Real Estate Investment Canada

Is it now a good time to invest in real estate?

Could you tell me the outstanding difference of investment in real estate in US and Canada now?

Public Comments

1. Not yet, it is going lower before it picks back up! i really do not have a good idea on how the real estate market is doing in Canada. But the US real estate market is not going to start rising for another 6-8 months at best. It could take a full year! It is good to get your feet in, but don't count on it to make a living! The ones that do survive the recession will end up on top. It would be wise to learn the business right now and prepare to jump in as soon as it begins to pick up. However, do not risk your financial stability by depending on it!
2. yes if you know what you are doing and have the right team of players and the capital.
3. Only if you money to spare that you won't need for a while, prices will go back up but who knows when. In the meantime you have all that maintenance to deal with.
4. Kind of, but can be better soon enough. I'd wait longer.
5. No. There is a housing glut right now and real estate is dropping like a rock. Wait for the market to bottom out.
6. Is it now a good time to invest in real estate? The simple answer is No! For several reasons Interest Rates The prime rate dropped to the 4% range to create the surge in housing prices. We are now at the 8 % range. Wait for a better rate. I would suggest between 4% and 6%. As home prices continue to plummet the fed will attempt to stop/slow a recession by lowering interest rates. Demand vs Supply There is a glut of homes on the market and demand is falling. However there are many more foreclosures to come. sub prime loans make up 25% of the mortgage market, about 20% have gone into foreclosure, I think another 15% will go into foreclosure. Also remember after a foreclosure it takes about 7 years to be able to get another mortgage, so those buyers are now out of the market until 2014. But the fall in demand is two sided, for now not only do you have foreclosures, but that 25% of the market demand that was fueled by those qualifying for sub prime loans is disappearing into thin air. Less people qualify for a mortgage, less people buy a home, more homes left on the market, prices fall, more people sell to cut loses, and we go on a downward spiral. As of September 7 2007 we still have twice as many homes on the market for sale as we did in 2002, and less demand! Overall suggestion, keep a close eye on the supply of homes and the interest rate. Wait for the prices and interest rate to come down much further, you can save tens of thousands of dollars if you do. I don’t see a big recovery, the bubble of 2001 - 2004 was created by low interest rates and sub prime lending. I don’t think sub prime lending will make a comeback soo neither will that bubble. Home prices will have to be affordable at the regular 30 yr or 15 year mortgage with 10 - 25% down and a low interest rate before prices will start to rise again. When to buy then? I don’t know. But I would suggest you watch for a prime rate between 4% and 6% perhaps in the next year or three. (Depending on the severity of the upcoming recession) This is not a "correction" or hiccup, there is too much supply and falling demand. Basic economics tells us that prices have a long way to fall before demand picks up again. In fact common sense would dictate that prices would need to fall to the point they were several years ago before sub prime mortgages became all the rage. Could you tell me the outstanding difference of investment in real estate in US and Canada now? I am actually Canadian so I can tell you we didn’t have the sub prime issue, we have a more conservative program that lets you put down 5 - 10% if that’s all you can afford, but that program is fairly expensive (mortgage insurance 1-3% of the loan) . The vast majority of Canadians put down 20 - 25% when buying their homes and in my experience we buy our homes later in life when we are more stable in our careers. That all said Canadians tend to also be more frugal then our American counterparts and hence have better control of our finances, foreclosures are very uncommon. Immigration into Canada is also a lot easier then the USA so demand is fairly steady for homes and rentals, which continues to drive prices higher. In general Canadians are will most likely not see the fallout of housing prices that is happening here. I had a friend in Canada that just bought a house and my mom just put her home up for sale. My friend paid a lot and my mom is looking at a good profit. Prices have been steadily increasing in Canada without any major fluctuations pretty much as long as I can remember. (At least the last 15 years)