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More Rental Options to Hit Toronto Condo Market this 2015

Condo Market

 

For the past year, more than 20, 000 new condo units have been constructed in Toronto area. This is expected to rise at the end of 2015 where more than 70,000 units will be hitting the market. It is then of no surprise to see the rise of rental properties in the area. For the past years, the rental demand in Toronto, the largest condo market in Canada, has believed to surge to a record level but there is also an expected drop on vacancy rates due to the growing supply of condo units in the area. This might be good news to people who will be coming over the place to look for condo units for sale as more competition only means more option to them.

 

People, especially the young ones prefer renting condos that owning one as they commonly use it for ease of accessibility on schools in the area. More people who are flocking in Toronto mostly prefer condos for rent due to their accessibility to metropolitan areas and the facilities it offers. They chose to rent than buy units if they do not have the plan of staying for long or want to save money by renting and investing their money for something else.

 

 

In some cases, people who already own family home who chose to rent than purchase a condo unit want to save money by not paying monthly mortgage or tax that are usually associated in purchasing condos in the area. They only pay for one thing which is the cost of their stay. Tourists who are planning to have a short stay in the place also prefer condo units than apartments and houses due to their competitive rates.

 

With the rising condo units in Toronto this 2015, it doesn’t mean more money on the pocket for the landlords. This is likely the result, because the competition on the Toronto condo market is also high and the condo vacancy rates are also predicted to remain low. Still, investors can profit from buying, renting and selling condominiums in the area. This is especially true for those who have unique suite profile and are located in hot locations. There is still a big demand for good rental condo properties in Toronto’s hot locations, like those that are near schools and downtown areas.

 

 

A good investment condominium property can be cash positive with 20% down payment which is basically required for mortgage. It can give an opportunity for value appreciation and cash flow over time. Although the rental market continues to be all-time low, it will be easy for condo owners to find a good tenant. There will be also less repair or maintenance needed compared to being a landlord of a Toronto family home. In addition, condo units located in hot locations are more appreciated by tenants that the stock market.

 

In order to survive in the competition, investors must make a wise choice in purchasing new condo units. Overpay for a property and overpricing rents just to try to make up for the unwise investment will surely get them burned by the market’s competition.

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