Stock Insight

It's still a good time to invest in Canadian real-estate - selectively

Capital appreciation shouldn’t currently be the key consideration, but there are opportunities in income generation if you look carefully

Andrew Willis 12 April, 2019 | 2:00PM

The good news about the Canadian housing market is that it appears stable despite concerns of over-cooling. However, with prices and sales levels starting to come down, where is the value to be found when considering an investment property?

It depends on what kind of buyer you are. And it’s important to know the fundamental constants in the market, the detractors, and then the remaining areas of value. First, it’s worth considering what’s going on with buyers in the market that are looking for a home, the root of demand, when considering purchasing a property as an investor.

There will always be a demand for places to live in familiar areas. What isn’t constant is the willingness – and ability - to pay for them. Growing debt levels, stagnant wages, and tighter mortgage rules, all seem to have conspired to cool the market.

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Andrew Willis

Andrew Willis  Andrew Willis is a content editor for Morningstar.ca.

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