Thursday, November 4, 2010

Condos to provide good investment in 2011, report says

Another article out in the Financial section with PriceWaterhouseCoopers endorsing real estate.  Interesting read.   

Condominiums and greenbelt space will provide among the best investment opportunities in Canadian real estate next year, with the overall outlook remaining positive as long as U.S. woes don’t spill over the border, a report found.

It may also be the time to consider selling low-yielding assets in favour of buying properties in the U.S. as the market there recovers, the report by PricewaterhouseCoopers and the Urban Land Institute found.

Apartments, if any are available, offer the best security, it said. Investors should also look for underperforming retail or commercial space to redevelop as condos as Canadian cities grow vertically, it said.

A separate report by RE/MAX released on Monday found that condos are the number one choice for first time home buyers as the price of a detached home is unaffordable.

Condos represent one in every three homes sold in the Greater Toronto area, it found.

The Canadian market for real estate investment has held up better than the U.S. because of strong bank balance sheets and a sound economy. That said, while many investors say it’s a good time to buy, few are willing to sell at these levels.

The report was based on interviews with 875 of real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the U.S.

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