Real estate in Toronto is the real deal
Stephen Dupuis – Toronto Sun
When the world’s most influential leaders gathered in Toronto for last weekend’s G20 summit, I couldn’t help but wonder how they view our city’s economic structure, particularly the housing market’s impact on the national economy, assuming of course that they can see anything over the fences and barricades.
While I’m not an expert on the real estate industry in China or Saudi Arabia, I can bet that their housing markets differ considerably from that of Toronto.
So much, in fact, that it’s no wonder that a lot of the new developments in our city are viewed as solid investments in countries in Europe, Asia and the Middle East.
While some international buyers can invest in multiple properties in their home countries, many opt for the much more affordable option of investing in new homes in Toronto.
Foreign investors see the value of having a healthy, stable Canadian housing market.
In fact, I wouldn’t be the least bit surprised if some of the attending finance ministers might be tempted to snap up a penthouse or suite in the downtown core.
Pricing is affordable, while construction-related job creation is averaging around 170,000 per year over the last five years in the GTA alone.
In fact, by the end of this year, the federal and provincial governments will collect $4.5 billion in tax revenue thanks to the housing industry, which is no small potatoes no matter what country you’re from.
I expect that number to grow with the newly implemented Harmonized Sales Tax (best known as the HST) taking effect next Thursday.
While I don’t know how many of these purchases were made by foreign investors, I can tell you that some of the newly launched high-rise developments in the city have surely garnered some international attention.
Among world’s best
This is evident by the tremendous outcome of this year’s National Sales and Marketing Awards in Las Vegas, where Toronto home builders picked up 25% of the awards, overtaking a predominantly American roster among other international nominees. This just goes to show you that our industry can take on the best in the world and still come out on top.
Where other countries have struggled, Canadians have flourished and despite what some sources will tell you, expert analysis has shown that there is no bubble on the horizon.
A strong recovery from the global financial crisis a few years ago was a sturdy indicator that our housing industry is well regulated to a point that it can survive an economic decline and bounce back relatively quickly, leading the way to a stable economy.
Organizations such as the Canada Mortgage and Housing Corporation, Tarion Warranty Corporation and BILD have a healthy relationship with industry leaders and various levels of government to ensure a good work ethic. The end result is a housing market that provides a positive impact to not only the economy as a whole, but to all parties involved. This weekend’s guests better take note!
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