Why buy in Canada?
Strong Economic Performance
Canada has been one of the better performing countries during the global economic crisis. According to the World Economic Forum’s Global Competitiveness Report 2015-2016, Canada has the soundest financial system in the world and ranks third for trustworthiness and confidence. It’s the 13th most competitive country, up from 15th position in the previous rankings due to its reduced budget deficit.
Canada is the world’s tenth largest economy (IMF figures) and as a member of the G7, a key player on the world stage. Through diligent policies and regulation, Canada has become one of the top performers in the developed world with one of the lowest debt to GDP ratios. The OECD predicts GDP growth of 2% in 2016 and 2.3% in 2017. Equally, for the 8th consecutive year, the World Economic Forum declared Canada’s banking system to be the world’s healthiest.
Canada is the Best Place to Invest in G7
Canada is the third best destination for doing business in the G7, according to the World Bank and is ranked 4th in the world for foreign direct investment confidence, according to the AT Kearney Foreign Direct Investment Confidence Index 2015 (published September 2015). In the same index, Canada stands in second place overall in terms of investors’ positive outlook for the economy. AT Kearney refers to Canada’s new trade agreements and lowest marginal effective tax rate as the two principal reasons behind investor confidence in the country.
In terms of investment ratings, both Standard & Poor’s (S&P) and Fitch give Canada a triple AAA rating with a stable outlook. S&P cites the country’s strong public institutions, prosperous and resilient economy, and fiscal and monetary flexibility. The credit ratings agency also refers to Canada’s track record in dealing with fiscal issues and forecasts “long-term fiscal sustainability”.
Economic stability has become key to Canada‘s success and is demonstrative in attracting investors from all over the world to its shores.
Investment in Canada is considered a safe haven for investors’ hard-earned money and continues to represent a solid foundation for future growth and prosperity.
Canada Voted as the Best Place to Live by Expats
In the HSBC Expat Explorer survey for 2015, Canada was voted the 11th best place to live in the world overall. The country scored highly for entrepreneurship (6th position), career progression (7th) and expat experience (6th). According to the survey, “with a strong economy, magnificent scenery and an excellent social security system, Canada is a dream expat destination”.
High Demand for New Property Developments in Nova Scotia, Canada
Demand for new build property within commuting distance to Halifax is high with few new property developments emerging onto the market. Forest Lakes Country Club is ideally located within a 30 minute drive of the Halifax metro and the International Airport.
Multinational companies are expanding and creating new job opportunities within the region. This in turn is fuelling demand for quality residential property in the region. Multinational companies currently operating in Nova Scotia include Admiral Insurance, ADP, IBM Xerox, Lockheed Martin, March Captive Solutions, Meg-3, Mitsubishi, Pratt and Whitney and UFJ Fund Services. The region is home to the world’s fastest-growing hedge fund administration centre and to 40% of Canada’s military assets. (Source: www.novascotiabusiness.com).
In addition Nova Scotia’s Irving Shipbuilding was awarded a CAD$25 billion shipbuilding contract from the federal government, through to 2030. This is the biggest ship building contract since the Second World War and is estimated to generate 15,000 jobs each year with many of the highly skilled, well paid workforce looking for quality housing within commuting distance of Halifax.
Canadians Choose Residential Property for Long-term Investment
According to the Royal LePage 2015 Recreational Property Report, Canadians are extremely bullish about buying vacation property. “The dream of recreational property is very much alive and well across the country,” said Phil Soper, president of Royal LePage. The market is dominated by buyers in their 40s and 50s with families looking to “re-create the idyllic weekends and summer of their youth” and the Report expects these buyers to use their recreational properties as eventual full-time residences once their children leave home.
The recreational property market has benefitted from the fall in oil prices and the lower Canadian dollar. Royal LePage notes that Canadians are increasingly looking at property in their own country rather than the US while the strong US dollar has increased American buying power and interest in Canada. “We are seeing money making its way north, particularly in Atlantic Canada,” says the 2015 Recreational Property Report. In Nova Scotia, sales of recreational property grew during 2015 and Royal LePage expected the sector to achieve all-time highs the number of property listings by summer 2015.
Rising House Prices in Canada
Property prices have been on a brisk upward trajectory since 2008. The average house price in Canada hit CAN$500,688 in December 2015, an all-time record and a 6.5% jump from a year earlier.
Royal LePage predicts a strong housing market during 2016 based on continued low interest rates and the knock-on effect of the recovery of the economy in the US. Improved economic conditions there have led to an increase in Canadians exports resulting in more jobs and higher consumer confidence in Canada. Royal LePage forecasts a nationwide price increase of 4.1% in 2016. Prices in Halifax rose by 2.2% in 2015 and are expected to go up by 2.5% during 2016.
The RE/MAX Canada 2016 Housing Market Outlook reports that for 91% of Canadians, homeownership is part of the Canadian dream. The Outlook found that in Halifax, properties in the C$250,000 to C$300,000 price bracket experienced the most activity in 2015 with demand from buyers across the board. RE/MAX Canada predicts that low oil prices will encourage the local workforce to stay in Nova Scotia and motivate those who have relocated outside the region to move back to their home region.
Luxury Property Destination
Canada has massive appeal to second and permanent home buyers and represents excellent value for money for foreign investors. More recently, Canada has been earmarked on the luxury property market, as a number of luxurious lifestyle developments have been successfully marketed to international buyers.
Canada is an attractive option for luxury property; real estate is a bargain by international standards, in a country that is ranked highly for its quality of life, political and economic stability as well as its strong property laws (Source: RE/MAX Canada).
Sales of million-dollar homes in Canada experienced a dramatic hike in 2015 with year-on-year sales increasing by 48% in Greater Toronto and by 46% in Vancouver, according to Sotheby’s International Realty. The luxury real estate agency commented that “rising detached home prices and changing consumer preferences propelled demand for C$1 million-plus homes in major urban centres”. A similar scenario is expected for 2016.