Should You Invest?
Property aimed at the tourist market can be a good long-term
investment that also capitalises on short-term rental potential.
Tourism in Canada is growing markedly, and mountain and waterfront
property in particular is becoming more sought-after in terms of
holiday lets and for long-term or retirement homes. Potential
rental markets and resale markets exist in both the local and
overseas sectors, giving a wide pool of opportunity. Holiday
apartments in a complex designed for year-round living or
individual homes in resort areas, especially those offering summer
as well as winter activities and within easy access of amenities
are worth investigating for investment. Investment property in
burgeoning oil towns such as Ft. McMurray offer very solid
investment opportunities thanks to significant undersupply.
- Canada is such a large country with varying regions, ranging
from wealthy cities to rural and often quite deprived communities,
that there can be large differences between areas in terms of
prices and desirability.
- Healthy supply and demand imbalances make for great
opportunities to generate high yields and strong capital
appreciation.
- Rises have been steady rather than flamboyant with gains of
5-10% over the past three years in certain locations.
- Compared to many European countries Canada's property has
traditionally been considered lower priced.
- Property aimed at the tourist market can be a good long-term
investment that also capitalises on short-term rental
potential.
- Potential rental markets and resale markets exist in both the
local and overseas sectors, giving a wide pool of opportunity.
Rental Yields
According to information from globalpropertyguide.com Montreal
offers less expensive purchase opportunities with condominiums
costing on average $4,152 per m², whilst condominiums in Toronto
have an average cost of $5,178 per m². Properties here can create
yields of 6.4% to 6.7%. In Montreal, yields tend to be higher at
6.8% to 7.3%.
Price History
Canada's property market is very mature, though there has been
increasing development in tourist areas, this is still relatively
new. Canada is such a large country with varying regions, ranging
from wealthy cities to rural and often quite deprived communities,
that there can be large differences between areas in terms of
prices and desirability. Compared to many European countries,
Canada's property has traditionally been considered lower priced,
however mid-summer figures in 2007 saw rises of 9.5% and average
property now costs $314,000.
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