Cielo Condos. Two transactions in the real estate market become investments. Investors account for 1/5 of all home purchases in the Canadian real estate market. Experts point out that it is impossible to quantify the impact of investors on house prices, while some citizens think that the cost of investing in real estate is getting higher and higher.Please Visit: Cielo Condos to Get Your VVIP Registration Today!
Since the start of the new crown epidemic, the number of home purchases by investors has rebounded to 20.1 per cent of all home purchases, with Toronto and Hamilton accounting for a slightly higher share of 22.7 per cent, according to data released in the Canadian bank’s financial system assessment. This is lower than the end of the last housing boom, but higher than before the epidemic.
According to a report by the Canadian Real Estate Association (CREA), the national average house price is 38% higher than a year ago, and real estate investors have been accused of pushing up prices. However, housing experts and economists are unable to quantify the impact of investors on pricing, although such a large number of investor purchases are bound to have an impact.
However, the Bank of Canada data is incomplete in the study of investor-driven market trading volume. In a review of the financial system in May, they revealed that the definition of an investor is a borrower who obtains a mortgage to buy a property while maintaining another mortgage. All-cash transactions are not included, and the data can only be traced back to 2015.
Laleh Samarbakhsh, an assistant professor in the department of finance at Ryerson University University’s School of Management, warns interested parties that while this type of investment seems attractive, especially for young people, the risks cannot be ignored. Property values can rise or fall, as is the case with sole proprietorship. Real estate has never been an easy investment vehicle to cash out. If you are eager to sell, you have to accept a lower price. From a macro point of view, this investment model has attracted more buyers to join the market and will further push up property prices. investors should not make hasty decisions for the sake of following the trend or for fear of “losing”.