Published on 24 October 2005 at 12:05 pm
Filed under: North America:- Canada Property Guides » Canada Real Estate Investment
The Canadian real estate market is not considered to be an emerging market; rather it is a traditional and well established sector where investor returns are generally cyclical and are a direct reflection of the underlying economic growth trends countrywide.
The overall attraction of the property sector in Canada from a property investor’s perspective is based upon the solidity of an investment made and on the emergence or development in popularity of a given geographic region.
Residential and commercial real estate in Canada offers a property investor with a large international portfolio a risk adjusted long term diversification opportunity with property assets in Canada traditionally returning value increases at least in line with inflation over the long term and with strong short term gains achievable depending on the position of the property market cycle.
Alternatively a real estate investor could work the residential property market in Canada to beat trends, get ahead of the market and buy into the fastest growing geographic regions during a market upswing before that particular region peaks. The investor could then cash in by flipping assets before the given geographic market hit a period of stagnation or depreciation. During the latest positive market movements property investors working in this way have benefited from annual gains in excess of 20% in certain regions.
In general Canada has two added bonuses for real estate investors that are worth considering: -
Firstly the country attracts high numbers of wealthy expatriates who either seek residence in Canada for retirement or to take up key employment positions under the Canadian Immigration Department‘s skilled worker programmes. These immigrants seek properties for rent and resale and bring a constant flow of ‘new’ money into the Canadian property market which adds to the sustainability of the Canadian real estate sector and actually creates an investment focus in the cities and areas most popular with this group of people.
Secondly Canada has emerging markets within its borders. Canada has gone from political strength to economic strength and is generally regarded worldwide as a safe and neutral country. This has created growth in many business sectors and led to the physical expansion of many cities in Canada which have spawned developing residential and commercial real estate sectors of their own. A property investor could look to target his investment on any one of Canada’s developing cities and either buy into buy to let residential or commercial property units which could include industrial or office space or retail units as well. Alternatively Canada has an already well established but gradually expanding tourist sector that is creeping further inland and further north opening up opportunities to target second home markets and tourist accommodation markets in more towns in Canada now than ever before.
The limit for a property investor in Canada’s real estate market is therefore only his imagination and will also depend a little on what a real estate investor is seeking. Long term growth, short term gains and sustainable income can all be supported by Canada’s property sector if an investor can time and target his investments correctly.
North America:- Canada Property Reports
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