I recently heard about an ad campaign that REMAX may be bringing back to life. The premise of the campaign – YOU CAN’T LIVE INSIDE YOUR RSP!
While I can appreciate that buyers are reluctant to enter into the Toronto Real Estate market, there are 2 things working in a buyer’s favour today.
- Interest rates are LOW. The Bank of Canada just lowered the prime rate to 1% and left the door open for further reductions. Buyers need to take advantage of this interest rate environment.
- Over the long term – real estate in Canada and particularly in Toronto has been a great investment.
I will give you an example of home on Booth Ave in the Leslieville area of Toronto. This particular home has been bought and sold 3 times since February 2000
- February 2000 ——– $55,500
- June 2003 —————$280,000
- June 2007………………..$450,000 (During this sale, I was the listing agent)
This is a 710% increase in 7 years. I have never heard of these kinds of gains in any mutual fund!
As you can see, not only do you get to live in a great home, but from an investment point of view, owning real estate in Toronto is a great opportunity. Further, there is an added bonus. When you sell your principal residence, the profit that is made is TAX FREE.
The current market conditions present an amazing opportunity for buyers. Take advantage of it while it lasts!
Sam Soukas
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