Canadian real estate hasn’t reached its full potential, according to one real estate mogul’s advisor.
“Canada is a vibrant economy and some people ought to step in and take advantage of it” George Ross, executive vice president and senior counsel to the Trump Organization told BNN. “I think it’s under-utilized – not over-utilized.”
Ross has been advising Trump since the 1970s and has worked for Trump since 1996. He is also featured in “The Apprentice.”
According to Ross, investors should play the long-game when it comes to Canadian real estate.
“I don’t think the buy-sell or the short sale is the answer,” Ross told BNN. “(Real estate investors) are attracted because of the money, but they don’t talk about how long it takes to get the money and they don’t take about the fact you could be in there and not recover what you invested.”
It’s an interesting stance, considering CMHC’s recently released data is calling for fairly stagnant growth in terms of starts and prices over the next two years.
Housing starts are expected to decline by 4.1 per cent – and range between 166,540 and 188,580 units -- in 2015. Prices, meanwhile, are expected to increase by 3.4 per cent, according to the Crown Corporation’s most recent housing forecast.
As for the near future, housing starts are expected to range between 162,840 and 190,830 in 2016.
The average price is expected to fall between $402,139 and $439,586 this year and between $398,191 and $457,200 in 2016.
“The gradual slowdown in the rate of price growth is explained by the expected change in the composition of MLS® sales toward more moderately priced homes,” the Crown Corporation said in its official release.