We will be seeing a big crash in the stock markets amidst COVID19. As the uncertainty continues, Canadians will begin to look for a safe harbor to protect their hard earned money. Unlike buying stocks and other forms of investment, investing in real estate is by far the most preferred for average people. Yet surprisingly, real estate investors in Canada still represent less than 5% of home purchasers. If it’s such a good investment why are fewer Canadians taking this route?
What usually happens is, an individual may at first believe that buying real estate is a great investment, but the thought of doing so and the work involved after, might intimidate them because they’re not sure how or what to do. Due to this, most Canadians back away from real estate.
Vancouver Real estate
For those living in Vancouver, or those who have kept a keen eye on this smoking booming Canadian real estate market, it is not surprising to hear that house prices are high there. Given the current trajectory of the market, and the other factors at play within Vancouver and the world right now, the fall-out won’t be as extreme as people are predicting. More details!
During the 2008recession period, Canada experienced a modest drop in real estate prices, with Vancouver experiencing the most pronounced plunge. House prices in Vancouver showed a 14% decline over this period; prices in Toronto dropped only 6%, for comparison. Although Vancouver had the biggest hit, what was interesting was how Vancouver bounced back. Since 2008, prices have climbedby 82%, with the average price of a Vancouver home at $1.3 million.
The good news and what we learned from the 2008 hurdle is that Canadians are better positioned to bounce back from an economic disaster. This market in Canada, might be said as “recession proof”. Even if Vancouver does experience a temporary dip in prices the after-effect isn’t so bad.
Invest in Vancouver
Given the uncertainty surrounding the spread of COVID19, it is challenging to confidently predict any market impacts at the moment. There is however, a strong sense of optimism felt by those involved in British Columbia’s sizzling real estate hub. With such heavy demand for Vancouver property, continued population growth and the history Vancouver holds following 2008 recession, Canadians are fueled with optimism and courage.
Real estate investing doesn’t need to be a risky gamble. If you purchase a property today at the current market value, upgrade it, and or make it suitable for tenant living, it often adds value to your property. In addition, if you have a tenant who is essentially covering all of your expenses and you are planning to hold that property for the long term, then the value of that property in the future at which you can sell, is irrelevant. The market can crashat any time, but if you have tenants that help you pay off your mortgage you will come out profitable, regardless. For more details, visit: https://www.forbes.com/sites/forbesrealestatecouncil/2018/04/03/ten-trends-in-the-canadian-real-estate-market-for-brokers-to-watch/#4b2f1506733a