That salary ceiling is definitely one of the reasons I left for the states. Funny thing: that article goes to pains to point out that foreign investment into Canadian housing is a big issue, and I'm now watching the Toronto market, with the depressed exchange rate and looming recession, wondering whether I should turn around and buy property as an investment. There are tricky factors surrounding when and what to buy, but it could be sound over the long term, considering that the city is a seat of power for government, finance, and healthcare.
>wondering whether I should turn around and buy property as an investment
Why would you do this? There's been nothing but talk about a housing bubble, especially in Vancouver and Toronto. This seems like the worst possible time to buy property there, especially if you take any debt to do it.
This has been the talk for many years now. I know people who have been waiting for the bubble to burst, and now have absolutely no chance of ever getting into the market.
I'm estimating since the chart isn't precise. It looks like, from 2013, the average change is:
single family home: 1.1 million --> 1.4 million = 8.37% return
condo: Hard to tell. Not as large.
Am I reading that chart right? Of course, that doesn't tell you the increase in price in existing homes. And that return rate comes with interest, fees, property taxes, maintenance and the massive downside risk if we're in a bubble.
This is a very rough calculation on my part, so let me know if it's wrong.
That said, as to the original question, which was whether someone should invest now: With the massive economic slowdown + the large drop in Calgary real estate prices, this seems like a particularly bad time to invest, even if it might theoretically have been better a few years ago.
