In a recent survey by the rental agencies and real estate builders, it was reported that the condominiums rentals are getting expensive and it is not an easy deal to get a new house in Toronto. The prices of the condos which one was getting in 1600$, has increased to 1900$ which makes difficult for college students to book one in the greater Toronto area. It was stated by many agencies that the stressed rental markets generally feel pressure during the third quarter of the year which includes June, August, and September. Because during this quarter the schools and colleges start and more students come to book new condos on sale in Toronto so the demand is always higher.
The demand becomes higher for new students as they come to enroll in colleges and schools from different parts of the world. The real estate brokers take the advantage of their unawareness and therefore the new students pay them exorbitant prices for condos. One more flaw in the rentals market was found by various online websites. Once the student’s book particular condos after paying the demanded rent and start staying then after two or three months again the prices of the condos rise and many say that getting condos rentals is like a trap.
Reasons for expensive condos
There are certain imbalances in the economic structure of Toronto real estate structure which is making condos so expensive. The reasons behind them are many; let us have a look over these reasons.
Access to goods and services
It was observed that in the greater Toronto area where most of the condos are located demand for high rent. The reason is the access to various types of services like medical facilities, school and colleges makes the demand of that place high, thereby increasing the prices for condos in that area.
It is seen that most of the investments in public infrastructure are done on a large scale in Toronto compared to other cities. Also, there are many renowned companies located over here which earns huge profits so the landlords are taking advantage of this assuming that the person who stays here is capable of paying high amount.
Because of the high-end real estate market in Toronto, the foreign investors are paying huge money to the owners of different housing companies which have subsequently increased the prices of the condos.
With the above-mentioned reasons which are making new condos for sale in Toronto very expensive the government of Toronto will have to find the alternative routes to benefit its citizens. If this doesn’t happen then landlords will take advantage of the supply and demand, which in turn will get difficult for college students to find new condos in Toronto. Government should thus make it more affordable to the citizens and even outsiders so that can also enjoy the benefits of real estate in Toronto. Such efforts need to reduce the real reasons behind their expensiveness and elimination of intermediaries who consume lots of money of the buyers. This will make them easy to get new condos for sale in Toronto.