Factors to consider when going into real estate in Canada

Tuesday Feb 04th, 2020


When you decide to invest in real estate, you have to find out if there really is a good time to dive into this venture. This is where you need to consider looking for the signs to show that there will be a significant growth in this sector in the near future. While these signs are not constant and may keep changing from year to year, you still have to carry out other research to ensure that you are able to maximize your returns on investments.

Population growth

Canada is a country whose population is expected to grow in the coming years. Real estate is dependent on the settlement of people and this is where you will need to analyze population patterns. Go for the areas that are likely to receive a surge in traffic be it seasonally and even off-season. For residential homes, looking for prime locations that have good neighborhoods and accessibility will help you increase your cashflow.

Government policies

The government of Canada has started laying emphasis on matters of national housing. This means that the government is willing to support this sector to achieve affordable and better housing for the people. When the government is in full support of a project, as an investor, you have to take advantage of this opportunity as you may get incentives that will reduce your overhead costs.

Housing prices

Economists suggested that a global recession in the real estate sector would be witnessed in the coming years due to an influx in supply. This means that housing prices will most likely go down. This however should not divert your attention from this investment option. You can still earn a decent return on your investment while still offering competitive rental rates. Go for locations that do not have access to the best housing and invest there. Even though increased supply is being witnessed in this sector, demand will most likely remain constant or reduce insignificantly due to population growth and other factors like urbanization.

Home buying vs renting

Another factor to consider is of the people opt to buy houses other than rent. This will help you strategize on the best way to go so that you never run out of tenants. If people are into buying houses, then venture in making houses that you can sell out. If people are more into renting, then rental residential properties will be the ideal choice. To determine this however, you will have to conduct in-depth market research or hire an expert. 

Final verdict

The real estate sector is a risky one. Especially with the suspicions of a recession in this sector, you will find a lot of people cowing away from investing in this sector. Real estate can however earn you very high returns and help you diversify your portfolio. With the growth in Canada’s population, this sector will continue to grow which is why you will have to consider the above factors when making your investment

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