Property prices in Canada’s largest city, Toronto, may be spiralling out of control. But a perceived influx of overseas buyers isn’t to blame for the situation, a new report reveals.
Research carried out by the Toronto Real Estate Board (TREB) says, in spite of media reports, overseas investors are not pushing Toronto property prices up.
Figures gained by the TREB show that of the 113,133 Toronto residential real estate transactions conducted in the year to October 2016, just 4.9 per recent involved foreign buyers.
What’s more, more than 50 per cent of overseas buyers were acquiring property for themselves or family members – not for investment purposes. Only 25 per cent of all transactions involving overseas buyers were acquired as rental investments
The latest Canadian Real Estate Association data shows that between December 2015 to December 2016, the average property price in Toronto rose 19.9 per cent to CDN$730,472.
Therefore, if you’re planning on moving to Toronto – Canada’s most popular city for immigrants – any time soon, then it’s essential you start your new life with the most Canadian Dollars possible. Especially if you do want to buy a house in the city.
When exchanging large lump sums for emigration purposes, only a small change in the market can have a significant impact on the amount of money you could be potentially starting your new life with. And, as has been well documented, last year’s Brexit vote caused some larger than normal moves in the market.
Just prior to Brexit £1 would have purchased you CDN$1.880. However, within a few weeks of the Brexit outcome this rate had plummeted to £1=US$1.678. On an exchange of a substantial amount, say from the sale of your UK property prior to emigrating, such a fall has a massive impact on the amount of money you’ll have to start your new life. For example, if exchanging £150,000 the difference in Canadian Dollars received would have been US$30,300. In just a matter of days.
Since the Brexit announcement, the value of the Pound has continued to remain lower than pre-Brexit levels. In fact, it has fallen lower in the wake of President Trump’s inauguration. Yesterday the rate was £1=US$1.644.
Currency specialists, like Halo Financial, understand why the exchange rates are moving and just what impact this has on your currency transaction. What’s more, they can also explain how to make your money go further and give you a range options on exactly when you wish to exchange, and how much you should exchange at a time.
To find out how you can make sure you can get the best exchange rate possible, and take advantage of positive fluctuations in the markets, visit www.halofinancial.com
Article published 3rd February 2017