The Toronto housing market has been on fire since early 2020, with pandemic-fueled spending leading to the real estate market becoming hotter than ever before. Just about every part of the market is hotter than ever before, from condos to detached homes – even the rental market is showing absolutely no signs of slowing down anytime soon. With demand at record high levels and supply consistently low, Toronto’s real estate market looks to be a sure bet for prospective investors for the foreseeable future.
As if there weren’t enough reasons for investors to jump into the real estate market, Teranet, a land registry operator in Canada, recently revealed that nearly a quarter of all homes purchased in Ontario in 2021 were purchased by investors who own multiple properties. This is a clear signal that investors are seeing plenty of reasons to strengthen their grip on the real estate market and capitalize on white hot demand for real estate.
Why owners with multiple properties are dominating Ontario real estate
The province’s largest group of real estate buyers are those who own at least one other property, according to Teranet – at least one in four Ontario home buyers currently owns at least one other property. The number of buyers with more than one property has risen by nearly 50% over the last decade, and shows no sign of stopping anytime soon. This number continues to rise in Toronto, with nearly a third of buyers owning more than one property.
While there are many reasons for this increase, the most obvious answer is that serious investors are seeing major potential for a return on investment, causing them to jump into a market they already have experience in. This willingness to jump in when the going is good is something many first-time buyers simply don’t do, leading to those with multiple properties reaping the rewards of a hot market. The increasing demand for real estate is another major reason for investors seeing an opportunity to expand their portfolio and take advantage of a desirable rental market, with investors knowing that their properties won’t sit empty for long, if at all.
The time to jump into the market is now
With Toronto real estate demand once again on the rise, now is the time to make your move. Prospective real estate investors are encouraged to jump into the market now before any properties they’re eyeing are bought out from under them. If you have a down payment and the willingness to explore the world of real estate investing and becoming a landlord, the market can’t get any better for you.
While Toronto’s vacant home tax comes into effect on January 1st, 2022, sky high rental demand means there’s little doubt that you’ll be able to find a desirable tenant for your rental property well before the start of the year. Those who have waited in hopes of securing an attractive property at a lower price should know by now that with low inventory throughout the GTHA, your wait could last far longer than you ever expected. Paying more upfront now could net you a great rental property, a whole host of potential tenants, and an investment that pays for itself.
Making the case for property management services
With the Toronto real estate investment scene currently booming, many home buyers are finding themselves as first time landlords. Being a landlord can be extremely rewarding, but is a lot of work and can take years to master. You have to carefully screen tenants to weed out bad apples, keep up with home maintenance, be ready to answer calls, texts and emails at a moment’s notice and at all hours of the day, and prepare yourself for the many unexpected situations you may find yourself in. With a full time job, a family, friends, and hobbies, fitting in landlord duties can be tough, which is exactly why Toronto property management services are so highly sought after.
Property management companies like HighGate Properties are here to take care of the more time consuming aspects of being a landlord, allowing you to spend more time on the things you value most in your life. Our team handles landlord screening to ensure that you’ll never have to worry about having a nightmare tenant in your property, takes care of maintenance and repairs using our network of experienced contractors, and will manage just about every aspect of your property so you can reap the rewards of being a Toronto real estate investor without the hassle.
To learn more about the high quality residential property management services offered by HighGate Properties, get in touch with us today.
