CANADIAN PROPERTY DEFIES THE CREDIT CRUNCH
World of Property
With the UK economy floundering and many European property markets experiencing a downturn, many Brits are looking to Canadian property for investment and emigration opportunities.
"In comparison to popular European hotspots, Canada still offers enticing, affordable and less expensive property," says Liam Bailey of David Stanley Redfern. "Current rental yields are hovering around the 7 per cent mark; however, with prices currently on the rise along with its population, Canada is both highly alluring and rewarding for folk who relocate there, just as it is for professional property purchasers who might buy an apartment, flat, villa, lodge or chalet."
After avoiding the problems that have plagued the US property market, Canadian property is set to maintain its rental yields as demand for property outweighs its availability. It is widely expected that 2008 capital growth will be far more favourable than many other developed countries.
"Canada is still a land of opportunity and one which is becoming ever more popular at this time of economic woe in so many other countries," says Ailse MacFarlane, Marketing Director of Landcorp International. "The recent downward spiral of the UK economy is undoubtedly why Canada has stepped up its bid to entice as many as 50,000 new residents; however, with generous salaries, Canadian property up to a third cheaper, offering considerably more square footage, and the price of petrol at under 60p per litre, the benefits of living and investing there are plain to see."
Ailse recommends looking at property in Nova Scotia, which she describes as "an attractive proposition that looks set to capitalise on other countries misfortunes." She continues: "Nova Scotia is often referred to as ‘Canada's Atlantic playground' and is one region that is making its mark. Being just two hours from New York there is no shortage of footfall, especially at a time when the American markets are in freefall."
Landcorp are currently promoting pre-development land in Nova Scotia which is owned and will be developed by Terra Firma Development Corporation. Ailse advises that planning permission should be achieved by 2010 or soon afterwards, and that investors can expect returns of between 100 and 150 per cent. Prices for quarter acre plots start from £8,875, with half acre plots starting from £17,750.
Another area of Canada that is attracting considerable investor attention is Ontario - particularly Greater Toronto. The Toronto Real Estate Board has announced that the Greater Toronto Area housing marketing recorded 9,411 transactions in May, with the average price increasing four per cent from last year.
There are other indications that the Toronto real estate market represents a good Canadian property investment. Employment in the area continues to be strong, and interest rates remain low, meaning that consumers have the financial resources to buy homes and have a variety of choices to manage the carrying costs. Vacancies are also expected to drop to an all-time low in the second quarter of 2008.
David Stanley Redfern has a new property in Toronto designed by world-renowned architect Peter Clewes. The Pier at Queens Quay will consist of a pair of two-storey towers containing a number of penthouse suites. Facilities will include a number of swimming pools with cabanas and panoramic views of the lake.
