Canada’s condo market to dodge hard landing as population, job gains drive demand: study
August 29, 2013
Gloomy headlines may get more clicks but here’s a piece from the Financial Post that I think tells a balanced story. Every major media outlet has published a story about the number of condo units coming into the Toronto market vs the number of buyers. In months when condo sales are down, forecasters point to the statistics as proof of a bubble about to burst. Here’s the reality: the market is cyclical. There will always be times when home values rise quickly just as there will always be times when values may go down or not rise as quickly. The bottom line is that real estate values in Toronto have always risen over time.
One can strategize to death over the best time to enter the market and there are so many factors that determine whether it’s the right time for you to do so… but most are personal to you as opposed to being in relation to the market. Sometimes it’s just best to jump on in as long as you can handle the financial implications. Having said that though, we are all worried about buffering potential losses so the best way to do that is to “buy smart”.
What does “buy smart” mean to me? It means a simple, functional, structurally sound space (house or condo) in the best neighbourhood that you can afford or neighbourhood that has undeniable growth potential. It doesn’t have to be pretty and it doesn’t have to be “done up to the nines”. It should be as close to public transportation, good schools and a strong community commercial presence as possible. Of course every property has it’s pros and cons and finding the right balance is often easier than one might think… and that’s what I’m here to help you with.
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