Toronto among the best international cities to invest in Real Estate
Toronto has long been a favourite market for real estate investors – and it’s not hard to see why.
Strong Immigration, a record low mortgage rates, high ROI, a variety of inventory, a low vacancy rate and strong demand for rentals means that condos in Toronto will be in high demand.
A recent report has detailed some of the most expensive real estate markets in the world. When you compare what’s available in terms of price per square foot in Toronto, there’s really nowhere else you can enjoy such reasonably priced, world-class real estate. Take a look at how the numbers stack up.
Visions of grandeur spring to mind when one thinks of Monaco - fast cars, large yachts and even bigger houses. As such, it has become the most expensive housing market in the world, with buyers forking out $5,350–$5,920 per sq. ft. of real estate! Prices rose 2 per cent last year, just another reason buyers are drawn to the market. There is no income or business tax payable in Monaco, keeping this city at the heart of investor interest.
2. Hong Kong
Hong Kong’s steaming hot property market has been subjected to new government restrictions in a bid to cool it down. Price per square foot ranges from $4,570–$5,505, and even with a 15 per cent stamp duty tax on foreign buyers, the prices have continued to climb. In 2011 the rate of increase was 4.6 per cent. In 2012, it was almost double at 8.7 per cent. Although the city is popular with both domestic and international investors, Knight Frank predicts the cooling measures put in place will have an effect going forward, resulting in a 5 per cent decrease.
London’s property market heated up last year, despite economic woes in Europe and a stamp duty tax affecting properties valued at over $3 million. Prices increased 8.7 per cent, made buoyant largely by overseas investors from Europe, Asia, Africa and Russia. Prices are expensive at $3,890–$4,300 per sq. ft., and they’re set to climb further as Knight Frank predicts further inflation over 2013. Prices have risen consistently month by month, and are currently 55 per cent higher than the market low in March 2009.
4. GenevaGeneva has remained popular with investors, given Switzerland’s beautiful landscape, stable financial environment and stunning properties. However, prices fell by 6 per cent in 2012, as the market was affected by tightened mortgage rules and legislative amendments. The price per square foot is currently in the range of $2,720–$3,010, and according to Knight Frank, the prices are set to rise as much as 27 per cent over the next ten years.
Average price change in 2012: -6.0%
5. ParisThe City of Lights may be beautiful, but it comes at a price. Investors can expect to pay between $2,350 and $2,600 per sq. ft. While the city has remained popular with buyers and maintained a thriving rental market thanks to its position as a prime tourist destination, the market has seen fluctuations recently in light of both the Eurozone crisis and domestic taxation issues. According to international property firm Knight Frank, several buyers have moved their interest to other wealthy areas such as the Italian Riviera and Switzerland, after the President called for a 78 per cent wealth tax increase. Prices have since declined 4 per cent.
Average price change in 2012: -4.0%
With an air-tight vacancy rate, the NYC market remains one of the most desired markets in the world. The price of condos in the city increased modestly last year by 0.5% from 2011 to $1,301 per sq. ft. In Q1 of 2013 it was sitting at around the $1,377 per sq. ft. mark. Despite limited supply and tight credit more buyers are entering the market this year than last, as people sought to take advantage of record-low mortgage rates. Signs of upward price pressure are seen with rising demand and shorter marketing times. Similar conditions are expected to continue throughout 2013.
Toronto is unmatched in value for cost per square footage, with the prices still being in the triple digits despite this housing market being one of the most sought-after in the world. The average sale price for condos in the city in Q4 2012 was $536 per sq. ft., up just over 5 per cent from the year prior. Appreciation is fuelled by the continued demand for condos in Toronto that is continually exceeding supply. Investors wanting a piece of prime real estate in North America can pay around $600 per square foot for a condo in Toronto which is about half the price of condos in Manhattan, so it’s no wonder assets in this city are progressively peaking investor interest.
As an investor myself, I know first-hand the importance of choosing the right market, and the best ways to achieve high ROI on an investment. All my clients and I’ve had unparalleled success with Toronto over the years – and you can too. Looking at other desired real estate markets in the world, it’s clear that your money will go furthest in Toronto. You simply can’t get the same value for money anywhere else. You can find some of the best real estate in the world here, with guaranteed price appreciation and a high resale value, all for a fraction of what you would be paying elsewhere.
Get in touch today to learn about investment opportunities in the city, and find out how you too can enjoy lucrative cash flow and a high return on your investment in Toronto.
Source: Yahoo News, CBC News, Financial Post, The Elliman Report, and Manhattan Miami Real Estate