Fast growth of downtown Toronto is balanced out by stable demand for other well-known neighbourhoods in the city, their reputation, green zones and good air quality. Buying a house in Toronto means investing into an even-growing real estate market in Canada. The area and the amount of land surrounding the house play the biggest role where prices of houses in Toronto are concerned. Other factors are secondary.
For $700,000 you can buy a medium-sized house in a good neighbourhood of Toronto, for example, in the Beaches or in Etobicoke. The Beaches area is famous for its stretch of sandy beaches along Lake Ontario, hence the high pricing and high respectability of real estate here. Etobicoke is found on the west side of the city, it is a large area with several good neighbourhoods and a lot of choice. Interesting to note that some families here live in one house for generations and sell rarely and reluctantly.
There are three neighbourhoods in Toronto that are considered the most prestigious (sometimes even too prestigious): Rosedale, Forest Hill and Bridle Path. All three boast high dedication to exclusivity of houses' exterior design, hence the unique look of properties there; Bridle Path is also famous for being home to politicians' mansions and property of the wealthiest Toronto families. A starting price of "admission" into Rosedale or Forest Hill hovers around $1,500,000, and in return you get respectable neighbours, valuable business connections and high property taxes. Bridle Path costs even more: properties for under $5,000,000 rarely go on sale here.
New residents of Toronto start thinking about purchasing a home for themselves (or for rentals) fairly quickly: low-interest mortgages (starting at 3% in May 2012) are available, plus the advantages of paying for your own home instead of renting are apparent. Usually, banks approve mortgages for up to 95% of the house cost, but it is in your interest to make the down payment higher to lower the interest you will be paying. Mortgage amounts are government-regulated and may not exceed $1,000,000, therefore you will need more cash to purchase a mansion in Forest Hill or Bridle Path.
If you are interested in buying a house in Toronto, get in touch with our registered real-estate agents working on the Canadian market - they can help you choose an option that is best-suited for your needs and your budget. Please use our feedback form or give us a call to get started.