Real Estate Investment Canada

What do you think, will the housing crash spread to Canada too? Should I begin building, or wait?

Well, so far so good. The U.S. housing market is getting hammered but Canada’s housing boom is still going strong. That’s good for me because I want to begin buying old homes and building mini-townhouse units on them (for a BIG profit, of course). But I have read so much negative news, even from Canadian journalists talking about how its only a matter of time before our booming job market will soon start to see shrinkage, and then our housing market will also tank. So far it looks likes this impossible, Canada is just too strong, but I want to ask other’s opinions first: 1 ) If you were me, would you go out and borrow a few million to sink into a housing project right now, in the hope that I could make a windfall profit in 3 to 4 year’s time from now? 2) Do you think that Canada is immune, and that our housing market is somehow better, and that we will weather this storm pretty good? 3) Where should I borrow the 1-2 million from? A regular bank, or private investors? Or where? ( I only have about $20,000 saved up, so I'm going to have to find some place for 100% financing: My friends tell me that money is easy to find and for the past few years all types of people have been borrowing with no money down, and I should too! )

Public Comments

1. You answered your own question when you stated: "My friends tell me that money is easy to find and for the past few years all types of people have been borrowing with no money down, and I should too!" That is the exact recipe for disaster that caused the "burst" here in the United States.
2. Just make sure you have the right exit strategy. For example, if you plan to make money only on appreciation of value and intend on selling fast for a big profit, I would be cautious since it sounds like the writing is on the wall. But if you can still get financing, and don't mind holding on to the properties for a while (4-5 years), then go for it!!
3. The financial crisis has not peaked. When it does peak, it will hit Canada. It will also stop you from borrowing $1Million. But if you borrow today, you will have to start making payments in 30 days. That is why it is so tough to "time" the market. Get the money and get ready to buy. Canada will get hit hard..