The year 2020 started well for everyone; the two months in the New Year and everything was looking good. Then came March and soon after everything was not normal. People feared for their lives; there were restrictions in place, and things were gloomy at best.
Fast forward few months, here we are in the last few weeks of the summer, and it seems that we are out of the depth. The virus is still out there, people still get infected, but everyone is trying to adapt to the "new normal" and accept the new reality.
After the initial shock and the halt that came with it, the Toronto real estate market is steaming ahead once again. All the data show a mini-renaissance in the residential property market - the demand is good, the supply bit shy, prices bit on the high end, but overall all looks tidy.
But is it a good time to invest in a Condo considering everything? Let’s check out the pros and cons of doing so.
Pros of investing in a Condo
Interest rates are at record low levels. It is not likely to get a better loan with better terms.
The demand for condos in Toronto is increasing. It was pretty much at a halt in March, but all data shows the demand is ongoing and it isn't going to stop in the foreseeable future. Each year more than 120,000 people migrate in Toronto from other cities and countries as well. This year, that number will be much smaller, but enough to keep a steady demand for both new condos and rentals. So, if you plan to rent your condo, finding tenants won't be an issue at all, especially if the condo is in an area that connects well with the rest of the city.
The supply at the moment is barely serving the demand. From the available data, the current condo projects in development can't match the demand that is only to increase with time. For this not to happen, we need to experience a massive surge of new infections and lockdowns, which is not likely to happen.
Buying a condo costs way less than buying a house. Furthermore, maintenance costs are way smaller.
No matter what, young people will always prefer to live in the city and as close as possible to the centre. Condos are the natural choice for young professionals that are not ready to settle just yet and prefer urban than rural living.
The cons of investing in a condo
The economic turmoils caused by the pandemic might affect the real estate market, and condo prices might start dropping.
There is a new study suggesting that Canadians are more interested in houses with amenities such as big yards, terraces, and pools, rather than in apartments. This is mainly driven by the fear of a lockdown which is even more difficult when you are stuck in an apartment unit.
Can’t predict your returns because of the corona virus pandemic.
It all comes down to your reasoning and assessment of the condo market. At the moment you can still find a decent offering of condos for sale in Toronto, loan rates are quite low, and people are very optimistic about what lays ahead. Some think that we can keep the coronavirus under control and go on with our lives and business, whereas others are feeling optimistic because of the potential vaccines.
In any case, you got all you need to make your mind. So, choose!