Where to invest in Real Estate

[canuck78]

Like i said you can add IMO if you prefer...

Lot of us see the indications. Also about being specific i meant about different housing segments reacting to this situation differently.

We can keep exchanging words as real buyers are going ahead and benefiting from the situation. July sales proves my point all across canada (even in vancouver) both price/sales wise it was highest across all segments. I beleive this market crash talk was going on since april and i do not think buyers in July were all plain stupid.

There was an increase in sales partially due to pent up demand since there we’re many restrictions/lockdowns and many could not show their home except for virtually. There was very little inventory when it came to homes since many sellers are no longer interested.

People need to exam their own situation and their tolerance for risk. I object to all
l these declarations that increases in prices and that real estate is a guaranteed good investment.

 

[steaky]

International students and foreign workers are captured in the immigration statistics already stated. The majority of international students do not purchase properties and rent. WP holders also rarely purchase within the first few years of being in Canada until they either have the funds and/or know they will be able to remain in Canada longterm.

Were foreigners also captured in the immigration statistics already stated? Many international students cannot purchase properties and rent on their own, either they don't have enough money or not reaching legal age to sign documents. Their parents were often the people behind. They may have visited or never visited Canada. Also, don't under estimate WP holders. They might be doing well in their home country (have more than enough funds to buy multimillion homes in Canada) but only accept the Canadian job in relation to the WP as a route for immigration to Canada.

 

[canuck78]

Were foreigners also captured in the immigration statistics already stated? Many international students cannot purchase properties and rent on their own, either they don't have enough money or not reaching legal age to sign documents. Their parents were often the people behind. They may have visited or never visited Canada. Also, don't under estimate WP holders. They might be doing well in their home country (have more than enough funds to buy multimillion homes in Canada) but only accept the Canadian job in relation to the WP as a route for immigration to Canada.

FN aren’t part of immigration stats and FN still make up a relatively small percentage of purchases across Canada. Many countries have also been cracking down on money leaving the country and due to economic uncertainty and concern about Canada’s e oniony many investor may not want to invest at the moment. If anything FN tend to purchase in the condo market which is one of the areas that is likely to suffer most. A very small fraction of international students have parents t
who can purchase a home for them to live in. There are some WP holders, not a huge percentage, who may have the funds to purchase real estate right after moving to Canada but may not especially during the first few years. I indicated that as well. Some WP holders may have no intention of living in Canada longterm, many have no credit history in Canada making it difficult to secure a competitive mortgage rate, many will want to get a feel for a city and their employer to determine where they want to purchase and some will want to have their PR application in process or will want want to have secured PR before making such a huge investment. I did point out that many WP holder may buy after 1-2 years and not on arrival when they know their future is secure in Canada and they have their PR or in the process of receiving it.

There have already been effects on the real estate and real estate investment office. Many real estate investor had to transition from AirBnB to longterm rentals or wait out the situation with very little bookings. The prices of rentals are going down in many areas from Toronto and Vancouver to many of the smaller communities with colleges or universities.

 

[Impatient Dankaroo]

Depends if Trudeau gets elected again imo. Doesn't know what he's doing economically but he's really good at politics so he's probably get elected again

 

[steaky]

FN aren’t part of immigration stats and FN still make up a relatively small percentage of purchases across Canada. Many countries have also been cracking down on money leaving the country and due to economic uncertainty and concern about Canada’s e oniony many investor may not want to invest at the moment. If anything FN tend to purchase in the condo market which is one of the areas that is likely to suffer most. A very small fraction of international students have parents t
who can purchase a home for them to live in. There are some WP holders, not a huge percentage, who may have the funds to purchase real estate right after moving to Canada but may not especially during the first few years. I indicated that as well. Some WP holders may have no intention of living in Canada longterm, many have no credit history in Canada making it difficult to secure a competitive mortgage rate, many will want to get a feel for a city and their employer to determine where they want to purchase and some will want to have their PR application in process or will want want to have secured PR before making such a huge investment. I did point out that many WP holder may buy after 1-2 years and not on arrival when they know their future is secure in Canada and they have their PR or in the process of receiving it.

There have already been effects on the real estate and real estate investment office. Many real estate investor had to transition from AirBnB to longterm rentals or wait out the situation with very little bookings. The prices of rentals are going down in many areas from Toronto and Vancouver to many of the smaller communities with colleges or universities.

But seriously international students and WP holders are FN (foreign nationals) and here you said they aren't part of immigration stats? What are you talking about now and previously?

