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
We're usually not as blunt as the title of this post but that's because we know how to not be dicks during listing presentations. I mean, we do the work for you and pay for it anyway so the only thing you need to do is allow access...simple right? So why do so many homeowners resist our design suggestions?Read the full post
Bill Hicks, Leslieville's newest dive bar to open up on Queen EastThe new tenant at the old Swirl Wine Bar spot is finally ready to announce his new endeavor. Don't worry folks, this isn't another Read the full post
We've just about had enough with the generic bullshit that wanna-be house flippers are slapping together these days. Seems as though this hot Seller's market has tickled the lazy bone in investors. Guess what: Buyers see right through you and aren't making offers on your crappy renovations! Home Buyers have been through a lot in the past decade. Well, we've reached a tipping point and Buyers have become more educated. Not only are they making stronger buying decisions, they've started to realize they may have a bit more power than previously thought. Read the full post
The Five Man Electrical Band hit the nail on the head with their song: Signs. Released back in 1971 and still loved today. One of my favourite songs and perhaps the reason why I've never really appreciated the traditional sign. I feel like if you don't want me to do something you've got to make a stronger statement than simply posting a boring, badly designed, poorly executed sign.Read the full post
The Human Rights Tribunal in Ontario is heavily focused on upholding tenants rights and spends very little time addressing the many vulnerabilities of Landlords.Read the full post