After taking a look at various cities globally for my family, I’ve decided to share some of my thoughts. In this post, I’m going to be comparing the prices of real estate in Toronto with Manchester, London, Vancouver, Montreal, and Hong Kong.
London
Prices in London Zone 1 — going for £2000 per square foot.
Hmm.. To purchase a one bedroom unit, you’re going to be spending approximately 1 million pounds. The rent you would get monthly would be around £2,000, so your gross yield will be capped at around 2.5%.
Manchester
Now, we’ll move into a cheaper area — Manchester. In fact, Manchester is a rather popular location to buy real estate for Asian clients, given that they have no foreign buyer taxes. However, there is one issue — mortgage. Good luck — you’re going to need it with the high interest rates they have. On the upside? The yield is not too shabby, having the gross yield being around 5%.
But wait — remember Brexit? The unemployment rate in the city of Manchester is rather high. Therefore, if you’re purchasing in hopes to get rental income, you might want to consider investing in student housing instead, which can at least offer you an annual return of 8%.
Vancouver
One of my favourite locations in the world, surrounded by nature and mild weather. It’s a perfect place for retirement. The city itself is home to many professional retirees. However, their lack of employment opportunities has put a large dent in their growth, deeply affecting the Chinese capital. With Beijing strengthening their capital outflow, we may not expect the market to pick up much growth again until Beijing relaxes their policies. Currently, a one-bedroom in Vancouver is around the $700,000. If you choose to rent it out, you’d be able to competitively price it at around $2,000 a month, bringing you a gross yield of approximately 3.42%.
Sydney
Given it’s rather isolated location, it’s heavily impacted by the Chinese as well, meaning they would be facing similar problems as Beijing regarding their capital outflow. A one-bedroom in Australia is priced at around $900,000AUD, and you’d be able to rent it out at around $2,400AUD a month. That gives you a gross yield of around 3.2%.
Good, ol’ Toronto
We all know that the Toronto economy is known for its diversity. We have people ranging from IT, Banking. Legal Consulting, and major universities that drive up the population. In fact, our IT industry has been rapidly expanding. In the last two years, Toronto has had more new IT job opportunities added to the market than New York and San Francisco combined.
Toronto real estate is driven by our highly-skilled immigrants, such as doctors, lawyers, accountants, architects, interior designers and IT professionals such as software engineers and developers. These immigrants are coming from a variety of regions too, such as China, India, the Middle East, Russia, and the Philippines. This means we aren’t as heavily impacted by China’s changing policies. A one-bedroom condo in the core of Downtown Toronto is approximately $550,000 and can be rented out at $2,100 monthly. That puts us in a great yield at more than 4.5%!
Related Posts
2022 Toronto Real Estate Market Prediction
Happy New Year Everyone! Here is to hoping that 2022 treats us…
Menkes年度C位大盘Festival Tower即将发售
新冠疫情令许多投资者hold住了买房的冲动，在疫情反复的当下，是现金为王、持币观望还是逢低买入，洼地捡漏，这道难题拦在了所有投资者的面前。让我们将目光拉回2003年的非典时期，疫情过后，北京等大中城市的房价抢高。以北京为例，疫情期间每平米不过万的均价，从2003年下半年就开始回温了，2004年上涨了6.7%，由此一骑绝尘，到5万+、10万+。事实上，疫情向来都不是长期打压楼市的力量，疫情后的报复性消费在房地产行业依然适用。抄底楼市的最好时机是什么时候？正是当下！正是基于对多伦多楼市的坚定信心，更是由于对旺市新区，尤其是VMC发展的绝对看好，我爱我家Ringo置业团队郑重向我们的客户镇重承诺，您置业，我包底；入伙前；不论房价是涨是跌，只要提出申请，我们都以签订合同价回购原售物业。贷款买房的您、再也不用担心租金下降，无力还贷；投资买房的您，再也不用纠结所购之房是否会升值、能否有回报。有了这种武装到牙齿的保证，您还在犹豫什么？一句话，想投资 会理财 从此你不再是小白，你置业 找Ringo 永远不会是空着手！低風險，穩見回報现金流，轻松赚。您也许会问，为什么我们敢包底，那是因为你还不了解旺市，不知道这块土地“旺”在哪里。根据最新的城市建设规划，以及主要地产商的新推楼盘选址，旺市可谓是一片大好光景。想寻求投资升值，或者家庭自住，旺市这片区域都值得好好了解。 Festival Condos，由Menkes倾力打造的豪华社区大盘，将乘着旺市都会中心的发展势头，于今年第二季度推出。Festival 位于Hwy 7和Interchange Way的交界处，处在旺市都会中心南的核心位置。项目规划建设4栋高层公寓，共计住宅单位约1800个。首推公寓将为二栋，推出涵盖1房到3房多种户型，起价仅40多万。这将是旺市罕见的超大规划生活社区，就好比该地区的一只潜力股，一手投入极具升值潜力。 楼盘名称：Festival Condos开发商：Menkes…
Festival Condos, Menkes’ latest HOT project will be launching soon
Despite starting off 2020 with a worldwide pandemic, Toronto’s housing market has…