First-time buyers and millennials waiting for the real estate market to cool down might have to wait a bit longer. The word on the street is that the uncertainty caused by Brexit could push more investors to redirect from London to the Canadian shores. Meaning the already heated market is about to get even hotter.
Realtors are also not wasting time in spreading the word about the potential benefits of investing in Toronto and Vancouver. Many are gearing to field calls from potential investors and not surprisingly the expectation is that they will come from China.
Officially now the largest foreign investors in Canadian commercial real estate (spending close to $1.3 billion in the first half of the year), the Chinese have displaced Americans who dominated real estate investments in this particular segment from 2010 to 2015.
With Bank of Canada expected to follow the US trend and keep interest rates low, foreign investors looking to park their money in a relatively safe haven are likely to see Canadian commercial real estate as an attractive option.
While real estate professionals have been open about commercial real estate, few are willing to comment on the residential market. Yet one can expect to see a similar trend here too and the unofficial word is that it could turn up the heat on the inflamed residential real estate market even further. Those looking to cash in are likely to see this as good news while others who have been patiently waiting on the sidelines might find their ownership dreams are unlikely to be realized anytime soon. – CINEWS