Investing in real estate in Canada is not the easiest endeavour unless you are a seasoned investor experienced with Canadian real estate market.
Even then, one of the most common mistakes of real estate investors and professionals alike is basing their choices on national reports about the position of the national real estate market. Nation averages with regards to sales, prices, and changes make little sense when considering real estate decisions in Canada. Instead, trends in a city or town are a much more effective method of determining the value of real estate property.Canada is a very large country with its provinces separated by vast areas of land. As such, trends in Vancouver real estate market are not comparable to trends in Halifax, and real estate investors in Canada need to bear in mind the economic differences between cities when purchasing investment properties. For example, the average house price in Calgary in 2011 is up 0.1% from the same period in 2010; whereas, the average house price in Montreal grew by more than 7% compared to 2010. As one can observe, investment opportunities across cities are not nearly equal.Indeed, effective investors in today's Canadian real estate market are more likely to obtain information about properties and sales in specific regions. In addition to understanding market trends, investors should also carefully consider other key economic factors. GDP growth, job growth, and population growth all have a significant impact on the real estate market in a given region. Subsequently, investors can see that Vancouver continues to benefit from strong growth in the real estate market. Perhaps due to the influx of investment for the Olympics, coupled with strong growth in population, Vancouver real estate market weathered the 2008 economic storm quite well. The question is then: does this make Vancouver an ideal investment place?Prices are obviously a major factor. Vancouver and Toronto are generally regarded as the most expensive real estate markets in Canada, but also the markets that have benefited from the most consistent growth. Meanwhile, smaller markets like Windsor, Winnipeg, and Saskatoon provide excellent opportunities for affordable investment, but these markets remain less attractive because of less robust economic growth.Furthermore, relying on past trends to predict the future of a particular Canadian real estate segment can prove to be a dangerous endeavour. While market changes provide some valuable information, it is more benefit to forecast the economic outlook of a particular region. After all, job growth and increased GDP means citizens have more money to spend. This excess capital translates to better real estate investment opportunities. So what have we learned about the investing in Canadian real estate? First and foremost, there is no common denominator for investing across Canada. Real estate markets differ drastically in various cities, and investors need to do their research based on the region. Secondly, future success cannot be determined by past trends. Instead, investors should study current economic factors to predict the future success of Canadian real estate markets.