As the COVID-19 pandemic drags on, it continues to have an enormous impact on the Canadian housing market with prices skyrocketing across the country.
This has largely been driven by demand from homeowners for more space as they continue to work remotely from home. As a result, this has created a sellers’ market is just about every major city across the country.
While this may seem like seem like a bad time to invest in new property, there are plenty of ways to make the most out of the current housing market for new and seasoned real estate investors.
For starters, the historically low interest rates offered by the banks make it incredibly easy to secure financing. With access to cheap money and the fact that home prices are still holding their value, now is the perfect time to invest in real estate and leverage this opportunity.
On top of this, if you are reading the news you’ll know that in cities like Toronto and Vancouver there are more and more condos sitting empty as people look for bigger homes in the suburbs. With a growing inventory, condo prices are steadily decreasing in value, so if you’re looking for a deal and you’re in it for the long term, you’ll likely make a healthy return on your investment when the world returns to normal and equity prices rebound.
Speaking of great deals, right now is also a great opportunity to consider buying a vacation property, since many people are selling them to use the money to buy a larger home or purchase a vacation property closer to home. While it might still be several more months before travel restrictions are loosened, many travel agents expect to see a boom in holiday bookings when it is once again safe to do so.
The sky rocketing housing prices seen in Vancouver and the Toronto region also mean that many first-time home buyers won’t be able to get into the market. This means that many people will be dependent on renting a home or apartment for the foreseeable future which is great news if you are real estate investor who is interested in buying a home and turning it into a rental property.
Not only will this generate monthly cash flow to help pay the mortgage, it will also allow the property to appreciate in value over a longer period of time.
For real estate investors still looking for a good deal but can’t afford to invest in property in Toronto or Vancouver, there are still plenty of good deals in the prairies including in Calgary, Edmonton, Saskatoon, Regina and Winnipeg.
In fact, according to REMAX, these cities are anticipated to see average residential prices increased by two or three per next year, which is more in line with what an average real estate investor would expect to see year-over-year making it a more predictable and safe investment.
Whatever you decide to do, the pandemic has certainly changed the housing market, but that doesn’t mean you can’t take advantage of it. With historically low interest rates, steady housing prices and a shift in consumer preferences for larger homes in the suburbs, there has never been a better time than now to take advantage of the homes that may be less desirable today but will be in high demand tomorrow.
Reach out to us with any residential real estate investment questions or sign up for our newsletter to learn more about real estate investing opportunities in Durham.