- lower incomes and less job security with the majority of new jobs being in self-employment
- lending institutions playing it safe by choosing to sit on cash rather than lending it out
- new mortgage rules that require from prospective borrowers a 20% down payment
- shorter amortization period
this is forcing middle class buyers out of the market.
Let's take a look at some of the properties currently up for sale their advantages and risk exposure
Also to consider : the changing attitudes of young people
the next generation is putting off marriage until well into their 30's; they're also moving to the city choosing to rent rather than buy, and even forgoing the option to take over the family home when their parents decide it's too big for them.
This, in my opinion, has created an opportunity for smart investors - people who are able to pay for something with cash !
Buying with cash is impossible ? think again - there are a number of properties in Canada that can be had for under $20,000; so if you can buy a car you can invest in real estate - yes, even in Canada :)
Quebec Real Estate Market A Wise Buy
With problems in the oil (Alberta) and manufacturing (Ontario) sectors investors are shifting their focus to Canada's other major market : Quebec - where the population keeps growing (thanks to a thriving student population driven by what is arguably Canada best all around university McGill) real estate remains cheap - yes rental income is lower than than it is in Toronto and even Ottawa but high demand means very low vacancy rates.
Quebec City is proving to be a great option for investors
median income in Quebec City is growing at a healthy pace - since 2009 it has surpassed Halifax, Hamilton, Kitchener, Kingston, has kept pace with Sudbury and is now tied with Victoria.
things to focus on when buying property
- cheap land
- the more land on the property the better
- discount on assessment value
- sale price
- the longer the property is listed for the better the price gets (20-30% discounted properties, offers)
- rental units offer great rate of return on property investment
- be aware of mortgage rules concerning zoning laws
- American buyers : know the risks and rewards associated with buying foreclosures