An interesting open secret within the Toronto real estate market is that many foreign property investors and home buyers see the city as the new alternative to New York or London for buying property. Many Years ago, that was simply an unheard of thought. A second mortgage Toronto property was tremendously undervalued just a few years ago. But no more. The secret is out and foreign interests are running to take advantage of the capital opportunity presented to them. Many foreign nationals now consider Toronto to be the condo capital of the North American continent.
What is Different Now Compared to Then?
There have not been any formal studies as to why this is happening now. But other prime real estate markets around the globe are not what they used to be according to experts in the field. The pickings have become slim to non-existent in New York, London or Tokyo. Condos in these areas are standing empty for months at a time, especially during the ongoing economic crisis. Canada and Toronto in particular have managed to fight off the problems plaguing the rest of the world.
Canada Differences Matter
The shift to Canada for primary residences is happening primarily because it is not as populated as the other cities in the world. What population there is cannot solely support the current real estate supply of homes available in the country. With that in mind, the Russians, the British, the Japanese, and of course Americans are crossing the borders looking for Toronto Real Estate deals. Surprisingly, the country whose citizens are doing most of the buying are is Iran. Iranians have become Canada’s biggest real estate investors.
Toronto is the most visited city in the world. It offers a great quality of life at a reasonable cost of living. That makes it just about perfect in the minds of most people. It is also more stable than many of the more popular destinations south of its border, in America. Another reason Toronto attracts people is because of its already diverse population. There are few reports of racial discrimination out of Canada as there are from, say Australia or America. Canada and Toronto in particular have been seen as being a very tolerant country and city.
Now a Haven for the Rich and Famous
Toronto used to have a reputation of being North America’s backwater colony. But that is now not the case. With the prices of American real estate entering the stratosphere, people are now tending to buy close so to speak if not in America to benefit from America. The boom in Toronto began in earnest in 2007 and continues today regardless of the current economic crisis. Prices are lower, yet are stable, proving the overall stability of the Toronto real estate market. The foreign influx into the market has seen some very famous and wealthy names taking part in the property grab consuming Toronto. This property grab has pushed the per foot cost of a Toronto unit upwards to about $1500.