With so many naysayers preaching “the end is near” in Canadian real estate, it can be hard to see past the noise. But there is good reason to try. If you have any experience in real estate, you know that it’s a cyclical being. It is based on supply and demand, and because of that, it fluctuates just as demand does.
In some of the larger Canadian markets, over-inflation is a plague that is forcing the downside of that cycle to become a reality. However, just as there is sure to be a downside, there is also an upward swing that inevitably comes right after, which always happens once prices become reasonable again. Unfortunately, when it’s big markets such as Vancouver and Toronto, a dip in sales or prices looks bad on the country as a whole, especially when you have “experts” that are averaging the market across the entire country.
Rule #1: Don’t average real estate—Real estate is local. Smart investors know it’s what’s happening in the local market that matters and not nationwide.
Rule #2: Do your homework—Look at the local market that peaks your interest. Consider its GDP, unemployment rate, infrastructure, and population growth. If these are favorable, it tells you a lot about the ROI you can expect.
Rule #3: Consider West Canada—Areas throughout west Canada are really “testing” the theory of a real estate bubble, only in that they’re proving it wrong. When you look at areas like Calgary and other parts of the Alberta market, you’ll see growth, a strong market, increasing immigration, vanishing vacancy rates, and many other factors that real estate investors beg for in an investment opportunity.
The key to investing in any market, in any country, is smart research. I’m sure that if you do the same with West Canada you’ll find something worth considering.