Two years ago, following Donald Trump’s electoral victory and subsequent realization of the US presidency, we noticed a spike in Americans googling the phrase, “move to Canada” and posted an article about it on LinkedIn (the article is provided below for your reference).
Foreseeably, this trend could prove enormously beneficial to the Canadian real estate market as Americans seek out new living options. In June of this year, there was another surge in google searches that is depicted in the graph below.
Might this have anything to do with the US-Canadian trade wars? Consider the timing of this overwhelming spike and let us know your thoughts.
Why Trump May be Good for Toronto Real Estate:
Published on November 10, 2016 via Matt Elkind on LinkedIn:
As construction planning begins for the largest wall built since the Great Wall of China over two thousand years ago, it’s time for Toronto based real estate investors to ask: What does this mean for our real estate market? It is still too soon to determine the policy mandates from the campaign posturing but it seems reasonable to expect that the United States under a Trump presidency will be protectionist and has already created global uncertainty.
I believe both of these things will ultimately be a benefit for Toronto and the Canadian market for two fundamental reasons.
1. It makes Canada a more attractive place to live and from an international perspective do business with.
2. It will maintain a low interest rate environment as result of global economic and political uncertainty.
While “Moving to Canada” talk is part of every presidential election, Google searches for the term spiked in April when Trump won the GOP race and spiked again on election night with the Trump win. Citizen and Immigration Canada confirmed that their website went down for over an hour due to a surge in traffic.
Canada Real Estate Investing - Weekly Roundup July 15, 2019
Last week we saw vacancy rates in Toronto rise (ever so slightly!), which might mean that rental rates will likely level off (and perhaps even come down… ever so slightly). Hamilton makes headlines again as we see the city becoming more of a metropolitan area with new condos that are very popular for young individuals and first-time buyers looking for low-cost city living when compared to Toronto. And we have great news for variable mortgage holders with Bank of Canada maintaining its interest rate!
You may have heard some of the recent reports stating that a good chunk of Toronto Condos have a negative carry; meaning the inward cash flow on a property—the money received from rent—does not cover the cost of mortgage and condo fees at the end of each month.
If you know what you’re doing, negative carry is hardly a concern.