Investors’ flight to Canada a distinct possibility post-Brexit

The U.K.’s signalling of its desire to exit the European Union might initiate a capital flight to other markets, according to an industry observer.
 
In his recent analysis, PropertyGuys.com founder and chief analyst Walter Melanson argued that the lengthy process involved in the U.K.’s departure would make investors start looking for better prospects elsewhere, as reported by Romana King for MoneySense.
 
“Investors still want to buy real estate. They still want to park their money in an inflation-protected investment,” Melanson stated. “And despite headlines of overheated markets, Canada still looks like a great deal.”
 
“They’re not looking for cash flow by renting it out or to make a buck on the appreciation value. They’re looking to park their money. It’s a flight to safety,” he added.
 
Melanson said that Canadian authorities need to start thinking about making the whole country, and not just select pockets, more attractive to investment—and locales outside the overheated housing markets of Vancouver and Toronto would be good places to start.
 
“We don’t want to scare money out of Canada, but the feds need to figure out where they want foreign investment and then build those incentives,” Melanson said.
 
The results of the Brexit poll, which had the “leave” side winning by a slim margin, sent global markets on a tailspin due to the resulting uncertainty.
 
The withdrawal of the U.K. from the EU would necessitate the negotiation of new and separate agreements with Britain’s trading partners, including Canada. Observers warned that this is a hideously convoluted process that would take years, and even possibly decades, to complete.

Related Stories:

Canada real estate, exports to experience significant Brexit impact - analysts
Economic aftershocks of Brexit will keep Canada mortgage rates at record lows

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:
Northwest Cove, Joly, Venise-en-Québec, Tay Valley, West Lake Ainslie

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Poll

Have your investment plans changed for 2017?