Real estate agents are conditioned to tell you that every time of the year is a good time to buy and every time’s a good time to sell. Regardless when you ask us. It’s just how it is. Don’t hate us. It’s called sales. And in real estate the best time to do either is often when life circumstances dictate it. But I’m going to break the rules and tell you something completely different today, despite the fact that there are huge pros to both buying or selling in Toronto this winter.
If you don’t need to sell your Toronto loft or condo to buy your next property, I’m recommending something you’re not going to believe. DON’T SELL IT. Sure prices are up year over year and the value of your Toronto loft or condo real estate investment is at an all time high. And while it’s a little softer than it was earlier this year, we’re still living in a seller’s market in Toronto. But if you can buy the next pad without needing the money from the first, then do it. Why? I’m advocating to own as much Toronto Real Estate as you can, as soon as you can. That’s why.
Quick anecdote for you.
A few years ago I was in New York City. This was back during my television days. We were shooting, and the sound guy we always used had a loft that he’d offered to let us film in. He wasn’t a rich man, by any means, but he lived in and owned a friggin’ loft in Manhattan!
I was obsessed. OBSESSED. Turned out he bought it years prior, before it was a $2 million dollar property. He got in when he could. And do you know what the median cost of his neighbourhood is right now? $2,000 per square foot! That’s $6,500 on average to rent, and $3.75 million to buy.
New York is arguably my favourite city in the world, and part of what makes me love Toronto so much is that we are growing in similarities to it every single day. We definitely aren’t known anymore for just our concrete or cold temps. Our city has hit the attention of the entire world. With our fame comes everyone wanting to live downtown though. And as a result, it’s not getting any cheaper. What’s that, you want some numbers to prove it? Sure! The Toronto MLS Home Price Index from last month shows an on-average 23.53% year-over-year appreciation on Toronto lofts and condos. While the rest of the freehold house market has fluttered up and down this year, the condo market IS FIRE. The average price of a downtown condo in Toronto (C01) right now is $547,000. If we apply the appreciation percentage on the downtown core (21.78% in CO1), it’ll be $666,000 next year. Year after year it’s becoming more and more expensive; bigger, better and more desirable with every passing day. If you’re up early with the birds next Monday morning, you can listen to me preach more about condos to CTV’s Your Morning. I am a true believer.
I don’t know about you, but I want to be the person with the cool Toronto loft in 2027. That I own. That friends drool over. That I’m grateful I bought when I did. That I’m happy I didn’t sell to buy my family house because I have renters in it that are paying my mortgage and building my retirement savings. I don’t want to be penny-pinching $6,000 a month in rent — and trust me, we’ll get to that — because I waited too long.
Long story short, my advice this winter, moving into spring 2018 is: BUY if you haven’t already yet and KEEP if you already have it. In a decade, the average person probably will not be able to afford real estate in Toronto. Not that the average person can now, but the walls tighten up even more every single year. Unsure about being a landlord? Stay tuned for a future post or contact me directly to learn more.