Resicom – Holiday Investment – 04-21 – LB

Trump Election to Boost Canada Rental Market

When Donald Trump was elected US president there was a lot of talk from famous American celebrities about fleeing to Canada due to political changes expected.

Months down the line there has been no sign of the celebrity escape forecast, but some American business people have already begun to move.

Furthermore, the Executive Action on immigration announced by President Trump has made many potential immigrants to the US look at other alternatives, and Canada comes top of that list.

Canada shows a more accepting attitude to immigration, and that is not the only attraction when compared to the United States.

Health care is freely available to Canadian citizens at relatively low cost, and the employment insurance plan in Canada also offers extensive parental leave when wanting to start a family.

Based on time on the job, and hours worked the previous year, the plan 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.

Gun law is also stricter in Canada than the USA. Whilst guns are available, there is a 45 day application process and safety course required. This has helped Canada to have six times less gun-related violence than the US.

Exchange rates are also favourable, with each American dollar worth 1.33 Canadian dollars, resulting in a third more buying power.

All of these aspects are resulting in more and more young immigrants moving to Canada, and these new arrivals need housing.

Most people moving to a new country, especially the younger generation, look to rent property before buying to investigate the best areas to live.

This means that rental demand in the main cities of Canada is steadily growing and likely to continue to do so.

Opportunities are there for overseas property investors to meet that rising rental demand in the main Canadian cities.

With the favourable exchange rate making money go 30 per cent further than in the US, properties can still be found at reasonable prices, ensuring decent rental yields.

Vancouver has seen extra taxes imposed on foreign investors, but the Greater Toronto area has no plans to follow suit.

Often marked out as one of the most popular cities in the world in which to live, Toronto is bound to be a favourite for new arrivals to Canada.

Property investors are required to supply the housing needed by these people as they embark on their new life.

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