Real estate is an attractive sector to invest capital in and watch it grow. It is considered one of the safest options for people who are looking for investment opportunities that will provide them with value. And, when it comes to real estate investment in Canada, there is plenty of options to choose from. The purchase of rental properties in areas like Vancouver, Montreal, Winnipeg, Toronto, Edmonton, etc., can prove to be quite a profitable investment.
However, given the high demand for homes in Canada and sky-high prices, you need to get clear if real estate investment in Canada is the right decision. Don’t worry! Here, we’ll help you get answers to all your questions so you can prepare for the real estate endeavor in a better way. Let’s get started!
A View Of The Canadian Real Estate Market
According to the Canadian Real Estate Association, the average home price will increase up to $718,000 in 2022. Home sales saw a spike in 2021, and sales are forecast to fall by 12.1% next year. Furthermore, pent-up demand will fuel in 2022; however, you can expect a decrease in real estate prices by the second half of the year.
The real estate market in Canada has shown steady growth for over two decades. When the pandemic was in full swing, low-interest rates for single-family homes were prevalent. This made 2021 the best year for real estate investing in Canada. In 2022 also, real estate investment in Canada will offer long-term capital gains.
Reasons To Invest In Real Estate Canada
In addition to the booming real estate market, below are some more reasons that support the idea of real estate investing in Canada-
Diversify Your Investment For Better Returns
One of the best ways to make sure a net return during a potential drop in the real estate market is diversifying the investments. Investing in Canada lets you invest more by refinancing. Refinancing means replacing the current mortgage with a loan.
Get Tax Advantages
Tax advantages also make a significant reason to invest in real estate abroad. When it comes to real estate investing in Canada, you get the following tax advantages-
- Light taxation of property income.
- Tax flexibility.
- Steady real growth in the real estate market.
- Amortization of purchase price (4%/year).
Cities like Montreal, Edmonton, etc., feature real estate properties with attractive and accessible prices. Depending on the fluctuations in the real estate market, the price/square meter in Canada varies from Euros 2,000 to 3,000. Canada presents a transparent market. The best thing is, Canadian law doesn’t impose any obligations on foreign investors. Thus, you are subject to the same obligations as the Canadian landlords.
Some Tips For Investing In Real Estate In Canada
One of the best things an investor looking to invest in real estate in Canada can do is to contact a professional real estate agent. Top builders in Edmonton can help you invest in properties that will quickly turn into a profit. They have years of experience in the industry and will let you decide if your investment should be a short-term rental, a residence, or a chance to revamp your cash flow.
They can also help you find an investment property that comes with low taxes or low-interest rates. Moreover, they will also help you find the right condo or single-family home of your dreams at the most affordable rate. This saves you a lot of time, as they will show you properties that fall in your budget and that you’ll approve.
To Sum Up
If you are looking to invest in Canada real estate, you should weigh the pros and cons. Of course, you require more money upfront, and there would be homeowner problems. Be mindful of the risks you may encounter and determine if it is the right investment for you. Then, make an educated decision that you won’t regret later.