Investing in Canada’s Real Estate Market

Investing in Canada’s Real Estate Market

Investing in Canada’s real estate market can be a windfall if done right. Housing investments have shown great results over the long-term, and are one of the most practical choices for an investor. However, let’s look at the full picture below.

Reasons why Canadian Real Estate is a safe haven to invest

Long-Term Growth

First, despite Toronto’s bubble burst of the last year, Canadian real estate prices continue to grow. All in all, the Canadian market has proven remarkably strong. Even in 2008, when the American market fell, the Canadian market was able to rebound quickly. Of course, this was because the federal government implemented the Economic Action Plan, which provided stimulus, encouraged investing and led the economy to better circumstances.

Growing immigration

Second, Canada is one of the many places immigrants seek in hopes of creating better living conditions for themselves. Close to 300,000 immigrants came to Canada in 2017. Nearly one third of those people landed in Ontario. Because of this surge, there is an ample need for the development of new homes in the GTA. (https://www.statista.com/statistics/443063/number-of-immigrants-in-canada/)

Growing job supply

Third, let’s not forget that top companies have also looked to Canada’s market, marking it as a growth sector. In recent years, tech giants Amazon and Google both showed interest in opening headquarters here. Already in cities like Vancouver and Ottawa, signs point to continuing growth in the country. And there’s no signs that this interest will slow down, with properties being scooped up in major city areas.

But Wait, There’s More…

Strong, reliable banking system governed by Bank of Canada

It goes without saying that the Canadian banking system, run by the Bank of Canada, was one of the main reasons the Canadian economy emerged from the 2008 recession unscathed. Unlike in the US, Canada’s banks are strongly regulated and have controls in place to prevent lending from getting out of control. Because of this oversight our investments and funds are protected from chaotic shifts in the market.

Low interest rates

Over the past 10 years, Canadian interest rates have been at all-time lows. Starting with a sharp fall in 2008, these low rates gave Canadians purchasing power and boosted economic conditions quickly after the recession. Naturally, this led to a strong real estate market and many chances for investing. Now while rates have since climbed, they remain extremely low by annual comparison and still allow buyers to borrow money with ease.

And Last…

Safe and stable country

Canada’s political climate tends to be more stable than other countries’. Even if it does change from time to time, these patterns are cyclical. Government regulations prevent any strong swings to the market, yet allow investors to participate in the investment process. For people like you and I, this means stable, long-term growth without much risk. It doesn’t get much better than that, does it?

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Donna Bulika is an award-winning Broker with over 8 years of experience in Real Estate sales and in Real Estate management. Her work experience in Property Management field, her personal investments and experience being a landlord provided her with a solid foundation for representing her clients and offering a total package of expertise.