Canada might see that influx of immigrants due to political changes in the US, just maybe not from where originally thought. While many American celebrities and sports stars publicly announced moving to Canada if Donald Trump won the Presidency, such a mass exodus has yet to take place.
In fact, there have been more American professionals keeping their word than the famous. A Texas couple employed by the video game industry said the election wasn’t the only reason they are leaving the US for Canada, but definitely a tipping point for them. They are in the process of applying for Canadian citizenship.
A young student CEO, Raya Bidshahri, said that she feels more welcome starting a company in Canada because she is Muslim and Canada is more accepting in the current climate.
This is where real estate investors can cash in on prime Canadian markets such as Vancouver, Toronto, and Montreal. Due to President Trump’s immigration Executive Action on January 27, the United States is set to be much more strict, allowing Canada to benefit as immigration is more open than in the US.
An influx of immigrants means a need for housing. When moving to a new area, especially a new country, few people want to buy homes immediately without learning the neighbourhoods and establishing roots. This leaves the rental market to fill the housing need.
However, political issues are not the only reason that people move to Canada. Canada has six times less gun-related violence that the US, giving citizens and visitors a feeling of safety. The gun licensing process in Canada requires a safety course exam and a 45-day application process.
Another big reason people move is that Canada has been providing heath care for its citizens since the 1960s. Patients pay very little and have seen an overall increase life expectancy through the decades.
When considering starting a family, Canada’s employment insurance plan has a considerate amount of parental leave. The plan, based on time on the job, and hours worked the previous year, gives 17- to 52-weeks of unpaid leave to new mothers. Those worried about taking leave without pay, are allowed for 15 weeks of paid leave for mothers and an additional 35 weeks for either parent at 55 per cent of their pay after a new child is born or adopted.
With glowing recommendations to move to Canada, investors can pick up real estate knowing people will be filling their units almost immediately.
Canadian real estate is a great deal for investors for a number of reasons. The most attractive reason is that the US dollar goes a lot further in Canada. The current exchange rate is around 33 per cent, giving investors with US dollars, $133,000 to spend compared to same $100,000 in Canadian Loonies.
The Toronto Real Estate Board stated in January that the rental demand is high but available units are down. Rent has increased in its year-to-year average for 2016-17. Showing that the rental market is strong and new rental properties are needed to meet the demand.
According to the Toronto Real Estate Board’s announcement on March 3, the Greater Toronto realtors reported an increase in overall sales of 5.7 per cent compared to last February. Giving investors the picture that real estate is changing hands and that is excellent news for those looking to buy property. Investors are needed to fill a housing demand.
Canada is poised to gain new citizens throughout the year. A need for rental housing is the strongest in markets such as the Greater Toronto Area. Toronto is known for its education, strong job market, being multicultural, and socially accepting of all people.
In spite of being the fourth largest city in North America, Toronto is ranked as one of the world’s most liveable. Toronto is one of the cleanest cities with miles of public parks and trails, giving all citizens year round activities in which to participate.
The writer is Director at Buttonwood Property Management.