Rental prices going down in Vancouver? No, this is not case. You better take a look at padmapper.com!

 

[Lazymon82]

FN aren’t part of immigration stats and FN still make up a relatively small percentage of purchases across Canada. Many countries have also been cracking down on money leaving the country and due to economic uncertainty and concern about Canada’s e oniony many investor may not want to invest at the moment. If anything FN tend to purchase in the condo market which is one of the areas that is likely to suffer most. A very small fraction of international students have parents t
who can purchase a home for them to live in. There are some WP holders, not a huge percentage, who may have the funds to purchase real estate right after moving to Canada but may not especially during the first few years. I indicated that as well. Some WP holders may have no intention of living in Canada longterm, many have no credit history in Canada making it difficult to secure a competitive mortgage rate, many will want to get a feel for a city and their employer to determine where they want to purchase and some will want to have their PR application in process or will want want to have secured PR before making such a huge investment. I did point out that many WP holder may buy after 1-2 years and not on arrival when they know their future is secure in Canada and they have their PR or in the process of receiving it.

There have already been effects on the real estate and real estate investment office. Many real estate investor had to transition from AirBnB to longterm rentals or wait out the situation with very little bookings. The prices of rentals are going down in many areas from Toronto and Vancouver to many of the smaller communities with colleges or universities.

Vancouver's $5 Billion real estate market was because of foriegn nationals' laundered money and that was just part of it. Big percentage of foriegn nationals do things legally aswell.

Not sure about numbers but many canadians are returning for good from Hong kong and may be few from hong kong are immigrating permanently to canada. Trump's re-election could push not only americans but a whole bunch of other nationals to canada as canada being most easy for immigration among affluent nations. Which only makes most of the 1 million immigrants in the next 3 years who are economy stable look at real estate investment and mostly in metro cities.

Friends i know who never had an idea of owing a home are thinkng about buying now because of low interest rates which will be for a prolonged period of atleast 3 years. Whether real estate investment is best for returns or not is debatable but safest tangible investment for sure (if you know where to invest).

 

[canuck78]

But seriously international students and WP holders are FN (foreign nationals) and here you said they aren't part of immigration stats? What are you talking about now and previously?

Rental prices going down in Vancouver? No, this is not case. You better take a look at padmapper.com!

My discussion with @Lazymon82 was about immigration of PRs not visiting students or those in Canada temporarily on WP.

There actually has been downward pressure in many areas including Vancouver. It has only started in the past few months due to lack of immigration and the lack of international students. The downward pressure will likely Abe in areas with a lot of AirBnBs, where students may have lived (smaller and larger communities) and in urban centres as people move out to more suburban or even rural areas. Before criticizing please at least do some research.

https://www.vancouverisawesome.com/vancouver-news/august-average-rent-down-vancouver-up-burnaby-bc-2635558

 

[canuck78]

Vancouver's $5 Billion real estate market was because of foriegn nationals' laundered money and that was just part of it. Big percentage of foriegn nationals do things legally aswell.

Not sure about numbers but many canadians are returning for good from Hong kong and may be few from hong kong are immigrating permanently to canada. Trump's re-election could push not only americans but a whole bunch of other nationals to canada as canada being most easy for immigration among affluent nations. Which only makes most of the 1 million immigrants in the next 3 years who are economy stable look at real estate investment and mostly in metro cities.

Friends i know who never had an idea of owing a home are thinkng about buying now because of low interest rates which will be for a prolonged period of atleast 3 years. Whether real estate investment is best for returns or not is debatable but safest tangible investment for sure (if you know where to invest).

Agree that Vancouver prices especially have skyrocketed over decades due to money laundering. It is a shame that Canada didn’t prioritize it’s own citizens. Canada already accepts around 300k PR peryear. Not all the Canadians in HK are going to return to Canada and they may already own real estate in Canada. Due to covid immigration levels will likely be at record lows this year so it will be hard to catch up to 1 million in 3years. Also depends if we have an election. If unemployment rates remain high there will also be pressure to decrease immigration numbers. Vancouver doesn’t represent the real estate picture of the whole country. There is a lot of uncertainly in global markets. If you can hold your home for 10+ years then there is less of a risk but increases of 30-60% is not in anyone‘s projections.

