Ontario Property and the Canadian Economy
Ontario is the second-largest province in Canada geographically. In terms of population, it is the very largest. It serves as the center of Canada’s industry and economy as it leads the country in manufacturing more than half of all Canada’s goods and 80% of the country’s exports. Other industries that play a hearty role in Ontario’s economy are agriculture, forestry and mining. Aside from the industries themselves, Canada has seen a much smaller fiscal impact when compared to the rest of the world during this recession. How does an economic assessment play a role in the current land and real estate position of the province?
The biggest concern you need to be aware of is how a company called MPAC functions. The purpose of this company is to make accurate assessments on and value the property of real estate in Ontario. The company is formatted to focus on issues locally. To assess the value on your property, MPAC professionals analyze information regarding current property and land sales in your area. These sales provide a foundation for value assessment which leads to a determination of your property taxes. What you pay as a tax is directly related to the assessed value of your property. It then becomes understandably important to apply simple but accurate real estate assessment techniques.
Since the Canadian economy is stronger than many other parts of the world, more people want to move there to find a solution to their personal financial troubles. The strength of the Canadian dollar has not negatively impacted the real estate market in the slightest. On the contrary, as the economy continues to improve but interest rates continue to stay low, the demand for property continues to rise, pushing up the value of property investments. Plus, when potential movers to Ontario consider the benefits of living in the province, the information they gather quickly leads them to the conclusion that land is less expensive, the cost of living is lower, and yet the standard of living is very high.
Take into consideration the fact that current economic trends are encouraging a great number of people to move to Ontario. This leads directly to an increase in real estate demand which many agents believe will lead straight to a boost in property values now as well as in the next years to come. That means if you have property in Canada now, hold onto it! Something very advantageous for new immigrants with this situation is that even non-resident Canadians can own property in Ontario. New settlers of the area can begin taking advantage of the great housing market and economy of Canada immediately upon arrival.
When trying to assess the impact of the Canadian economy with sale and tax prices, understand that investing in a market with quickly increasing gross incomes will be the best place to invest in Ontario property. When average income increases, property prices follow suit. Remember, it is not the income dollar amount that matters but the actual rate of increase in the area. Even if the average income in one area is lower than in another, if the increase percentage is higher, the real estate market will be more advantageous for you to invest in.
Increase in property value has a domino effect. If a single neighbourhood were to, for whatever reason, see a sudden increase in property value, adjacent property markets will be impacted for the better as well. While surrounding areas experience value increases at a slower rate, the pace will pick up eventually. This occurrence is seen all over surrounding areas of successful markets as well as communities that surround other markets seeing redevelopment and other improvements. If you follow this pattern in your investing habits, you easily can discern the micro economy of one area and how it will soon affect surrounding areas, giving you a better idea of where to invest your effort, time and money.
It is clear that the economy and real estate market are directly linked in terms of immigration and property value increase as well as effects one booming community has on those around it.