With the current economic climate as it is, investing in real estate is not as financially secure as it once was. Countries around the globe are seeing a downturn in the number of properties being bought and, as a result, construction companies are building fewer properties. However, while this rule of thumb may hold true for most locations across the globe, there has never been a better time to invest in real estate in Canada.
Canada is home to one of the most lucrative real estate markets in the world. With a steady economy and low mortgage rates, the property ladder in the North American territory is extremely accessible, great news for young families and great news for real estate investors in the country too.
In the last year, mortgage rates in Canada dropped to an all-time low in the country, with a five year fixed mortgage available with as low as 2.88 per cent interest. Moreover, these low rates are coming from reputable lenders such as True North Mortgage and the Bank of Montreal.
Meanwhile the rate of mortgage repayment is actually going up, as property owners increase the monthly amount they put towards paying off their mortgage. In 2012, over 40% over households made regular, additional payments on top their minimum mortgage repayment.
However, the current trend cannot go on forever, with some economists already warning that if the real estate market continues to grow as it is, then it could become unsustainable. To safeguard against this, it is likely that, over the course of the next few years, house prices are likely to rise in an attempt to control the property market. Already, lenders are being warned about offering excessively low mortgage rates and lending regulations are being tightened all the time.
All this means that the best time to invest, is now, at a time when it is easy to find a property and make an easy return on it quickly. At the moment, the best places to invest are Ontario, which is one of the fastest growing cities in the country, along with British Colombia and Alberta. In these multicultural metropolises, there are plenty of jobs to sustain the growing communities, as well as a good mix of both residential areas and tourist hotspots.
Of course, even when investing in a lucrative market like in Canada, it is still vital to take all the regular precautions as you would when making a less secure investment. However, whichever area of real estate investment you’re looking to move into, whether it’s leasing, redevelopment or simply inhabiting, you should be able to find a wide range of suitable properties on the market in Canada.