With the US, China, European, and Canadian economies in flux, investors are in a quandary about whether Canadian real estate is a solid investment. Given market volatility, risk is on everyone’s mind. When it’s all said and done, hard assets are likely where everyone will go in 2013. And there’s nothing better with more upside than real estate.
Investments in China real estate are still a promising picture, although Chinese investors themselves are still eager to buy in Canada, particularly Vancouver. The Canadian economy and land scarcity in Vancouver are still the best hedge for many foreign investors. That should keep the price of Vancouver property propped up despite the recent fall. The Canadian government has taken drastic measures to suppress the real estate market in Canada, but with the Canadian economy faltering, particularly in Ontario and Quebec, they’ll come under increasing pressure to stimulate the economy again and keep interest rates low. Imports of foreign goods is strong causing a rising trade imbalance and national deficits. This is about as bad as it can get for manufacturing economies such as BC, Ontario and Quebec.
Investing in REITs the Only Option?
You may be thinking of REITs, or Gold and even oil stocks as better investments, yet if the global economies get rolling again, gold is unlikely to keep its value and China REITS and Canadian REITs might not perform as well as they have. Oil is full of riks given the instability in the Middle East.
IF you’re thinking of buying REITs who have had a good record up till late, weigh them against buying a condo or other type of investment property. You have little control or input into a REITs performance. In contrast, buying a rental property gives you maximum control, and the renter will be paying your mortgage off plus more. Even with some REITs paying 25% ROI, that still doesn’t compare to a good rental property in a high demand area. Limited availability and rising rental prices puts the odds in favour of purchasing rental properties.
The key to investing wisely in finding a property in an up and coming area that has proof of high demand. Certain communities in Vancouver are on the incline. Richmond and Surrey have done well of late and downtown Vancouver is almost always a key region for real estate investment. What types of services will be in continuous demand in future? Education and Tourism come out as two likely industries. The demand for Western education by Asians is very strong. And they have money to spend.
Investigate Vancouver real estate investment opportunities further. Learn more about the potential risks and return on your investment. This may be the right choice for you. Need some rental property investment tips? China visitors will be happy to know that the Chinese real estate weekly magazine was just launched and that a China Canada investment agreement has been signed by our government. Contact Joyce for more info about buying Vancouver rental properties.