The Property Investment Market in Canada
Past, Present & Future
The Canadian real estate market presents an attractive investment market due to the stability of the location. The growth experienced over the past decade has been steady and controlled, ensuring the market fluctuations do not reach excessive levels.
Canada has not experienced speculative buying in recent years like many other world markets. While this has stopped many investors from making fast gains on real estate, it has assisted the stability of the market in difficult economical moments.
The growth of the market in the 5 year period until 2007 was at approximately 10%, beginning to go down in 2008 slightly in relation to the fall in the Canadian economy. The county’s economy has been affected by the drop in gas and oil prices, along with cut backs on exports. While the market is going down, it is expected to recover by the end of 2009, with no major or long term effect on the real estate market.
As the Canadian property market has avoided overpricing and had straight regulations in place for financing, the market is in a unique position to avoid falling or crashing at detrimental levels.
The immediate future for the market predicts a swift recovery to its pre-downturn levels, followed by steady growth. The beneficial exchange rates for European investors combined with realistic pricing, will assist with maintaining Canada as a preferred long term and re-location market for Europeans.
Buy-to-let opportunities are expected to continue strong growth as the demand increases across the country. The expansion of industries creating employment for highly skilled workers create long term rental potential. Coupled with the low prices of the market at present, the rental market is predicted to offer investors an ideal moment for obtaining maximum long term growth and yield returns.
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