Why should you invest in Real Estate and Canada now.
OK, we all now that US sub-prime made the financial institute all over the world to melt down. The Canadian Banks were among those who had impacted by this melt down the less.
The economic slow-down, made our CA$ to lose some ground to US$. As our currency is heavily supported with pour vast natural resources. But this is not going to last so long, we are going to experience a reduction of Canadian $ for a couple of more months before it starts its move toward the parity. So, at this rate or less, the afford-ability of Canadian Dollar, and stability of Housing and Money market in Canada, will help investor to position themselves in a right place for the coming Economic Expansion in a year or two.
The stock market is too liquid, and the expectation and feelings of the market in any second of the day will change the direction of Stock market.
The spectators in Real Estate market are there for a longer period and they know that they have to keep it for a longer time than day-traders in Stock Market.
So, by having a stable market and stable financial market, and the Interest Rates at its lowest, it is time to Buy-and-Hold in Real Estate.
We have a 250,000 new immigrant every year which most of them come with lots of money and about 40% of them will end-up in Greater Toronto Area.
If an investor from abroad, brings in money and exchange it, he receives a 20% discount right now, the market is almost 10%-15% down, and even at its pick it was much lower than any other major cities in the world, specially in Toronto. Then we have a Buyer market, which allows for another 5%-15% negotiation slack.
In 2-3 years, the prices will back on track of 6-10% increase annually, the Canadian Dollar will take back the lost ground to US$. So, why not invest in the 2nd largest country in the world?