If you’re considering selling your property in Canada, we can report that 2016 has been much better than expected so far, at least as far as Toronto and Vancouver are concerned. There were fears that the property market in Canada was overpriced, but those fears have since been found to be overblown.
There may be a lot of clamour for properties in Toronto and Vancouver right now. But Western Canada, especially Alberta, isn’t doing so well because of the fall in oil prices. The oil industry is the biggest employer in Western Canada.
The fall in oil prices has meant that oil companies have had to cut costs and let people go. So, this has been a huge setback to the local economy. The housing market in this part of the country has suffered as a consequence.
But there is a flip side to this. The lower oil prices have meant that Canadians have more money to spend than before. They have also been helped by the slashing of interest rates by the Bank of Canada. This has made low interest rate housing loans accessible to one and all.
So, housing is cheap for the first time in years in many parts of Canada and a lot of first-time buyers, especially the young and recent immigrants are taking advantage of it.
What is also clear is that Canada attracts foreign investors in droves. There is a major interest in Canada and a lot of wealthy individuals from emerging nations such as China and India are keen to buy properties here.
Canada has the advantage of being one of the most prosperous nations on the planet. It is a politically stable country and its economy is pretty much capable of weathering all shocks to the system. It is also a very safe country.
The crime rate in Canada is very low and we don’t see the sort of racially motivated hate attacks in Canada as in many parts of the world. So, foreign buyers feel safe in Canada.
They like that Canada is a very diverse country and the people of Canada are generally friendly and accepting of those who come from different cultures. They don’t feel any discrimination of any sort.
That’s why Canada is such a popular country and so many individuals around the world want to relocate to Canada along with their families. For sure, the fact that foreigners are such active buyers in the Canadian property market has pushed up the prices for everyone.
While this has made homeowners happy, as they have seen the value of their properties go up every year, many first-time home buyers are not so enthusiastic about it. They feel that the prices in the Canadian housing market are artificially inflated.
So what can you expect in 2016 in Canada? Well, we are seeing more people, especially Gen Xers, put up their properties for sale and move to larger homes to cater to the needs of their growing families.
We have also been witness to a number of Millennials getting married and buying their first home. As for Baby Boomers, nothing much seems to have changed, except that many are looking to downsize and move to smaller homes as they no longer have their children living with them.
Selling a home in Canada is not much different from selling one in the UK. It’s the same process. You can sell the property through an agent or through a private sale. It usually takes 3 months to sell a property once you decide to put it on the market.
The capital gains tax in Canada is one of the highest in the world – 50%. A lot of Canadians have complained about this and the new government has promised to look into the issue seriously. The high capital gains tax is the only drawback of buying a home in Canada.