Look Northward for Your Next Real Estate Investment

Though the real estate market in the United States is favorable for investors, it might be a good idea to look to our neighbors in the north for your next real estate investment…that’s right—Canada.
Housing market experts in Canada predict that national house prices will continue drop—another 10 percent during the course of 2009. The biggest drop should occur in Western Canada which is seeing a slowdown from their ten year long housing boom.
In Canada, real estate prices have fallen close to 20 percent nationally and in some cities, housing prices have dropped nearly 40 percent.
According to an article in Yahoo News Canada, “The Bank of Canada warned recently that, in a worse-case scenario, mortgage and consumer debt defaults could rise “significantly” if the global financial crisis deteriorates. It said the number of “vulnerable households” – the three per cent with a debt-to-income ratio above 40 per cent – could double by the end of next year.”
This is good news for investors of real estate in Canada and the United States.
More good news can be found in a Bank of Canada study that shows that mortgage default rates (foreclosures) would rise about 2.25 percent along with a 23 percent drop in housing prices throughout the country.
Canada has avoided a lot of the risky lending practices that have spelled trouble for the United States housing market. Only four percent of the mortgages sold in Canada have been subprime compared to a 40 percent subprime market in the United States.
Though housing prices are dropping in Canada and the real estate boom is slowing down, many Canadian banks are becoming more cautious in lending to new buyers, so if you’re a United States real estate investor, it would help if you can show a strong portfolio of homes and a good credit rating when you’re applying for a mortgage in Canada.
2009 looks to be a good year for real estate investors especially those who are willing to look to Canada for their next real estate purchase.

One thought on “Look Northward for Your Next Real Estate Investment

  1. alexander

    Hey ! I live up here in western canada! I’m only 18 but I’m a very smart guy, and I’ve been dying to see if your “blueprint” will work up here or for Canadian’s. I recently saw your last commercial while you were driving in the car. It gave me the courage to come and do some research. I hope the real dean will respond. I live up in Surrey, B.C. , where I have literally seen about 5000 houses pop up in the last few years. Any advice or at least some words. ?


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