Canada Real Estate
In Canada, real estate is as varied as in the U.S., and opportunities
are always present in some part of the country, or in some type
of real estate. Rhiannon Williamson discusses some of the current
possibilities in this article on Canadian real estate.
Ongoing Opportunity in Canada’s Real Estate Sector
By Rhiannon Williamson - 2006
The Canadian real estate market is a market for all seasons
because while the country’s property market is definitely
cyclical, it's always possible to profit from real estate in
Canada if a property investor times and targets his investments
correctly.
In Canada, depending on the position of the real estate market
cycle and the area of the country a buyer is interested in, an
investor can either buy into long term growth, short term gains
or sustainable income.
When the property market is riding at all time highs as it
is in Canada in the main cities currently, an investor is unlikely
to be able to make short term profits in a market saturated with
supply and struggling for demand… however, in such a market
where first time buyers are unable to afford the first rung on
the real estate ladder there are buy to let opportunities for
the investor able to afford the outlay to purchase in demand
rental accommodation.
Those who can purchase apartments and town houses in the most
popular rental districts in Canada can buy into a sustainable
rental income and enjoy capital appreciation on their real estate
asset over the longer term. When there is a slow down in demand
for property to buy there is often an increase in demand for
accommodation to rent, this means that rental rates being charged
rise and an investor can achieve an impressive income at such
a stage in the cycle of the property market.
When the real estate market cycle in Canada begins to shift
after a period of slow down, stagnation or negative correction
that effectively makes property prices more affordable in real
terms, the demand for real estate to buy increases and supplies
diminish. It is at times like this that an investor can target
the fastest moving sectors for the fastest moving gains and make
impressive short term gains or substantial longer term improvements.
Another reason that makes the Canadian real estate market
a market for all seasons is the fact that there is a constant
supply of ‘new money’ in the property market because
of the popularity of Canada with expatriates. Annually Canada
welcomes thousands of new residents and these people bring fresh
money and demand to the real estate market which means that there
is always an inward flow of foreign sourcedinvestment to boost
the property market.
Finally, the fundamental attraction of Canada as a country
for real estate investors is based on the fact that any investment
made into the Canadian real estate sector is an investment made
into a solid, tried and tested well established market. A market
where there is and will remain constant local demand for real
estate to rent or buy, and where there is a constant annual inward
flow of foreign sourced income to boost the entire real estate
sector.
Rhiannon Williamson writes about real estate investment.
To read more about real estate investment in Canada click here.
(Auhtor please contact us for link.)
2012 Update:
Housing in Canada - A recent report from Realty Times:
Canada's rate of homeownership is expected to increase
and the future for condominiums looks bright according to an
updated analysis of future Canadian housing demand. By 2036,
there will be more one-person households in Canada than any other
category, due to the aging of the baby boomer generation. But
the country is counting on immigration to be the main driver
of household growth in the next 20 years, says a recent report
from Canada Mortgage and Housing Corp. (CMHC).
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