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
Here at Spring Realty we’re always studying consumer habits. What drives people to make purchasing decisions, etc… We’ve come up with a fool proof “Should I buy this home” test. So without further ado, here it is! How do you know a home is a good fit for you? Simple: when you walk in, do...Read the full post
New Development in Leslieville East A little while ago we reported that developers were getting set to announce some serious plans for development along Queen Street East in Leslieville and Riverside. Back in August a development group named Trolleybus (um kind of a ripoff of Streetcar…) held a meeting with the BIA and local property...Read the full post
Here’s what you can get for a mil and up in E01: South Riverdale – North Riverdale – Blake/Jones. 68 Harcourt Ave – $1,050,000 This big old house needs to be brought to 2014 but once it is, we’ve seen comps sell for much more. With a fully detached, two car garage and solid bones...Read the full post
Our previous post titled: “Just show up in places and be human” got us all excited at Spring HQ. It also helped us realize that people want a home, not an Agent. So we’ve decided to stop talking so much about ourselves and focus on the ultimate goal of finding or selling your home! Sure, we’ll still share...Read the full post
Show up in places and be human. This phrase has been resonating through my body since one of my favourite speakers, Seth Price of placester.com said it during his talk at Agent Reboot in Seattle this past week. How simple is that? Just show up, and be human. What does this mean to us? This...Read the full post