Should You Sell Your Home Now? GTA Real Estate Tips

GTA-Homes’ Advice

Here is what we advise Albert, and it’s something we say to our clients time and time again. The real estate market is cyclical! While the current condo market may be the slowest it has ever been in about the last 30 years, we have seen that it is never permanent. Real estate goes through its ups and downs, and we have decades of past evidence that the market will recover with time.

Condo prices will rebound in a few years, and even more so because a housing shortage is expected to hit within the next decade. We also always recommend that our clients hold property for as long as they can, as investing in real estate should always be for the long term, and properties will appreciate in value over many years without fail.

Although Albert has a mortgage, he fully owns a condo in an amazing location in the heart of the downtown core. We have offered him 3 possible options depending on his current finances:

1. Turn It Into a Rental

If it is within Albert’s budget, renting the condo unit out and buying his dream home could be a very smart move. He can pivot from being just a proud homeowner to also a smart investor, allowing him to pay off his mortgage with rental income. Downtown Toronto has a highly in-demand rental market, and Albert’s condo enjoys a prime location near a subway line, which makes it desirable to renters. Holding the property will allow him to generate passive income while still building equity in his home over the years. So, if Albert is able to manage his finances, he can definitely have his cake and eat it too.

2. Sell to Buy a Bigger Property

The current market has lower average home prices and higher inventory than usual, which is advantageous for buyers overall. As Albert knows that he will eventually be moving into a larger home with his future wife, he can sell his condo and use the profit he receives towards purchasing now. He may sell it for less than he would in a few years, but he will be buying a bigger home for cheaper as well.

3. Consider Holding For Now

If Albert is tight on money and cannot afford to buy a bigger house in today’s buyer’s market, even after selling his condo at a loss, then the recommended option would be to hold. As Albert doesn’t need to move immediately, he has the option of waiting a few years until he relocates with his future wife and his condo value goes up in price. This will allow him to monitor the market and sell when it is more favourable, and he will then have the capital to buy their dream home.

Alternatively, he can refinance his mortgage when the time comes so that he can still keep his condo as a rental property and use the remortgaged funds to help buy their future home.