Key reasons to Invest in Canada Real Estate!

The real estate investors make money through Rental Income, Appreciation, Profits generated by business activities. Canadian market is one of the attractive places to make the investments and earn more money. Investing in Real Estate is the best option for those who need increase their net worth and for people who are thinking to invest in Canadian properties have an advantage to increase their money by buying the lands.  

A study says that ‘Canadian Investors and foreign buyers spent $34 billion on buying land and entry level acquisition in 2018’. Canada is house to many investors and places like Vancouver and Toronto are famous for housing markets. Many countries consider Canada to be the safe heaven for investing inn real estate. 

SOME OF THE REASONS TO INVEST IN CANADA ARE:

1. Advantageous Taxation- Amortization of the purchase price of 4% per year; attractive tax credit systems; exemption from social security contributions; and Canada is known for steady increase in real estate market. “It is observed that even during the pandemic time real estate market has grown 5.5% every year in Montreal”. This is why it is the best place to build the real estate portfolio.

2. Diversify the Investments- Diversification is one the best way to entrepreneurial success. Leverage is the best ways of funding as it provide the investors to have an rampant returns on the investments. Canada provides the best leveraging system that will allow people to increase their investment even through refinancing.

3. Attractive and Accessible prices- Canada is the beneficial place to many investors. One of the best advantage of foreign investors investing in Canadian properties is that they are treated at par with the Canadian landlords and doesn’t have any other obligations or complicated laws to follow.

4. A growing real estate market- Canada is booming economy with very less unemployment rate. You have diverse options to make investments in Canada, as the present interest rate in Canada is very alluring to people looking for mortgage that is easier to make payments. Canadians feel that real estate investments are the safe way to station your capital and watch its growth.

5. Mortgage on income fetching properties- This is one of the reasons for people to park their capital in the Canadian properties. As people can purchase properties for as low as 20-35%, and your tenants will pay the mortgage and you can write off the interest on your loan.

The Greater Toronto Area has performed really well in the real estate market due to immigrants. According to a survey approximately 150,000 new immigrants settle in Ontario every year. Thus the housing demand keeps increasing in GTA. This has lead to good performance of residential property market in Canada.

Canadian real estate market during Covid pandemic

Even during the pandemic, when people are unwilling to sell the property, but still it has changed the view of real estate investment properties. And the real estate market is still thriving in this pandemic when everything else is suffering. The pandemic has created the need for housing in Canada, as the companies have been shifted to work from home. The benefit of buying investment properties at this point of time is that of gaining rental income from students.

Toronto are having a hard time keeping up. Investors should definitely consider buying a property in areas that are often underrepresented as their prices will be lower and the rate of growth will be higher. Buying in these areas can help boost the economy further and can help these smaller communities reach their mandated growth goals.