Toronto: the hottest Condomania market in Canada

Nov. 3, 2011 - PRLog -- www.preigCanada.com | www.WorldWealthBuilders.com

Forbes magazine ranked Canada as the best place on the planet to do business. The U.S. came in 10th. As the economic hub of the country, responsible for fully 20 per cent of its GDP, Toronto benefits greatly from such global attention.

“Canada is seen as a safe haven for foreign investment, especially for middle eastern and Asians,” said Navtaj Chandhoke, founder of World Wealth Builders, a Canadian Real Estate investors training centre. “The appreciation and rental demand also got the attention of Canadian & international Real Estate investors.”

“The average home price in Canada has increased by 160% since 1990, mortgage interest rates have decreased by 60%.As a result, over the past decade, the average mortgage payment has increased by approximately 25%,“ said Navtaj Chandhoke.

The attraction for investors is simple math: with a market that in recent years has appreciated 8 to 9 percent annually, even the smallest units are an attractive investment. Bought “pre-construction,” condos are worth considerably more by the time they’re built. It’s estimated that fully 60 percent of the units sold in the Toronto market are snapped up by international investors, many from China and South Asia.

There were132 high-rises under construction in Toronto in September 2011 with another 120 projects in phases of “preconstruction”. That is far more than the next most-active centers, Mexico City with 88 on the way and New York City with 86.

The city is also a major immigration destination. An estimated 100,000 new residents move into the greater Toronto area each year. The growth rate is closer to that of cities in Asia than any in North America. Immigration rules favor migrants with assets. This means that many jump quickly into a housing market that, despite rising prices, is still a bargain by international standards.

Bank of Canada Governor Mark Carney warned earlier this year that too much inventory could lead to “the possibility of an overshoot in the condo market" in Toronto. Canadian Real Estate analysts have been predicting for years the end of the Toronto boom, and so far they’ve been wrong.

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Navtaj Chandhoke is a Canadian-based real estate investor, speaker, author, educator and the founder of World Wealth Builders, leading RE investors education,mentoring, support and network of over 5050+ Canadian investors.
www.WorldWealthBuilders.com | www.preigCanada.com \