USA loses AAA credit rating
Following a week of market losses Standard and Poor’s downgraded the United States credit rating from AAA to AA+ on Friday. Volatility has been constant since the market fall of 2008 and is certain to continue as the markets officially react to the news.
Investors of all sizes are diversifying their portfolios to include heavy weightings of real estate which have proven to be low volatility. Real estate is priced based on pure demand and supply pressures. In Toronto the demand will continue to increase as the population grows. With limited development of high speed rail corridors to the suburbs there is only so much sprawl that can be supported limiting supply which pushes the price of existing stock higher.
With hardly any new apartments being built small investors are becoming landlords by purchasing one or a few condos and renting them out to pay the mortgage. With long term investing in mind this type of investment can create excellent cash flow and quickly build equity for investors. Renters benefit from modern buildings with excellent amenities.
Supply is almost completely static in terms of single family houses in the city. We’ve recently seen surges in the price of houses in neighbourhoods close to downtown such as the south east end of the city (South Riverdale, Danforth, etc). With interest rates at historical lows homes which may have been previously be considered undesirable have been renovated or are purchased with renovations in mind.
If you’re considering diversifying your investment portfolio to include real estate contact Spring Realty today.
What Spring is saying
In an effort to accommodate the new street-cars and upgrade some ageing infrastructure at the track level, the TTC has had to shut down BIG intersections in Toronto’s East end communities of Riverside and Leslieville. Sure, residents are inconvenienced, but more importantly the local businesses are suffering. Some businesses report losing up to 70% of...Read the full post
We get so much from the awesome communities we work in that we didn’t even hesitate at the opportunity to sponsor one of the Movies in the Park nights. I mean who wouldn’t want to enjoy Godzilla and King Kong duke it out under the stars at Riverdale Park East? Movies in the Park at...Read the full post
Back in February I noticed people begin to pay more attention to condos. In fact, when other Agents and Buyers were trash talking condos our clients were scooping them up. Why? Because there wasn’t any competition and we could feel that prices were on the rise. Economists can analyse, speculate, and report all they want...Read the full post
Toronto New Developments and Occupancy Fees.Read the full post
We recently sold a property that went for a lot more than expected (no it wasn’t a house) and much quicker than expected. While at the clients home to sign the final paperwork they said: so how about a rebate on the commission since we sold so fast and didn’t take up much if your time? Sometimes...Read the full post