There is no doubt that Canada has long been a top destination for investors. With its beautiful landscape and high standard of living, it’s easy to see why so many people are drawn here.
But should you invest in real estate? You might be thinking that it’s too big an investment if the national market is unstable or complicated. But did you know that with property prices still on the rise, buying now could actually pay off in the end?
Here’s why investing in real estate in Canada could make sense for you:
Real estate in Canada has been shown to be a good investment
Attractive interest rates and high demand have made real estate a prime vehicle for Canadian investment. The real estate market in Canada is a booming industry. And we aim to educate and inform our clients on the best wealth-building strategies to capitalize on the opportunity.
Take a look at these quick reasons why real estate is a good investment:
- Real estate prices have been steadily increasing in the last few years as more and more people flock to Canada for work, retirement, and education.
- Real estate is an excellent way to diversify your portfolio, even with a small investment. You can buy a condo or house in the city and rent it out for income or convert it to an Airbnb
- Real estate is a great way to live in Canada without having to worry about paying rent!
What are the risks of investing in real estate in Canada?
The biggest risk is that you will lose money if the property’s value decreases. You can avoid this risk by only investing in a property that you believe will increase in value over time.
Often, the BG Wealth Group team works with key decision-makers and city officials to ensure the properties we invest in are projected to grow, not decline. That type of recon is very important, which is why it makes sense to work with a team that is very plugged into the jurisdictions you are looking to invest in.
Real estate has a comparatively low downside with risks that are manageable. You can always sell the property if you need to get some money out of it.
The Canadian economy is an ideal environment for real estate investment at this time.
What are the differences between investing in Canada and the United States?
The biggest difference between investing in Canada and the United States is that real estate values are subject to different factors.
Investing in real estate can be a good investment if you take the time to research the market and find a good property in the right area. For example, in general, the population in the United States is denser than it is in Canada. In Northern provinces of Canada, the population is very sparse and it can be more difficult to apply real estate investment strategies. That’s why we tend to favor investments in communities where the economy is growing.
Generally, the real estate market is not as volatile in Canada. Canadians tend to have fewer foreclosures, this may be due partly because they tend to be more fiscally responsible, or because Canadian banks are more conservative with their mortgage approval process.
Investing in Canadian real estate is not for everyone
The first step to investing in Canadian real estate is to find a good property. You will need to ensure you have enough money for the down payment and closing costs.
It’s important to have a clear idea beforehand of how you will benefit economically from your real estate investment. Believe it or not, some people “wing it” and can find themselves in unpleasant situations. Oftentimes, our clients will come to us after experiencing such a let-down and we work with them to re-align their strategies for greater gain.
What are the tax implications of investing in real estate in Canada?
Real estate is a great investment because it can be used for both personal and business purposes. You can rent out rooms or even an entire property and have a steady stream of income.
Real estate can also be used as collateral for loans, making it a great investment vehicle to use in times of financial uncertainty.
Make sure your property investment is accounted for correctly. Check with a tax professional to make sure. We work with tax professionals in Canada and the U.S. to ensure investors from both sides are getting the information they need to account for their investments.
Great things about real estate investing: It has no shortage of options
You can invest in single-family homes, condominiums, commercial buildings, and more.
You don’t have to be a millionaire to get started. If you want to buy a house or condo, you can get a mortgage and start building equity right away.
Real estate is tangible. You can see it, feel it and walk through it. It’s also easy to understand because real estate is local.
As a long-term investment, it’s not going anywhere. You can buy real estate and hold on to it for decades.
Real estate is considered comparatively more stable as investments go. As far as market exposure, real estate is more resilient and is a physical asset within which investors are protected by certain laws. We hear far fewer stories of people losing their investment cash when real estate is concerned.
Get Started In Canadian Real Estate Investing
Real estate is a tangible investment that offers the opportunity for long-term returns. It’s a local investment where you can see your work and walk through it. As an investment, real estate is considered widely to be comparatively more stable than other forms of investment.
If you would like to discuss your plan for real estate investment with a BG Wealth Group Associate, schedule a complimentary virtual wealth-building consultation.