 

[Lazymon82]

Agree that Vancouver prices especially have skyrocketed over decades due to money laundering. It is a shame that Canada didn’t prioritize it’s own citizens. Canada already accepts around 300k PR peryear. Not all the Canadians in HK are going to return to Canada and they may already own real estate in Canada. Due to covid immigration levels will likely be at record lows this year so it will be hard to catch up to 1 million in 3years. Also depends if we have an election. If unemployment rates remain high there will also be pressure to decrease immigration numbers. Vancouver doesn’t represent the real estate picture of the whole country. There is a lot of uncertainly in global markets. If you can hold your home for 10+ years then there is less of a risk but increases of 30-60% is not in anyone‘s projections.

The undertone in both our words is basically you consider covid-19 situation a wheel stopping event and i absolutely do not.

It was a Infact a good ground reality shock to the whole population in general as to invest where and consider it safe. And most are coming to the conclusion that it could be real estate and particularly the residential segment.

The 30 to 60 precent prediction is just that. Single family will see that price growth with the imminent work from home conditions in the coming years. Get away cottages and farm houses are also on the rise in demand just for this reason. Where as condos in the metros may be occupied by millennials and new immigrants to keep the demand but not as much as the other residential segments. Automobiles prices are going sky rocket aswell. Again everything i say is IMO

 

[steaky]

My discussion with @Lazymon82 was about immigration of PRs not visiting students or those in Canada temporarily on WP.

There actually has been downward pressure in many areas including Vancouver. It has only started in the past few months due to lack of immigration and the lack of international students. The downward pressure will likely Abe in areas with a lot of AirBnBs, where students may have lived (smaller and larger communities) and in urban centres as people move out to more suburban or even rural areas. Before criticizing please at least do some research.

https://www.vancouverisawesome.com/vancouver-news/august-average-rent-down-vancouver-up-burnaby-bc-2635558

But you were the poster who said visiting students and WP holders were captured in the immigration stats. Also, there are interprovincial migrations and returning Canadians. So before defending, please do more research or onsite visits. As I am living in Vancouver, I don't need research in the market. I've seen prices are stable and there's a upward pressure. As I said before, you should look at padmapper.com.

 

[steaky]

Just to add about your comments about Airbnbs. Do you not know many immigrants and returnees use them for quarantine for at least 15 days? So, there is market for Airbnb despite lack of international students.

 

[canuck78]

Just to add about your comments about Airbnbs. Do you not know many immigrants and returnees use them for quarantine for at least 15 days? So, there is market for Airbnb despite lack of international students.

Without normal tourism AirBnB use is a fraction of what it used to be. Many have been converted to longterm rentals.

 

[canuck78]

But you were the poster who said visiting students and WP holders were captured in the immigration stats. Also, there are interprovincial migrations and returning Canadians. So before defending, please do more research or onsite visits. As I am living in Vancouver, I don't need research in the market. I've seen prices are stable and there's a upward pressure. As I said before, you should look at padmapper.com.

Padmapper shows listed prices not final prices and not all incentives. Just having rentals not being rented right away in Vancouver would be considered a change. There is certainly a change in the rental market. There aren’t huge decreases and it was only confirmed relatively recently that international students would not be returning. Landlords even entertaining negotiating a rental decrease was unheard of last year. There is downward pressure in the rental market especially in the urban areas because many people are working from home, not as many students moving both domestic and international students moving to attend school and less immigration this year due to covid. There is also downward pressure on rents in smaller communities where students college/university account for a large percentage of the renters.

https://www.ctvnews.ca/business/pandemic-drives-down-rent-boosts-incentives-in-toronto-and-vancouver-1.5084337

 

[steaky]

Without normal tourism AirBnB use is a fraction of what it used to be. Many have been converted to longterm rentals.

They were converted to either longterm or more than 30 days because as a result some strata in response to covid 19.

 

[steaky]

Padmapper shows listed prices not final prices and not all incentives. Just having rentals not being rented right away in Vancouver would be considered a change. There is certainly a change in the rental market. There aren’t huge decreases and it was only confirmed relatively recently that international students would not be returning. Landlords even entertaining negotiating a rental decrease was unheard of last year. There is downward pressure in the rental market especially in the urban areas because many people are working from home, not as many students moving both domestic and international students moving to attend school and less immigration this year due to covid. There is also downward pressure on rents in smaller communities where students college/university account for a large percentage of the renters.

https://www.ctvnews.ca/business/pandemic-drives-down-rent-boosts-incentives-in-toronto-and-vancouver-1.5084337

Certainly rentals (even before the pandemic) were not being rented right away but the listing time in padmapper.com was usually not long (less than a month). I agree there's a change in the rental market, but in hot markets, there are no downward pressure on rents where there are still increasing returnees and interprovincial migrants.