What is 2019’s safest investment in Real Estate?
Seniors housing touted as 2019’s safest investment
Source from Canadian Real Estate Wealth Canada
With seniors slated to comprise nearly a quarter of Canada’s population by 2030, real estate that caters to their needs is being touted as one of the most investment-friendly sectors this year.
“As population ages, we run into capacity issues within hospitals, so there will be a huge priority in keeping older adults living at home longer,” said Stroller. “There is greater need for residences designed to support and help older adults remain independent longer.”
That need is already manifesting in through-the-roof demand for monitoring devices for fall detection and wandering.
“Scarcity will be a major issue in the senior living sector,” said Stroller. “When you can find an industry that’s growing, you want to attach yourself to it, and this is one of those industries because we see an increase in consumer demand, an increase on the business side with suppliers and technology, and that should be met with an increase in supply.”
Retirees’ influence heating up recreational home prices
Source from Canadian Real Estate Wealth Canada
The latest study by RE/MAX found that the influence of retirees on Canada’s recreational housing market has only grown stronger over time.
As of this year, retirees accounted for 91% of activity in the segment, compared to the 55% proportion in 2017, the Financial Post reported.
This was concurrent to the average price of this property type increasing by a notable 13% year-over-year last June – a development that RE/MAX said is fuelled by retirees settling down on their already purchased recreational properties.
“A lot of them are cashing in and buying recreational properties or they’re refinancing and just taking some equity to do it or their straight up selling their urban home and moving into recreations markets full time,” RE/MAX Integra Ontario-Atlantic Canada Region executive VP and regional director Christopher Alexander said.
Nearly 20% of Canada’s elderly said that they are using their recreational properties as their retirement homes, while one-third of the RE/MAX respondents stated that their purchases are meant as investments.
“Combined with the fact that Canada’s senior population is the largest it has ever been … pricing has increased across the majority of markets,” Alexander stated.
Among Canadian seniors’ preferred recreational properties are waterfront assets, with non-waterfront, water access, and ski-in properties coming just behind.