Affordability continues to be a pressing issue in the Greater Toronto Area (GTA), but new data shows that investors remain motivated to invest in real estate. According to a report from Royal LePage, 64% of investors in the region own one income property, while 34% own multiple properties. Furthermore, almost half (47%) of GTA investors plan to add an additional property to their portfolio by 2028.
Mike Heddle, a broker with Royal LePage State Realty, says that today’s consumers are more educated on what it takes to invest in real estate, and interest in investing is on the rise. He points specifically to “savvy millennials” who are aware that the GTA’s market is supported by strong fundamentals and are eager to tap into the market as a business endeavor.
Despite diminished purchasing power, the most popular type of investment property amongst GTA investors is single-family homes, with 44% saying they currently own this property type. Condos, which have garnered quite a reputation for being heavily investor-owned, follow closely behind, with 39% reporting they own this property type.
However, the challenging market conditions cannot be ignored. Higher mortgage costs and neutralized or decreased monthly income make today’s market a challenging one for investors. As a result, 36% of GTA investors say that increased lending rates have caused them to consider selling one or more of their investment properties. This figure is higher than its national counterpart (31%), as well as the corresponding figures in Greater Vancouver (28%) and Greater Montreal Area (26%). Additionally, 24% of GTA investors indicate that they are likely to sell one or more of their investment properties within the next two years.
Despite these challenges, the report indicates that more than a quarter (26%) of Canadians have plans to purchase an investment property in the next five years. This suggests that consumers remain confident that investing in real estate is a worthwhile endeavor.
The report’s findings are based on an online survey of 1,003 Canadians, aged 18 and older, completed between March 2 and March 17, 2023.
In conclusion, while affordability remains a concern for investors in the GTA, the region’s investor landscape remains strong. With almost half of investors planning to add an additional property to their portfolio by 2028, it’s clear that there is still a strong desire to invest in real estate. However, investors must navigate the challenging market conditions, which include higher mortgage costs and neutralized or decreased monthly income.
- Real Estate Investment
- GTA Housing Market
- Property Management
- Real Estate Market Trends
- Rental Properties
News Source : STOREYS
Source Link :Single-Family Homes the Most Popular Investment Property Type in GTA/