OFFPLAN NEWS

(05.07.2007 )
Real estate in Canada Canadian residential real estate mirrors SA

If you invested in a property rentals Canada unit in Toronto, Canada, you can expect an income return of about 4% in the first year, assuming the investment is not financed. After taking into account maintenance and inflation running at between 2 and 3% in Canada, the after-tax real income yield is about 0%.

Capital growth can be expected over the long term at about 3% p.a. Thus the long-term real total return would be about 3-4% — which is about the international rule of thumb.

This is the assessment of the Rode team of the Canadian house market.

The problem is that these averages do not reflect the whole picture. Certain cities, such as Vancouver and Alberta, for instance, have shown much higher growth in real estate for different reasons – in Alberta it is because of the oil boom and in Vancouver it is due to the lack of expansion space since they won the rights to the 2010 winter Olympics.

Another variable is that certain areas in a city could suddenly become trendy and desirable, resulting in a much larger increase than the average gain on residential properties in that area. In the long run you will always gain, but this gain might not be as much as you could have received from alternative investments — albeit at the cost of higher risk.

Maintenance is a big problem when it comes to investing in rental property in Toronto. If you get a good tenant, then all is fine, but so many places are trashed by tenants, and then the properties require much higher than average repairs, sometimes resulting in negative returns.
 

News by Country

»(05.07.2007 ) Property in Canada Canada Property
The Canadian real estate market is quite an established and traditional market rather then an emerging market.... » find out more

»(05.07.2007 ) Property in Canada Canada for Real Estate Investors
Real estate Canada investors attracted to Canada have a wide range of property types, investment areas and budgetary options available to them with extremes of property prices achievable country wide from highly pricey in the main towns of Toron... » find out more

»(05.07.2007 ) Property Canada Property in Canada increasingly being sold privately by owner
Selling property in Canada privately or For Sale by Owner (FSBO) is becoming increasingly popular in Canada.... » find out more

»(05.07.2007 ) Canada property Canada Real Estate Investment
The Canadian real estate market is not considered to be an emerging market; rather it is a traditional and well established sector where investor returns are generally cyclical and are a direct reflection of the underlying economic growth trends... » find out more

»(05.07.2007 ) Canadian properties Canadian Market: Solid as a rock
Over the last few years, while investors have been gunning for potential big returns in the emerging markets, rentals property in Canada has been quietly going about its business of providing stead annual gains.... » find out more

»(05.07.2007 ) Canadian property Canada: Bob-Lo Island Marina Resort wins Grand SAM Award
Bob-Lo Island, A Marina Resort Community developed by Amico Properties for sale Canada, has reached the pinnacle of achievement in the Canadian residential construction industry by winning the Grand SAM Award at the Canadian Home Builders' Assoc... » find out more

»(05.07.2007 ) Canadian real estate Real Estate in Canada: Record Growth
As reported by Amberlamb last month in our article ‘It’s Calgary versus Toronto for Property Canada Investors’, house prices in Calgary in Canada have been surging ahead and pushing up the national average. ... » find out more

»(05.07.2007 ) Canada real estate Canada property continues to look healthy
The Canadian property market is currently in high demand, particularly in the west of the country, according to a major real estate company. ... » find out more

»(05.07.2007 ) Real estate in Canada Canadian residential real estate mirrors SA
If you invested in a property rentals Canada unit in Toronto, Canada, you can expect an income return of about 4% in the first year, assuming the investment is not financed. ... » find out more

»(05.07.2007 ) Real estate Canada Canadian Real Estate Purchase Process
As one might expect from a country as sophisticated and well regulated as Canada the Canada real estate purchase process is straightforward and well documented and both the vendor and purchaser’s rights are legally protected.... » find out more