Affordability remains a challenge in the Toronto and Vancouver metropolitan areas, but the safest investment bet might not even be within Canada\u2019s borders.<\/p>\n
\u201cA lot of people don\u2019t realize that in the U.S. we\u2019re getting the lowest interest rates we\u2019ve had in the last three years,\u201d said Alain Forget, RBC Bank\u2019s director of business development in the U.S. \u201cAt one point, they were above 4%, but now they\u2019ve fallen. The challenges in key markets like Vancouver, most of B.C., and the GTA are affordability and, additionally, the mortgage stress test. The tighter mortgage lending restrictions affect the market from a diversification standpoint, but a lot of markets in the U.S., like Florida and Arizona, are affordable for Canadians.<\/p>\n
\u201cAnd in the U.S., we don\u2019t have a stress test.\u201d<\/p>\n
Moreover, a copacetic ROI in Toronto and Vancouver is becoming as cumbersome as passing the stress test is for an investor keen on portfolio diversification.\u00a0<\/p>\n
In Naples, Bonita Springs and Estero, located in southwest Florida, there were a total of 12,622 sales during the 12-month period ending May 31, 2019, which is a 4.7% rise over the same period a year earlier. Available inventory hit 7,698 units, which was up 11.8% from a year earlier.<\/p>\n
\u201cFor mortgage rates in the U.S., there\u2019s a window of three-to-seven year terms and they\u2019re the lowest rates we\u2019ve had in the last three years,\u201d said Forget. \u201cWhen we qualify investors for financing and leveraging in the U.S., .\u201d<\/p>\n
The Sun Belt states offer some of the best value in Canada and the United States, he added.<\/p>\n
\u201c. It\u2019s a very unique market. Florida, Texas and Arizona are good markets, as well, because they\u2019re affordable and you can find something for $200-300 per square foot\u2014in Miami, L.A. and New York, you\u2019re looking at around $1,000 per square foot\u2014and you can rent it out and make good income.\u201d<\/p>\n
Compared to Ontario, Forget believes the aforesaid markets offer much better diversification opportunities through real estate.<\/p>\n
\u201cWhen you have strong economic fundamentals, like Florida and Arizona do, besides the lifestyle and weather they\u2019re great markets because a lot of companies and people move there. They\u2019re good fundamentals for the long-term, which means you can increase the performance expectations of your investments.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Affordability remains a challenge in the Toronto and Vancouver metropolitan areas, but the safest investment bet might not even be within Canada\u2019s borders. \u201cA lot of people don\u2019t realize that in the U.S. we\u2019re getting the lowest interest rates we\u2019ve had in the last three years,\u201d said Alain Forget, RBC Bank\u2019s director of business development […]<\/p>\n","protected":false},"author":6,"featured_media":21976,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8389"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8389"}],"version-history":[{"count":1,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8389\/revisions"}],"predecessor-version":[{"id":21983,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8389\/revisions\/21983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/21976"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}