If you’re reading this then you’ve likely made the decision to move to Toronto, or are at least considering it. Toronto is an amazing city and has a wide cross-section of different neighbourhoods and people you can experience. The most important thing to keep in mind if you are moving here is that real estate is actually quite expensive. In other parts of the world it is completely plausible to think you would be able to own a house, but the dynamics of real estate in Toronto mean that isn’t always true.
The last decade has seen massive returns on the real estate within Toronto, which has led to a few different results. First, many people who wished to have a house for their family and not be stressed about being able to afford it have moved to suburbs of Toronto. In this way, the City is a lot like any other major city that has undergone rapid expansion.
Similar to that first effect, we have seen many homeowners who had earned an incredible return on their homes decide to exit the market and go to the suburbs or a condominium. This “profit-taking” has led to a frothy market as more people jump in thinking they are going to make a profit and then exit the market before any negative returns can occur. More and more house sales are being done as this effect continues, and it can be rather daunting to look at in the beginning.
Because of this, you might think that it is a better decision to live in a condo. This trend has been fairly widespread across the city as couples realized that a house wasn’t entirely necessary to fulfill their needs. The condominium market offers the chance to live much closer to subway stops, or even be located downtown. On a per square foot basis including land, condos are generally priced lower since there is a much smaller amount of land allocated to the property. This then comes with the trade-off of no backyard and having to take the elevator every day.
All of this is to say that in Toronto you will face lots of trade-offs. Do you want a backyard or a short commute? Do you want a car or a transit pass? All of these decisions come together to help you decide on where you want to live. Cost can be majorly prohibitive, and the last thing you want is to be financially burdened by your home. Figure out what you want first, and then take those preferences to the market and make sure you don’t overstretch in your quest for the perfect house.
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