Canada 2007 investment potential "ripe"

Assetz writes about Canada

5th January 2007

Canada is fast becoming one of the world's top locations for overseas property investment outside Europe, according to latest reports.

As the UK property market looks increasingly uncertain for the next 12 months - Assetz predicts rises of between seven and ten per cent whereas Halifax expects gains of just four per cent - canny investors will begin to look across the pond to Canada where annual capital gains are set to reach 9.4 per cent, according to the Canadian Real Estate Association.

Canada has been voted the 'best place to live' for several years running by the United Nations and, perhaps more notably, British tourists are flocking to the north American country in increasing numbers, partly due to the new breed of low cost flights to hit the market - chartered airlines now cost as little as �70 one way to both Vancouver and Calgary.

The main reason why Canada has become so popular with Brits of late is its extended ski season which lasts from November until June, considerably longer than its European competitors.

Resorts in British Colombia and Mont Tremblant have long been noted as some of the best in the world and some pistes even have their own snow making facilities to ensure that visitors can ski all year round.

Thus the jet-to-let potential of Canadian resorts is a market that investors will have a heavy interest in.

Martin Sadler, sales manager of Assetz International comments: "With one of the longest ski seasons in the world and a wide and varied range of summer activities, Canada is truly a year-round global destination.

"Prices are still considerably cheaper than in most other mature markets, with a typical one-bedroom ski apartment costing around �150,000.

"Strong capital gains, low interest rates and growing demand from the British holiday market are ensuring Canada makes an impact on British investors looking for affordable growth property."

Base interest rates in Canada are currently at six per cent and mortgages can be snapped up at around 0.85 percentage points less than this rate. Mortgages are widely available and even as a non-resident, they can be bought for 65 per cent of the purchase price.

Property investment specialist Assetz launched its Assetz Canada division on the January 1st 2007 to cope with increasing demand for British investors looking to capitalise on rental opportunities.