If you are a real estate investor or thinking about becoming one, now is the time to buy! Why? The new mortgage stress test which is now in effect as of January 1st, 2018 will likely keep buyers who would have otherwise qualified for a mortgage in a rental property or looking for longer term leases until they are able to qualify for a mortgage.
This is great news for investors! These potential tenants are individuals who have good credit and are high income earners but because they may be first time buyers, they would not necessarily qualify for a mortgage or get the level of approval they are seeking for the type of home they want to purchase. There will be an estimated 40% of individuals in the middle income earning bracket that will be removed from the purchasing market because of this new mortgage stress test. With this in mind plus the shortage of rental properties in Toronto, potential renters are looking elsewhere to find accommodations. Small towns outside of the GTA such as Grimsby, Smithville, Beamsville and further west to Brantford are some of the hot pockets for investing right now. With the expansion of the GO Transit extending to Grimsby by 2021 and further to Niagara Falls by 2023 and providing commuter service to Downtown Toronto, we will be seeing many more buyers and investors exploring the west end to make real estate purchases.
If you are an investor or are thinking of becoming an investor in real estate, there could be no better time than the present. We can help you find that perfect investment property and assist you in finding an A+ tenant. Hop on the investment train, we service all stops heading west from Union Station right to Niagara Region!
