Which estate is most likely to be bought by a single buyer?
Real estate in Canada is the most likely place to buy a home, according to a new report from real estate agent BMO Real Estate.
“The majority of Canadian real estate is sold to people who live, work or study in Canada,” the study states.
“It is not a good idea to buy into the Canadian real market if you do not live here.”
BMO estimates that, for every $1 invested in real estate in the country, the average buyer spends about $5,000 a year.
The study suggests that buyers from the U.S. and Europe may be able to afford homes in Canada.
The median price for a detached home in Canada was $1.5 million in the first quarter of 2017, the most recent data available.
The average price for condos was $2.2 million in that period, according the study.
“Canadian real estate continues to grow, which means more and more people are choosing to buy property in Canada, which is good for the country’s real estate market,” BMO Canada’s President of Research and Analysis Richard Cogan said in a statement.
“We encourage Canadians to consider buying into Canada’s real asset base, whether in condos or single family homes, and to be aware of the risks associated with this type of investment.”
Canadian realtors have also been warning for years that buying a condo in Canada would be “more risky” than buying a house.
“A condo is not cheap, and you’ll need to make the decision based on a range of factors,” Burt Smith, an agent at the Canadian Real Estate Association, said in 2015.
In its report, BMO found that only about 15 per cent of Canadians were willing to pay more than a $1,000 deposit for a condo. “
Many people don’t feel comfortable buying a home in the United States or other European countries, so the decision to buy in Canada comes down to the fact that the Canadian market is not as expensive.”
In its report, BMO found that only about 15 per cent of Canadians were willing to pay more than a $1,000 deposit for a condo.
In contrast, about 90 per cent were willing “to pay $1 million or more” to buy an apartment, which it estimated would cost the average Canadian household about $1m.
“This is a market that is growing faster than most other countries,” said Smith.
“There is not much room for expansion.”