Should You Invest in Toronto Properties in 2021?
With COVID-19 still leering and the future remaining unpredictable, many people are wondering if it is worth investing in Toronto properties in 2021.
Predictions state that the Toronto housing market will take a hit in 2021, with housing prices dropping by as much as 18%. But what does this mean for investors? One could argue that the drop in the market means that it is a fantastic time to invest, as prices could very well rise again once the spread of COVID-19 slows or stops. When this happens, the housing market will rise and investors can earn a return on their investment. On the other hand, there is no telling what the future holds. Investing in Toronto properties in 2021 could also mean that these properties will remain empty as renters look to move out of the city, where rental rates are substantially lower.
Another factor to consider is the 15% Non-Resident Speculation Tax. Foreign investors that own vacant properties throughout the city may consider selling due to this tax, which could cost them thousands of dollars per year. This could mean an influx of properties for sale that local investors can exploit.
Many people are also taking advantage of the current low mortgage rates. People who have not been financially hit by the pandemic are seeing this as a great opportunity to invest in property, especially first-time home buyers. In the past few years, mortgage payments often have been higher than rent. With the housing market in Toronto expected to drop and mortgage rates being at a record low, it gives people who previously couldn't afford to invest the opportunity to buy property in the city.
The year 2021 could prove to be a great opportunity to invest in property, with prices and mortgage rates being low and possibly dropping even more. If, as an investor, you are willing to wait to get a return on the investment in the years to come, then investing in Toronto property in 2021 is probably a good idea.