A quarter of Canadians plan to buy investment property in next five years: Royal LePage survey

• By Brian Shaw
• Posted Monday, Jun 12, 2023 11:44 am

A quarter of Canadians plan to buy investment property in next five years: Royal LePage survey

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 33 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...[READ MORE]