Real Estate

Real Estate Investing in Canada

According to a survey the time, which the America refers to as the great recession, badly affected the US real estate. An estimate is that one out of every five hundred houses went into foreclosure process. It is the consecutive fourth year and there are still no signs for the USA real estate market getting any better. However, on the other hand, the Canadian real estate market has been doing great. The Canadian banks showed no failure even in the great depression hit. Amazingly, the delinquency rate of the mortgages in Canada is less than one percent. The question is how Canada came on top in the real estate when the whole economy is going through recession. The first thing, which is understandable, is the way their banks performed. They used a strategy where the chances of loss were minimal. The banks in Canada lend money to those who people, whom they thought will be able to pay it back. It sounds simple.


However, it requires a great responsibility at the end of the bank to conduct a proper enquiry for each individual who applies for the loan. The best part is that it showed results. If you compare the real estate of USA with Canada, the agents in Canada are not as busy as compared to the agents in USA. The difference in population is also an important consideration here. Canada has only recorded population of 34 million only, while USA has a population of over 307 million. However, when we compare both the markets, the economy is also an important factor. USA is ranked number 1 in the world’s economy, while Canada is only 9th. Considering all the above factors, it is obvious that adopting the standards, which the Canadian banks have adopted might not be as easy and simple for USA banks. But one thing is for sure, that the Canadian Regulatory system of Banks has proven to be very effective especially for their real estate Equity investment market. Another important factor is that the Canadian homebuyers do not get any write-offs on taxes like in USA.

The only thing a Canadian homebuyer receives on buying a property is capital gain tax exemption. Therefore, as there are no mortgages interest deductions, the Canadian have to quickly pay down their mortgages. Another important factor is the non-recourse loan. The Canadians homeowners are required to pay off the mortgage debts even if they have lost the home. This way a homeowner cannot get away from any real-estate loan debt. These strategies, which differ in the Canadian real estate, can be a great lesson for the USA real estate. The fact that Canadian real estate has performed a lot better than the USA real estate during the last few years proves that they must be doing something right. Whether it be the banking strategies or mortgage regulations, the experts should analyze and compare both the markets and see what is there to adopt from their strategies.

Advertising An Apartment for Rent

advertising an apartment for rent

Within a few hours, I had received a dozen phone calls from people who had seen the apartment for rent ad I displayed. I began to keep a list of their names and phone numbers saying that I would get back to them. I didnt want to show the apartment until the weekend, which was still several days away. Two days after announcing that I had an apartment for rent, I had more than sixty phone calls. I was getting quite annoyed and was seriously considering asking more for rent. I now had fifteen people lined up to examine the apartment. The sound of the phone ringing was now irritating me.

I was also amazed that some people had the nerve to call at the most inconvenient hours. There was no way I’m talking to someone about an apartment for rent at midnight. I didn’t even bother to take that insensitive persons information, I just hung up angrily. I contacted the newspaper the next day and requested them to remove the apartment for rent ad. I was in no condition to deal with another fifty phone calls. Sure enough though, when I arrived home, my answering machine informed me that I had eighteen new calls. I could not believe that an apartment for rent was so much in demand. I called the current tenant and asked her to remove the sign from the apartments window.

advertising an apartment for rent

That weekend, I started to display the apartment and I was struck at the quality, or lack of, that people showed. Some of them were unable to provide any references. My favorite was the young girl who didn’t have any references or job, and said that her married boyfriend was finding her a new apartment so she could be closer to him. I couldn’t stop myself from wondering if her married boyfriend was someone I knew. By the end of the weekend I decided that the apartment for rent sign would not be displayed again, as I have found a few desirable tenants. Next time though, I’ll make sure that I ask for more rent.