Has anyone considered investing in Canada?

T

tippergore

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Has anyone considered investing in Canada?

Property prices have increased by up to 50% in parts of Ontario alone over the past year. Will the downturn in he U.S. economy bring all this to an abrupt end or has Canadian real estate been undervalued since the property crash of the late 80's there?

Any thoughts appreciated.
 
Re: Ooohhh Caaanaadaaa!

I suggest you flick a coin, "heads it will, tails it won't". That's as good an indicator as any property expert can give you - with any certainty.
 
Re: Ooohhh Caaanaadaaa!

But the thing is, it actually has increased by this amount and this is not just sales hype. It is probably not 50% across the board, but on select properties. Still the appreciation has been good in down town Toronto.

[broken link removed]

http://www.thestar.com/Business/article/261432

These are local articals and prices as well, not if bought through Irish or uk agencies. Taxes might be the sticking point, they are high for non-residents, i think a property has to be used as primary personal residence for 1 year, otherwise capital gains of 25% applies.
 
Re: Ooohhh Caaanaadaaa!

tippergore said:
I see there is only room for negativity in this forum.
Click to expand...

Tippergore,

It is not negativity; the Canadian market is just so far away and impossible to control. I generally do not trust management companies; in my experience they tend to be a disappointment. I will only invest in property that I can control in OPI situations or do so through a syndicate. There are loads of other examples of areas around the globe set to take off such as Singapore, New Delhi etc, but as it can not be legitimately controlled people do not consider them.

For your thread, a similar one to AAM in the US or Canada may have more responses. But it is to far away for my liking - Canada is a wonderful place and surely would be a good investment choice. As mentioned before in other threads (finally), location choice in any market is essential and as longs as it washes its face it will be a good choice.
 
Re: Ooohhh Caaanaadaaa!

tippergore said:
I see there is only room for negativity in this forum.
Click to expand...
Perhaps you'd be better off posting elsewhere, then?

The first article you linked to from the property pages of the Toronto Star bases its reporting on a 'survey' carried out by a real estate agent. Do you consider that to be a reliable/unbiased source? Granted, the journalist also reports:
Bank of Canada governor David Dodge told reporters this week in Vancouver that he was concerned about the sustainability of housing prices.

"One worries about the structure of the mortgage market, that we may actually be aiding, facilitating, a rise in house prices that is not warranted."

Meanwhile, a report by housing analyst Will Dunning this month warned that the stronger dollar and rising commodity prices will result in continued slower economic growth in the Toronto area this year, which is likely to have a cooling effect on the housing market into 2008.
Click to expand...
 
Re: Ooohhh Caaanaadaaa!

Canada is a vast area and there is huge variation between the different regions.

Property in Vancover has appreciated nicely over the past few years but property tends to expensive.

Toronta also varies greatly depending upon the locality.

Vast Oil reserves in Alberta (just above Edmonton) have generated huge demand for workers, thus driving housing demand in recent years. The demand for oil and the reserves mean this will continue.

Also the Canadian Dollar is independent of the US Dollar. Personally I'd recommend Alberta.
 
The loonie (Canadian dollar) is at historic highs to the US dollar. The US is Canada's main trading partner (lumber, outsourced manufacturing etc.). With the high exchange rate, pressure will come on multi-nationals to relocate to lower cost areas within NAFTA (e.g. Mexico). Margins will be hit and there will be a tightening of the employment market.

The price of oil is also at a historic high. Oil sands/shale extraction is expensive ($36 to $40 per barrel - http://en.wikipedia.org/wiki/Athabasca_Oil_Sands) so is only justified by a high oil price. If you see oil prices continuing to be high, then Alberta is probably best placed in Canada to profit from continuing rising property prices.
 
yoganmahew said:
The loonie (Canadian dollar) is at historic highs to the US dollar. The US is Canada's main trading partner (lumber, outsourced manufacturing etc.). With the high exchange rate, pressure will come on multi-nationals to relocate to lower cost areas within NAFTA (e.g. Mexico). Margins will be hit and there will be a tightening of the employment market.
Click to expand...

Agree with you Yogi on the basics fundamentals and it being all pretty much top of the tree. Re: Oil, analysts are downgrading for 2008 and mid 2009 to $80 range as a median due to the impending US recession [longterm it will keep climbing]. Finally isn't Alberta Sands extract, havoc for the environment. Although it's a larger reserve the Saudi how does it offset against environmental damage?
 
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