Investment

One in four Canadians plans to buy investment property in next five years: Royal LePage survey

Published

1 year ago

May 27, 2023

Royal LePage said a new study uncovered a strong desire among Canadians to purchase a home for investment purposes. Photo by Alex Urosevic/Toronto Sun

Approximately 11 per cent of Canadians currently invest in residential real estate, with more than half of current investors saying they are likely to purchase an additional residential investment property in the next five years, according to a survey by real estate firm Royal LePage.

The survey, conducted by Leger, said 64 per cent of residential real estate investors own one property, while 32 per cent own two or more.

“There are more small business landlords in the country than previous data would have indicated and considerably more people interested in becoming property investors,” Royal LePage chief executive Phil Soper said in an interview. “So it’s clearly a product of the time and the economic environment of the perceived opportunity.”

Since their research on real estate investors is new, there is no baseline to compare it to, but Soper said the numbers appear to be higher than he would have expected.

The report said more than a quarter, or 26 per cent, of all Canadians plan to buy an investment property before 2028, with 23 per cent of Canadians who do not own a residential investment property saying they are likely to purchase one in the next five years.

“Despite higher borrowing costs in today’s post-pandemic real estate environment, the aspiration to own property for the purpose of investment remains strong,” it said.

Investors understand that there’s a critical housing shortage in the country, and realize Canada is welcoming half a million new Canadians a year — a figure that’s likely to remain high or even grow, Soper said.

Another issue that’s driving people towards investing in real estate, he said, is that rents are at an all-time high and have leapt forward at a rate even outpacing the high level of inflation.

“The combination of supply shortage, high rents (and) more homeowners looking for rental to put a roof over their heads has attracted more people to the sector,” Soper explained.

The survey found the opportunity for their property’s value to appreciate over the long term was the top factor investors consider when buying property. Positive cash flow on a monthly basis ranked second, and the low maintenance and variable expenses was third.

Forty-four per cent of investors owned a single-family detached home, while 37 per cent invested in condominiums or apartments.

Soper said with the stock market being volatile and producing negative returns in many asset classes over the last years, investors have taken alternative investments into consideration. Young people in particular, he said, who might have been been thinking about investing in tech companies, have had a change of heart as the sector has been hit hard over the past months.

The study said the increased cost of borrowing has had a significant impact on variable-rate mortgage holders over the past year, with more than 30 per cent of investors in Canada having considered selling an investment property as a result.

Soper said that while that figure suggests there will be some churn in the pool of investors, it means the majority are not considering selling and that the sector could thus see material growth.

“Clearly, the big economic drivers at work here are leaning in favour of this particular investment class,” he said.

The study, completed online between March 2 to 17, 2023, surveyed 1,003 Canadian adults who own one or more residential investment properties. It said no margin of error can be associated with the web panel. The percentage of Canadians that owned at least one investment property, including renting out part of their home, was determined from an online survey of 10,021 respondents.

Earlier this year, data released by Statistics Canada showed that at least 20 per cent of residential real estate was owned by investors at the beginning of 2020 in each of the five provinces tracked: Nova Scotia, New Brunswick, Ontario, Manitoba and British Columbia.

• Email: dpaglinawan@postmedia.com | Twitter:

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Economy

S&P/TSX composite up more than 250 points, U.S. stock markets also higher

Published

14 hours ago

September 19, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.

The S&P/TSX composite index was up 254.62 points at 23,847.22.

In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.

The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.

The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.

The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Canada’s Probate Laws: What You Need to Know about Estate Planning in 2024

Published

16 hours ago

September 19, 2024

Harry Miller

Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.

For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.

Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.

Let’s unearth how these updates can simplify the process for you and your family.

What is probate?

Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.

Here’s how it works.

Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.

Probate ensures everything is done by the book, giving you peace of mind during a difficult time.

Recent Changes in Canadian Probate Laws

Several updates to probate law in the country are making the process smoother for you and your family.

Here’s a closer look at the fundamental changes that are making a real difference.

1) Virtual witnessing of wills

Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.

Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.

2) Simplified process for small estates

Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.

Fewer forms and legal steps mean less hassle for families handling modest estates.

3) Substantial compliance for wills

Courts can now approve wills with minor errors if they reflect the person’s true intentions.

This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.

These changes help make probate less stressful and more efficient for you and other families across Canada.

The Probate Process and You: The Role of a Probate Lawyer

(Image: Freepik.com)

Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.

Here’s how they can help.

Navigating the legal process

Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.

Handling paperwork and deadlines

They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.

Resolving disputes

If conflicts arise, probate lawyers resolve them, avoiding legal battles.

Providing you peace of mind

With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.

With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.

Why These Changes Matter

The updates to probate law make a big difference for Canadian families. Here’s why.

Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.

With these changes, probate becomes smoother and more manageable for you and your family.

How to Prepare for the Probate Process

Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.

Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.

These simple steps make the probate process easier for everyone involved.

Wrapping Up: Making Probate Easier in Vancouver

Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.

Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.

Economy

Energy stocks help lift S&P/TSX composite, U.S. stock markets also up

Published

3 days ago

September 17, 2024

Anne Joseph

TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.

The S&P/TSX composite index was up 34.91 points at 23,736.98.

In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.

The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.

The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.

The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.

This report by The Canadian Press was first published Sept. 17, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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