All about the real estate in Toronto
Toronto is the fifth largest city in North America, and the largest in Canada with a population of roughly 2.6 million. Now with immigration increasing it is sure to continue to grow and expand. Currently Toronto has more top-ranked companies (both nationally and internationally) than any other Canadian city and is Canada's economic capital. If you are looking for a city filled with opportunity, this is it.
Real estate plays a very important role while considering the economy of any country and when it comes to the global real estate market, Canada plays a very important role. It is Toronto, which has boosted the real estate market in Canada.
Considered the most sizzling city of Canada, Toronto has a social culture, which is beneficial for a perfect real estate market. Toronto is a mix of vibrant culture; beautiful architecture spreading across the city and a great historical background. It is a place, which has a large educated population. All these play a vital role and are the major reason behind the immune property rates in Toronto compared to other parts of the world especially during the US crisis. Both the residential and the commercial properties in Toronto have gained a good real estate value.
Real estate in Toronto is said to be the base of the Canadian market especially since the past 10 years. It is a pillar of strength for the Canadian real estate market. Organizations like CMHC (Canada Mortgage and Housing Corporation) have given rates for the properties in Toronto for the coming years. They use factors like mortgage rates, income, employment and various demographics in which the property is located.
Whenever the rates are higher it would reduce the housing demands and this is the reason why the mortgage rates are having a greater impact on the real estate market of Toronto. If the mortgage rates are higher than the price of the house, the price of the house also raises and thus it gets difficult for the first time home buyers to buy a property in Toronto. During the past few years it has been observed that the mortgage rates have gone up a bit and due to it even the property rates have been increased in Toronto.
Real estate in Toronto has been successful due to 2 major reasons. The first one is the employment ratio and the second one is the average income of the population. The majority of the Canadian population have a full time jobs and thus the income would also be more. The country is in general need for a work force. All of these factors would contribute towards the increasing need to buy property. If people are earning more they should have more money to spend somewhere.
Human migration also plays an important role in the Toronto real estate scenario. More and more people are migrating there and it is great tourist destination. This influences the potential buyers to acquire property here so that they can get more on their returns. This also contributes towards higher mortgage rates. Foreign investors have purchased a larger number of luxury properties in Canada. In fact these investors are the major buyers when it comes to luxury properties.