Thinking of buying a condo? If there is one thing the new home real estate industry has proven the last few years, it is that condominium prices rise over time. One year, ago, the average price of a new high-rise home in the GTA was $450,133; the latest statistics show that has increased to $459,231. In addition, we are enjoying an incredible run of very low mortgage interest rates.
Another thing we have learned over the years is that rates will eventually go up again. When you look at the span of your amortization period, even a fraction of a point different translates to thousands of dollars in the long run. Consider price and mortgage interest, and you have concrete reasons for buying sooner rather than later.
Keep in mind that historically, real estate has also generally been a lucrative financial investment. Unlike stocks, bonds and mutual funds, real estate is tangible and more easily understood by the general public. You can even live in your investment!
The best advice I can give condominium shoppers is to buy sooner than later, and to buy NEW.