In this current market we are experiencing high levels of rent in the GTA and across Canada. According to Canadian Mortgage Trends—“The average rent for all property types listed on Rentals.ca in August hit a three-year high of $1,959 per month, up 1.3% from July and 11.1% from August 2021, according to the site’s latest national rent report. Rents have now risen 16.8% since hitting a low of $1,676 in April 2021”. As a homeowner you may be pondering on the concept of turning your basement into a rental in this hot market, or purchasing a rental property just for the sake of making some extra cash, but there are a few things to consider before making that leap. Since no one can really time the market, you have base your decisions on patterns and news from the Government of Canada and in some cases even the United States, because Canada usually follows suit.
There are so many things to reckon as rates keep changing and talks of possible recession due to inflation. An educated advice I will provide would be to save as much as you can, till you come across an opportunity that you cannot turn away from and that makes sense to you financially. Either you are an investor looking for a cash flow investment or a home buyer looking for your first home, this advice of preparing yourself for a potential recession will definitely apply. With capital on your side, you are ready to action the rising opportunities in the coming new year. There is no way to time the market, what you can do is keep up with the market trends and follow articles and news that pertain to the market, if you feel like that is too much work on top of everything happening in your life, then give me a call and lets see how we can structure a plan for you.