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
Alert – Aware – Share As a resident and business owner in Toronto’s East End Riverside & Leslieville I (we) am always concerned with neighbourhood safety. Due to the recent incidents at The Bone House on Queen, Orchids Hair Studio, Restore Health, and various thefts and break-ins throughout the East End the Leslievlle BIA, which...Read the full post
Townhouses in Toronto up 20.7% It’s really no surprise that town-houses are dominating in gains this month. Why you ask? The average buyer is getting priced out of semi-detached and detached houses so they’re scooping up the less expensive town-house. Sure, town-houses come with monthly maintenance fees that range from $40 to thousands per month....Read the full post
If you’re a Buyer in the Toronto Real Estate market, especially in Leslieville, Riverdale, Roncesvalles, Junction, and many other Toronto neighbourhoods I’m sure you’re familiar with this phrase: Offers will be accepted on XXX Date at XXX Time. Please bend over and take it as we’re hoping to get as much for this house as...Read the full post
Spring Realty is Hiring! As we approach our 3rd year in business we’ve finally got a solid grasp of the: Who and Why of Spring Realty. We’ve gone through some staffing changes this year. We’ve added a top notch Client Concierge to make sure the people that trust us with their business are well taken...Read the full post
Did you hear about the couple in California that stumbled upon a 10 million dollar treasure in their own back yard? What does this have to do with Toronto Real Estate you ask? Well, if you’re a Buyer in this market being able to successfully find and buy a house has become almost as rare…and...Read the full post