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Toronto real estate has been hot for a while, but in the past year, demand has reached a fever pitch.
Perhaps it's the millennial crowd, newly monied and tired of renting, who are driving the current boom. Maybe it's a self-feeding sense of FOMO (fear of missing out) where buyers feel like they need to act now, lest the increasing prices leave them in the dust. Indeed, a large part of the explanation lies in historically low interest rates.
Whatever the reasons, the real estate market is scorching in Toronto. But that shouldn’t dissuade you from buying. For all the reasons listed above (you’re tired of renting, prices could continue to rise, and interest rates are low), now may be a great time for you to buy.
If you’re considering buying right now, there are a few things you should keep in mind. Consider this post a navigational tool for wading into the hot Toronto real estate market.
Stay Safe Out There
Let's not forget that this real estate boom coincides with another unprecedented phenomenon: COVID-19. Ontario remains an epicentre for viral spread in Canada, which means house hunting may look a little different than normal.
Virtual showings are the norm, though you may still opt to do a walk-through. If you are entering someone else’s home, wear a properly fitted mask. The Government of Canada recommends a mask with at least two layers and a filter in the middle. Bring hand sanitizer (though some should be provided for you). And ask that the windows be opened prior to your arrival.
Team Up with an Online Real Estate Lawyer
An online real estate lawyer in Toronto will help keep you safe – in more ways than one.
You need an experienced legal professional to review your agreements, conduct a title search, review your mortgage instructions and act as a communicator among the parties involved in the sale. In this way, they help protect you from bad deals, fraud, failed transactions and missed deadlines.
An online lawyer also helps keep you safe because they are contactless. There is no need for in-person meetings.
Determine Your Comfort Level with Risk
Bully offers and subject-free offers are on the rise. Buyers sneak in early or head into bidding wars all too ready to dispose of subjects. Are you comfortable with that level of risk?
That’s the question you need to ask yourself. If you aren’t comfortable removing subject to’s, either because you aren’t sure of your mortgage eligibility or require thorough inspection, don't give in to the pressure. Stand your ground and wait for acceptance on your terms. If you are comfortable with the risk, or are pre-qualified and confident, use that comfort to your advantage.
Good luck out there. It’s a red-hot market, but prices may continue to rise further in coming years. Protect yourself with some common-sense COVID precautions, an online real estate lawyer and a firm understanding of the risks and rewards involved in staying competitive.