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Before Investing In The Canadian Real Estate

July 12th, 2012 3:26 am

The Canada real estate market presents a wide and untapped opportunity to the prospective investor both for the short terms as well as the long term. The market is still not saturated and is growing at a healthy rate which is in sharp contrast to the US market.

This has been fuelled by the performing economy and a presence of a sizeable immigrant population that is actively saving and investing to build up their real estate portfolios.

If you are planning to invest in Canada real estate keep reading this article and you can finf out some of the factors that you need to understand before investing in the Canadian real estate markets:

The rising of average incomes:
This is one of the factors that you need to take into account while searching for strong real estate markets. It is a good idea to opt for places where the average gross income is increasing faster. This means that the property prices will also follow the same pattern.

In fact, it is not the average income that accounts; you need to consider the rate of increase. You can invest in a real estate market even if the average income of that place is lower than the provincial average, provided the rate of the average income is increasing faster than the provincial average.

The flow of booming markets:
You can conveniently invest in a property market, if its neighborhoods had recently experienced a strong growth in their property values. Such increase will also have a strong impact on the surrounding areas.

Though at a slower rate, these surrounding areas will also heat up eventually. This is a phenomenon that has been noticed repeatedly in surrounding areas of a booming market as well as in the neighborhoods of redeveloping and improving communities. If you follow the pattern minutely you can easily identify such real estate markets, which are about to experience such booms.

Home Owners Pleased With Canadian Real Estate Market

June 26th, 2012 10:42 am

The Canadian real estate sector has experienced decline over the last couple of years mostly because of the recession. In 2008, Canadian citizens lost 415,000 jobs and in 2009, 91,000 of those jobs were replaced. Canada’s unemployment worries contributed to the decline in the housing sector. By 2010, the job opportunities are expected to increase by 0.9 percent and double that percentage in 2011.

The unemployment rate is expected to increase to 8.4 percent range in 2010. The population increase affects the housing market demand. Families that are increasing may need more space as they expand. Young, increasing families are often good candidates in real estate. The birth rate has been slightly lower than usual. This translates into lower real estate demand.

Recent reports show that there could be some signs of the sector recovering in 2010 and 2011. Experts expect that the real estate sector could possibly grow to almost 190,000 units in 2010. This would be an extraordinary improvement from almost 150,000 units in 2009. Over 200,000 units are expected for the 2011 sector. Experts expect that the Western Canadian sector is expected to recover before other Canadian provinces.

In 2010, the real estate prices are expected to decrease by the end of the year. At the end of 2009, the average home price in Canada was $342,231. Experts expect the average home price to be about $339,126 by the fourth quarter of 2010. The decrease in price may encourage sector activity. house buyers can expect the average home price to grow to $348,391 in 2011.

Toronto is the least affordable location to purchase a home in Canada. In 2010, the average home price is expected to rise to almost $430,000. A home in Toronto is expected to grow to almost $440,000 in 2011. The most affordable location to purchase a home is in London, Canada. The average price for a new home is expected to be almost $220,000 in 2010. Housing prices should only grow to $221,000 in 2011. A few other areas that have experienced rapid growth include the Vaughan real estate sector as well as Markham were Markham homes for sale simply are not able to keep up with the demand from buyers.

A one year posted mortgage can be obtained by home owners with mortgage rates ranging from 3.7 to 4.3 percent. Mortgages that are longer could have mortgage rates between 4.4 and 6.0 percent. Real estate investors can expect a 1 percent or more grow for 2011.

In 2009, current home sales rose and are expected to continue to rise in 2010. Because there were a limited number of current homes for sale, the demand for current homes fuelled new home sales. Canada has also experienced a large immigration rate over the last number of years. The condominium and rental sector has mostly filled the vacancies. The vacancy rates are expected to stay stable over the coming years.

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