Toronto Income Property Newsletter: Fall 2025
Will they, or won’t they? This is the big question surrounding lowering interest rates. With the prospect of another upcoming Bank of Canada interest rate drop and a looming tariff deal with Trump, a lot of people who have been waiting on the sidelines may decide to jump back into the Toronto real estate market. We have seen precipitous price drops across the board because of this widespread uncertainty about borrowing rates and the economy. In the past twelve months income properties have still been fine plays for buyers who live in them, but not so much for the bottom-line investor. It is much more desirable to carry a duplex or triplex at a 2% interest rate than say 5% or 6%.
Properties in top tier areas of the GTA that are priced properly are still selling. Houses in secondary areas however are sitting much longer and are not getting the prices they may have two years ago. This is hard for people to get their head around. Try and tell a Seller that their house is worth $200K less than it may have been this time last year. Condos are faltering in a big way as well.
We have seen nothing but a run up in Toronto real estate prices over the last decade and a half so it was only a matter of time before things would start to retrench. Remember that all cycles are just that: cyclical. All markets go up and down and ours is no different even though we haven’t seen any significant decreases until now. This fall is going to be very interesting and will be watched by many of us very closely.
If you or someone you know is looking to get into Toronto real estate and would like solid fiscal advice on how best to proceed, please reach out to me at any time. I have been on the financial end of buying smart real estate now for almost 25 years, so I’m sure my perspective may be helpful. You can contact me at paul@plex.ca
– P.A.
When are we coming out of this Income Property Slump?
Toronto Real Estate has seen declining YTD numbers and income property returns have been questionable with the higher borrowing rates over the past two years.
Toronto’s new Sixplex Zoning Rules for 2025
Tolerance for building larger multiplexes increases to help fight the City’s housing battle.
Owner Occupied Income Properties Still the Way to Go
Despite bottom line returns decreasing, living in an income property is a prudent way to make life more affordable.
