The Canadian Real Estate Association recently announced that national home sales pretty much stayed the same in April. Compared to last year’s April activities, sales were 3.1% lower this year. However, the average sale price rose by 1.3% over the same time led by gains in Calgary, and parts of Ontario. The national average price for homes is now $380,588. Overall CREA maintains that the Canadian housing market remains firmly in balanced territory.
I believe real estate can be a great investment. It’s not often we hear about someone losing money consistently, long term by investing in (not flipping) homes in North America. Even in the US, despite the housing collapse in 2007/2008 average prices are now back to their mid 2003 levels. Not to mention the potential to generate rental income from them. One way to invest in real estate without a lot of money is through REITs. For people who want to buy property directly but perhaps think their city is too expensive then another option is to shop cross country or even cross border. Many investors in BC and ON for example are buying homes in AB and SK because the rental rate relative to purchase price makes more for sense for cash flow reasons.
According to a BMO study, more than 500,000 Canadians now own property in Florida. Wow, half a million. That’s like 1 in every 70 Canadians, almost hard to believe. Go Canada! We saw an investment opportunity in 2010 and 2011 and bought when prices were low. So far it seems to be paying off for us. Over the last couple of years (since April 2011) single family homes in Florida has climbed 12%. While Canadians accounted for almost 40% of all real estate purchases in Florida in 2010, we are now facing stiff competition from Asian buyers and domestic investment companies that have been scooping up hundreds of Florida’s remaining distressed properties in the last year or two.
Random Useless Fact: Butterflies taste with their feet. Taste receptors on a butterfly’s feet help it locate dissolved sugars like fermenting fruit and other food sources.