GTA

After the announcement that the mortgage rates are going to decline. I wonder if it's a good idea to invest in a condo (designed for rent)!
6 replies
Sr. Member
Jan 6, 2015
522 posts
122 upvotes
Why I am hoping housing market collapse...................Confused Facestupid government policy
Deal Fanatic
Oct 7, 2007
6646 posts
2933 upvotes
You might want to look to Vancouver for your answer. Vancouver has overbuilt condos to the point that there are probably 3 dwellings to each household unit. Prices are only now starting to reflect the oversupply situation because the prices are so high and the cost of just owning is high as well that it doesn't make financial sense to own more than one. Toronto may have different prices and cost of ownership but I certainly wouldn't want to be owning a condo in Vancouver right now.
Sr. Member
Jun 28, 2018
743 posts
491 upvotes
Toronto
Lots of factors like economy. However, there are also trends going on.

How many baby boomers do you know who are downsizing from a house. Ask them where they are moving next or have moved to. Previously it was buy up an old neighbourhood lot, tear down, and build "bungalows"! Now some will say Townhouses and condos. Family friend's parents downsized into condo. Family friend downsized into townhouse. Family friend already bought pre construction condo and are in process of selling their detached house. My parents thinking about downsizing into condo. I live in a condo. Buddy with his wife have a pre construction condo almost built and they'll move in eventually.

Younger generations like condos. Older generations like condos. Maintenance baked into fees (freehold townhouses somewhat different). Less hands on as the condo board (if they're good) will keep prices steady and hire good people to service the condo building.

Green plans from previous Ontario governments has meant the way to build is up. More land protected from development means less sprawl and this means intensification of existing lands, hence condos. That was a concern when Ford was going to allow developments then walked back on that. It confirmed existing land in good areas will only continue higher.

Problem is quality condos with larger space will to cost more.
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
Deal Addict
Mar 27, 2004
3892 posts
1395 upvotes
Toronto
RamiMalek wrote: After the announcement that the mortgage rates are going to decline. I wonder if it's a good idea to invest in a condo (designed for rent)!
yes
Full-time Realtor
Deal Addict
Jan 20, 2016
2028 posts
1008 upvotes
Houston, TX
Yes
No
It's depends (especially on taxation)
Make the face great again
Deal Addict
Oct 7, 2011
1068 posts
364 upvotes
Toronto
RamiMalek wrote: After the announcement that the mortgage rates are going to decline.
What announcements? Bank of Canada will pause raising the interest rate. It doesn't mean interest rates will definitely go down, or sideways, or even up. Changes in economic situation happen all the time.

There's inverted curve that's causing concern. There are arguments of housing prices going up or down, condo prices going up or down. The recent report that 40% of housing bought in Toronto are money laundering related, hence the last decade of prices driven up. Will something be done about it? Maybe. Will the prices go up or down, or sideways? Definite maybe. Is it a good idea to invest in condos in GTA? Real estate brokers will say yes.

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