FIVE of the Top 10 Cities for Real Estate Price Growth in North America are in the GTA
Wednesday Feb 27th, 2019
Check out this study. It is very impressive to see Canadian cities performing so well in this study, but I know that people will look at this news from very different angles..."Will prices keep going up for the next 5 years?" "Should I sell now because we are at the top?" "Should I buy now before prices go even higher?" No one can predict the future and if you are trying to time the market perfectly, it will likely fail. You don't know how many times over the past 10 years I heard people say that the Toronto condo market was over-priced and they were waiting for a correction before buying...Well back then (January 2009), the average price for a condo in downtown Toronto was around $310K and people thought that was a fortune. Today (January 2019), the average price for a condo downtown is over $660K and a new wave of buyers are looking at them like it is a fortune and trying to decide whether they should wait for prices to come down before entering the market.
History has shown that real estate is a safe investment if you are planning to hold it for the long term. There will always be short term peaks and valleys but over an extended period, property values have appreciated.
Now, lets look at this from a different perspective. Lets say the value of your home hasn't gone up between when you bought to when you need to sell (or worse, it went down). Well, if enough time has passed (at least a few years) you will have paid down a portion of your mortgage which should still yield you a profit when you go to sell versus if you were renting over that same period. I know there are many people out there that will tell you to rent and take the difference between your monthly rent and what it costs each to own a home (property taxes, maintenance, mortgage payments etc.) and invest it. But the reality is that most people aren't disciplined enough to do this ever single month nor are they savvy enough to saftely invest this in the Stock Market and produce consequtive positive return.
So if you have saved enough for a down payment, and aren't planning to sell your home immediately after you have purchased, you can still buy today and rest assured that you are making a sound financial decision for your future.
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