Did you know that 1 in 5 homeowners in Canada are foreigners? Real Estate is a solid investment for anyone hoping to see long term returns as well as live and work in Canada.
Emerging trends in real estate for 2020 show that good investments lie within the “bed and sheds” sectors of the market. This includes warehousing, mid-priced apartments, transit-oriented development and senior housing. Areas such as Toronto and Vancouver continue to lead in terms of investment and development in Canadian real estate markets, however, for foreigners, fantastic real estate prospects include Ottawa and Halifax due to its steady economy and new developments in co-living or communal apartment as well as in the industrial sectors.
Investing in real estate should be treated as a business and investors should focus on positive cash flow rather than the purchase price and potential sale price. A large lumpsum may detract potential investors however compared to investments such as stocks and equities, which requires a 100% investment, individuals can use leverage or in other words, put down 20% of the purchase price and own 100% of the asset.
2020 is estimated to see a return to 2.1 percent growth compared to the mere 0.5 percent increase seen in 2019, making it the ideal time to invest in real estate before prices return to their normal growth percentage in the new year.
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What’s the Best Way to Invest in Real Estate in Canada?
1. Research Provinces
Selecting the best place to make an investment can be tough. It is important to look at factors such as market development, economy and of course affordability will always play a deciding factor.
As mentioned before, investing in real estate should be treated as a business and focus should be placed on positive cash flow. Although it may not be easy to purchase property in higher-priced markets such as Toronto and Vancouver, strategies such as making building improvements or putting down a larger down payment can lead to increased equity.
The top provinces and territories with the highest rate of immigrant homeownership are:
|Top Provinces for Home Ownership Among Immigrants|
|Province/Territory||Percentage of Immigrant Homeowners|
|2. Atlantic Canada||44%|
It is important to note that different provinces have different rules regarding mortgages and taxes for immigrants so before to read up on provincial real estate policies before jumping in head first
2. Choose Your Investment Option
Research shows that “bed and sheds” will be solid investments in 2020. “Beds” refers to mid-priced apartments, co-living and traditional rental housing and condos.
”Sheds” refers to warehouses which came up tops in development and investment opportunities.
Other great investments include transit-oriented developments such as the Réseau express métropolitain project in Montreal which is valued at C$5 billion or Metrolinx in Ontario, as well as senior housing which is currently in demand due to the high retirement rate which is a result of Canada's ageing population.
What Are My Immigration Options?
1. Having Canadian Citizenship
The easiest way to purchase property in Canada is to be a Canadian citizen. The most popular ways to achieve this is to receive an invitation to apply for permanent residence in Canada. There are over 70 different visa options available to those wanting to live and work in Canada but the most popular ways include:
- The Express Entry system
- The Provincial Nominee Program
- Family Sponsorship
2. Start a Business
Another option is to apply via the Star-Up Visa Program which allows potential investors to immigrate to Canada by starting a business.
How We Can Help You
Navigating the Canadian immigration system can be tedious, with a copious amount of forms and documents to complete and strict submission dates, we wouldn’t blame you if you felt unsure about getting started on your application. But that's what we’re here for. At Canadian Visa, we take the stress and hassle out of planning to relocate abroad. Our accredited RCICs (Regulated Canadian Immigration Consultants) are ready to evaluate your eligibility, review all documentation and submit all documentation on your behalf. Using an RCIC not only gives you the best possible chance of receiving an ITA but will make the entire process simple and stress-free. We handle the paperwork while you choose your dream job in Canada. It's just that simple.