The fundamentals of real estate in Canada
The Basics of Real Estate in Canada
The real estate market in Canada is one of the most interesting industries in the world. Read on to find out everything you need to know about Canadian real estate.
For homeowners and people searching for a new house, the big question is always whether the real estate market in Canada will see a decline or rise in the future.
According to reports and analysis, the prices are flattening out in most of the Canadian market. Certain areas of the country are seeing a sharp decline in prices of real estate as well as sales. Home sales in the country are expected to decline during the current year due to lack of affordability and strict mortgage rules. Other areas, however, continue to see a rise in the prices of real estate even though this may not be as drastic as seen previously.
There is a lot of variation seen in the prices of real estate in Canada. Ten of the most expensive houses in Canada are in the British Columbia region. Home affordability has also always been a problem in Canada. The standard for a normal shelter cost to income ratio, which is the percentage of a household’s income which is spent on rent, is 30%. This value for Canada goes as high as 48.7% for a two-storey house.
Statistics from 2015 show that for each dollar of disposable income of an average household in Canada, there was around $1.6 in debt. Considering the real estate market in Canada and the sudden shifts it tends to take, it is always a good idea to save up as much as you can.
Mortgage payments should also be taken more seriously. It is crucial to make all payments related to mortgage on time to ensure that there aren’t any debts since these can have a very bad impact on your credit scores and deteriorate your chances of landing a mortgage in the future.
To learn more about real estate in Canada, contact Nav Sidhu.