Toronto Investment

Why Investment in Toronto?

• Toronto investment will pay off because Toronto is the largest city in Canada and 6th largest metropolitan in North America coming after New York City, Los Angeles, Mexico City, Chicago, Miami. • Toronto is Canada’s largest financial centre, and is more than twice the size of any other Canadian financial centre. • Toronto employs more people in the financial sector than any other Canadian city, approx. 35% of the national workforce. • The Toronto Stock Exchange (TSE) ranks as North America’s third largest by dollar value traded and is the tenth largest stock exchange in the world. • Toronto has been voted the most cosmopolitan and best multi-cultural city in the World five years in a row by United Nations, a symbol of Toronto’s openness to diversity and multiculturalism. • The GTA is within a 810 Kim radius (one-day drive or 1 hour flight) of 141 million people. • Through NAFTA, Canada is assured long-term access to the North American market over 432 million people, with a combined GDP of more than $11.8 trillion. • Close to 160,000 businesses or 14% of all of Canada’s businesses are located in the Toronto area

Incentives for business in Toronto

There are a variety of incentives which make Toronto investment attractive, including Toronto's first-ever city-wide financial incentives program Imagination, Manufacturing, Innovation, Technology (IMIT) Grants.

The incentives support new building construction and/or building expansion and stimulate growth in key value-added economic sectors, including manufacturing, biomedical, environmental, information technology, creative industries and tourism.

• Investing in Toronto condo is less complex than other investments • Property consistently outperforms inflation other investments • Toronto property Investment vs. the Toronto Stock Exchange • Property = Equity. Equity = Leverage Opportunities • Tax advantages of Property investments

Real Estate Is Less Complex Than Other Investments

For the novice investor and experienced investing aficionado alike, a great advantage of real estate compared to other investment instruments is its simplicity. Market factors that shape the performance of real estate values are pretty basic. Space is limited and population is growing. As more people a competing to find living space in a finite supply of property, values will rise. It is that simple.

The uncomplicated nature of real estate investment is a major reason why it is such a consistent and stable investment option. An experienced Toronto investment consultant can guide an investor through the process with great success and clear counsel. You can and will be confident in your investment.

Property Consistently Outperforms Inflation Other Investments

One constant in the economy is inflation – the increase in average prices. Simply put, over time a dollar is worth less; its purchasing power diminishes as prices grow. To apply the power of inflation to an assessment of your investments, you must realize that your assets or investments need to appreciate at a greater rate than that of inflation.

The average rate of inflation since 1913 has been about 3.5% per year. That means if you are getting a return on an investment lower than this, you are actually losing money. Historical trends have real estate appreciating approximately 5% to 6%.

Toronto Investment vs. The Stock Exchange

This chart is a great example proving the above points and showing how property holds up in an economic downturn. It is worth noting that historical trends are also teaching us that economic downturns like the great recession we just went through, will continue to happen more, and wreak greater havoc on our markets.

This data tells us some valuable things about the stock market and how it compares to Toronto investment. Two and a half years following the economic troubles at the end of 2008, we see the stock markets have yet to regain all that was lost. GTA real estate values returned to their high levels in one year.

It is also worth noting that the impact of the losses in the stock markets was strong compared to the relatively minor blip taken on by property. In short, the major economic crisis of 2008 revealed the instability of stocks vs. real estate and the quick rebounding power of property investments compared to the more speculative stock markets.

Property = Equity.   Equity = Leverage Opportunities

With property as the cornerstone of your Toronto investment portfolio, you are in a great place to take your financial stability and wealth growth to the next level.

Diversification is the most effective strategy to develop a low risk investment portfolio. If you are heavily invested in real estate, it is wise to diversify your holdings; include different types of property or properties in different markets. If you are investing in the stock market, explore many different industries and levels of risk. And of course, don't rely solely in property, or stocks and bonds, or any other investment group. Diversify.


With this equity you will qualify for large low interest loans. Therefore, as your original Toronto investment property continues to appreciate in value, you have access to more capital to invest in other wealth generating instruments. It is this dynamic – leveraging your home equity – people are talking about when they say, “It takes money to make money.”

Tax Advantages of Property investment in Toronto GTA

Some of the nicest advantages about Toronto investment are the tax exemptions on your principal and investment income property. There are more tax exemptions available in real estate property investment than any other investment.

If your property investment is your principal residence, the appreciation the property has gained is yours, tax-free. No other investment has this golden benefit.

*This means that 75 percent of your capital gain is taxed at your marginal tax rate, while 25 percent of the gain is tax-free! This 25 percent tax-free profit can quickly add up when you own multiple properties.

For residents of Canada, including those in Toronto, investment comes with several opportunities for lucrative tax deductions. Most people know that for rental properties, mortgage interest, property taxes, property management, maintenance and repairs can all be deducted from the owners income tax. But, there are many other tax exemptions and advantages.