By: Chala Speciale
The entire world watched with jaws dropped in the early hours of the morning as the 45th President of the United States was announced – none other than reality TV star turned Politician, Donald Trump. For millions of millennials across the globe, this was the second worst day in American history after 9/11.
As the election results flooded in, the Canadian Immigration website crashed from such a high volume of visitors. Since then, our phones have been ringing off the hook from Americans looking to move to Toronto immediately. So, what does this mean for the Canadian real estate market?
More demand may help support our skyrocketing real estate prices, especially in larger metropolitan urban regions such as Toronto. This is considering the American dollar does not plunge in value and eliminate the high buying opportunities Americans would have in Canada.
Americans looking to move north probably won’t be interested in buying property in British Columbia due to the recently implemented Foreign Buyer’s Tax. This 15% tax has deterred potential home buyers from Vancouver, and has funnelled foreign investors into the Toronto market.
Perhaps some Americans will take a more cautious approach to moving to Canada by testing the waters and purchasing a secondary property like a cottage or condominium first. This way they can determine if they want to make Canada their permanent place of residence before they uproot their entire lives to escape Trump. Alternatively potential American expats can also rent to get their feet wet in this great city of ours.
So, what does this all mean for Canadians? In Canada, we have witnessed mixed feelings when it comes to foreign real estate investment. Although it is in a large way responsible for our red-hot market in Toronto and Vancouver, it has been criticized for pushing housing prices way above the affordable mark for families and first time home buyers. With an influx of Americans making their way up north, we could see numbers continue to climb while the Greater Toronto society becomes evermore sprinkled with diversity and culture.
For now, all we can do is hold our breaths and wait to see what January 2017 brings us. In the meantime, get in touch with us at Performance Property Management if you are looking to purchase or rent property here in Toronto. We are currently offering our services for free to anyone looking to move here from the United States. Visit us at www.performancepm.com