Canada is a country of immigrants, the population growth rate is guaranteed, and immigrants bring a certain amount of foreign wealth, which ensures the overall upward trend of real estate.
House prices in Canada are on average 40 per cent higher than those of their southern neighbors.
But real estate is a non-tradable asset, and this does not affect valuation.
People in the country, as well as in metropolitan areas such as Toronto, Vancouver, Ottawa, etc., may have the same understanding of the housing market.
But that's not the case in the rest of the region.
The retention rate of the property is uncertain.
For example, the city where fencer Luan Jujie is located has seen a 300% increase in house prices within five years. However, after the Beijing Olympics, despite the twists and turns, there was almost no visible increase in its housing prices.
The large cities of Prairie Province also fluctuate little.
After Montreal entered a rapid growth in house prices, there was no expected surge since then, but a slight decline. Investing in real estate without considering rental income is basically not as good as the income of blue chips.
Real estate taxes in Canada are mainly divided into two parts, municipal fees and education surcharges. Cities roughly charge a percentage of property valuations each year, the lowest 1%, and rural areas have only electricity supply services, which is lower.
The outstanding performance of overpayment of taxes is that when it snows heavily, it is more timely to shovel snow and sprinkle salt in wealthy areas. Schools are better, but this is mainly due to student sources.
Investing in real estate, the problem is how to value.
The basis of property value, with bank valuations, is generally low. The second is the insurance valuation, which is generally slightly higher. Municipal land tax valuations are generally based on the average valuation for three consecutive years. All three are likely to have come from the same survey, but show different results.
In the past, this data could be consulted directly, but now the window is closed. However, it can also be found through third-party charges, which is generally linked to advertising.
The opposite of valuation is the market price.
Market prices are ever-changing, but in the same community, if the land tax is similar and listed at the same time, it is possible to compare the investment value is different. This difference can be as bad as 30%.
The key to the profitability of investing in real estate lies in the purchase price, and it is worthwhile to properly investigate and compare.
In addition to the land tax, the classification of property is also important.
Centrally located properties may be labeled as country holiday homes, urban properties may be agricultural land, and other categories that are completely unclear.
Even if you want to sub-rent a detached house, but find that your property is limited to one family.
Or 90% of your small real estate is residential, and the other 10% is agricultural or commercial.
The reason is that in the past, homeowners may have done various businesses at home. Business is fine, agricultural is really difficult to understand.
Commercial land taxes in urban areas are about four times that of residence, so commercial real estate is sometimes very difficult to sell.
Finally, talking about the problem of speculation, Mr. Qingqi of the United States (the author of the rich father and poor father), who has lectured in Canada, spends 500 knives / bit for lunch.
After the region was patronized, but mainly with Canada's ultra-low interest rates, into the crazy house rush stage, the real estate agent bluntly suggested that competitors increase the price by at least 20%, and those with insufficient ability suggested that the quotation reached the high limit of the loan amount, preferably without preconditions (referring to loan guarantee and home inspection exemption).
Popular is generally three, close to tenant concentration rental housing, convenient middle-class settlement areas, noble areas of the broken houses.
This state of affairs is unsustainable and has caused market prices in some popular areas to exceed 250% of land tax valuations and reach the limits of local purchasing power.
Unconditional housing and impulsive competition are also easy to regret.
But the key is the change in interest rates.