2017 London Real Estate Predictions – Part 2 Influx from Toronto
The Toronto Numbers
London is becoming a hotbed for people leaving Toronto, to find affordable home ownership options, and that trend is going to continue in 2017. Roughly 30% of people that purchased a home in London in 2016 were from the GTA. London is the 11th largest metropolitan city in Canada, is seeing huge growth in the technology sector, and is fast becoming one of the most popular retirement destinations in Ontario. For those looking to enter the Toronto real estate market, a lot of people can be scared off quite easily by the $760,000 average home price cost. That $760,000 doesn’t exactly get you an awful lot. As an average family in Toronto, what do you do when you want your children to grow up in a home you own? Do you spend the extra and buy a home for over $1,000,000 and make yourself house poor for years to come? Or do you look at more affordable options and move out of the GTA?
Let’s compare the GTA to London at an average sale price of $297,000. That looks extremely appealing compared to $1,000,000. The London mortgage payment amount would be $1,400 per month, while the Toronto one would be $4,000 per month (and that included a $100,000 downpayment). Now factor in London’s amenties, two major hospitals, south western Ontario’s children’s hospital, an amazing concert facilty in Budweiser Gardens, km’s of walking and biking trails, Springbank Park, diverse population and food. One of the most appealing things London has to offer, is the lack of gridlock traffic. Don’t get me wrong, London has it’s own traffic issues, mostly due to train crossing and construction, rather than volume.
For those people that purchased in Toronto 15 to 20 years ago, a lot are able to sell their home for close to a million dollars, buy an amazing home in London for $400,000 and add half a million dollars to their retirement fund almost overnight. And it really is that simple. For those who have paid off, or nearly paid off their mortgage anyway. It’s an amazing opportunity for people to either bump up their retirement fund, or to be able to retire earlier than expected and get out and enjoy their life, without the pressures of the work force. This influx of buyers from the GTA is going to make if more difficult for Londoners to buy a home in their own city, not just because of more competition. We’ll talk about that in Part 3 of our 2017 London Real Estate Predictions.