Canadians spend more of their income on housing
Canadians spend a higher percentage of their income on housing than almost any other nation according to a new poll. A study by BlackRock found that for every dollar of income Canadians pay out 43 cents on housing-related expenses. That includes mortgage or rent and utilities. The US was around the same level and the Netherlands and Sweden spend more on household costs. The rest of the 20 nations polled though pay less with China spending just 15 per cent of their income on their home. The cost of living was highlighted by 68 per cent of respondents as being the biggest risk to their financial future. One of the reasons for Canadians spending more on household costs is a wish to pay down mortgages quicker.
Office construction is staying hot
The latest Canadian Emerging Trends Real Estate report from PricewaterhouseCoopers shows that office construction is not slowing down in our major cities. Toronto and Calgary are especially hot for new commercial property starts and the signs are that the high level of construction will continue well into 2015. Calgary is particularly popular with large corporations and many base Canadian headquarters in the city. Some experts though predict that older office space could be left empty or rents will be forced down if a slowdown in the energy sector puts the brakes on the economy.
Nova Scotia plans $50 million affordable housing boost
A new rental supplements program in Nova Scotia will give the region a much needed boost for affordable housing for seniors and low income families. The scheme will be part of a $52 million project to get more people into housing and will include 300 new affordable units. Landlords have broadly welcomed the program as it will give assistance to many to be able to afford to live in some of the thousands of empty properties throughout the province.
Loonie drops in value as economic data disappoints
The latest GDP figures released on Friday by Statistics Canada saw the Canadian dollar drop in value by around two-thirds of a cent. Economists had predicted a flat GDP result for August but there was a decline of 1 per cent. Analysts say that the drop is not a major concern and is still ‘respectable’. The loonie was put under additional pressure from Japan where the central bank upgraded a stimulus program.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Sydney Forks, Pontypool, Chase, Horsefly, Mill River East