Real estate is an investment that can vary dramatically across the country, and even within the same city. One area of the country can be experiencing a boom, while another is experiencing a bust. The same applies the provincial level, regional level, city level, and even within neighourhoods. It truly is a ‘local’ investment, with each property having its own unique characteristics that affect its overall price.
For this reason, I recommend investors use statistics as an overall guide, but then focus on:
- Becoming familiar with whatever market you are in (or want to invest in)
- Learning that market inside and out (go to open houses, talk to realtors and city planners)
- Finding deals in that area (get a great realtor on your team, call private sellers, analyze the deal with conservative numbers)
While it can be a good idea at times to go outside of where you live to invest (e.g. if you live in Vancouver), don’t get caught up with chasing the latest hot area to invest in, just because a new forecast comes out from CREA or RBC. In the long run, much of the profits from real estate come from your tenants paying off your property for you, and from slow market appreciation and inflation increasing its value over time.
-Spirepoint Real Estate