Well for those that have been speculating about a Condo Bubble, or a Condo Market Crash in Toronto, looks like you might have to wait a bit longer. It appears that renting a condo in Toronto is now going to cost your more according to the Toronto Star Rents for Condo in the downtown core have now surpassed $2500 dollars per month for a two bedroom unit, meaning condo investors can pocket between $20,000 to $30,000 per year on their investments here. If you are using a standard Finance practice and a proper business return is about 7-8% per year on your property a condo true value would be between $300,000 and $400,000. And that is basically in line with condo pricing as it stands now, and is probably the reason, there has been little price drop in Toronto Condos even with word of the impending condo sales slowdown.
Lets face facts, because the employment sitution is kind of lop sided in the downtown core, with an ambundance of high paying financing and banking sector or related jobs, there is going to be a major premium associated with renting a proper space in the core, which is likely going to justify a $300,000 to $400,000 dollar price for a condo here. Those dreaming of some super United States Meltdown to happen here, will likely be waiting a very long time for this to occur.
But keep your fingers crossed naysayers, anything can happen......
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