Real estate assets provide a lot of stability. With the market cooled down, now is the perfect opportunity for the strategic buyer who never liked the crazy bidding wars.

Why rent, when you can buy?

Many clients tend to put off buying for the future, but why? Renting is becoming much more expensive and less secure. These are the average rent prices condos in the GTA are seeing as of September 2022:

Studio - $2,100
1 bedroom - $2,500
1+1 - $2,800
2 bedroom - $3,500

As a renter, you’re at the mercy of volatile market prices, landlords wanting to move back in to your home, and the little flexibility to make household improvements without benefiting someone else.

From a real life example, I helped a client move into a one plus den unit downtown in June 2022 for $2,550. As of September 2022, that same condo leases for $3,100. That is $6,600 ($550 x 12) more a year out of pocket, while salaries remain the same.

Yes, the cost of buying is also increasing, but owning real estate provides much more stability than the average renter:

■ You’re buying an asset that you can live in

■ You may use your home to generate income (secondary suites, short term rentals of a room or section of the house, renting out the entire property)

■ You have options to refinance and pull out cash at a relatively low interest rate

■ It’s much easier to leverage to a bigger home

■ Smart household improvements will raise property value

Navigating the fall 2022 market

You can’t time rock bottom, but I guarantee that your real estate purchase will increase in value the longer you have held the asset.

The Bank of Canada has increased it’s policy rate to 3.25% from 0.25% earlier this year. Not only has it changed affordability and what a buyer can be approved for, but it makes a lot of buyers hesitant, waiting to see if the prices will go down even further.

Smart buyers will take advantage of this lull, because just as fast as pries fell, they tend to creep back up again. In my opinion, the real estate market in Toronto will stay strong for the following reasons:

■ Ontario’s population is projected to grow by more than 5 million by 2050

■ 35 – 40% of that population growth will take place in the GTA

■ New housing isn’t being built fast enough, and a number of projects have been cancelled in the past few months

■ Toronto continues to rank one of the most desirable cities to live in the world

■ Canada offers a significantly easier immigration process for companies to recruit global talent, a major problem facing US-based counterparts. 

Buying a home requires a bit of planning - down payment, paying off loans, improving credit score, completing your probation period if you’ve just started a new job. I am here to teach you about the market, realistically guide you through what is and isn’t possible, and show you many home options until you find the perfect one.

Over the past few months, I have helped a number of clients finally land their dream homes thanks to the flexibility to include finance clauses and negotiate prices that work for them. Some of these buyers were fearful of never being able to purchase due to crazy bidding wars that the market has seen for so many years.