The key differences between residential and commercial real estate investing in Canada. Here are three main takeaways:

• Residential real estate is more accessible for beginners, requiring lower down payments (as low as 5% for house hacking, typically 20% for investment properties) and offering simpler management, though with lower returns (5-8%).
• Commercial properties require higher initial investments (20-30% down, sometimes up to 50%) but can offer superior returns through longer lease terms and net lease structures where tenants cover various expenses.
• While residential properties provide more stable income during economic downturns since people always need housing, commercial properties are more vulnerable to economic fluctuations, as evidenced by their performance during COVID-19.

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Canada's recent election where Carney won, with both major parties having similar housing and economic policies. The conversation explores post-election economic challenges, including trade tensions with the US and potential recession concerns⁠⁠.

• About 85% of Canadians voted for similar housing policies, with consensus on issues like lower taxes, help for first-time buyers, and the need to build 300-500k homes per year⁠⁠.
• Trade tensions with the US are creating economic uncertainty, with Carney and Trump scheduled to meet, while Deloitte predicts a recession and RBC forecasts a significant economic slowdown⁠⁠.
• The government is planning targeted responses including infrastructure spending and immigration policy changes, with permanent resident intake being reduced from 500,000 to 365,000⁠⁠.

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This episode's second part focuses on the seller's perspective in real estate transactions. We explore key considerations and provide practical guidance for homeowners looking to sell, addressing common questions about the selling process.

• Selling Costs: The total cost of selling a home includes REALTOR® fees (3-7%), legal fees (~$1,500), staging costs, cleaning fees, and potential mortgage penalties.
• Market Timing: While late spring and early summer are typically optimal for selling, market conditions can vary significantly, making timing subjective.
• Property Value Assessment: Realtors use Comparative Market Analysis (CMA) to determine property values by examining similar properties, analyzing sale prices, and considering factors like location, features, and market conditions.

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The Canadian federal election on April 28, 2025 presents three distinct approaches to the housing crisis:

• Liberal Platform (Mark Carney): Offers a middle path with both government intervention and market incentives, including a new federal housing developer (Build Canada Homes), MURB tax incentives for rental construction, and GST cuts for first-time buyers up to $1M.
• Conservative Platform (Pierre Poilievre): Proposes a free-market approach with significant tax cuts, including capital gains tax deferral for reinvestment, GST elimination on homes under $1.3M, and reduced government involvement in housing.
• NDP Platform (Jagmeet Singh): Advocates for a housing revolution with massive public spending, stronger regulations, and more tenant protections, including rent controls and restrictions on large-scale investors.

The election is notably polarized, with polls showing over 80% of votes concentrated between the Liberals (45%) and Conservatives (37%), while the NDP sits at 8% support.

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The common questions in the Canadian real estate market- Answered! We address concerns from both buyers and sellers in a challenging market environment.

• A detailed guidance on the home-buying process, starting with saving for a down payment and getting pre-approved for a mortgage, followed by finding a real estate agent.
• Comprehensive breakdown of closing costs is provided, with recommendations to budget between 1.5% to 4% of the purchase price, including various fees like legal costs, land transfer tax, and property adjustments.
• buying versus renting, discussing pros and cons of each option - such as equity building and stability for buying, versus flexibility and lower upfront costs for renting.

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Rod Gilbert, president of the Canadian Construction Association, highlights the construction industry's challenges including COVID-19 impacts and the housing crisis. He stresses the need for infrastructure investment, streamlined permitting, and solutions for labor shortages. Gilbert advocates for government support and improved construction job perception to attract workers, aiming to strengthen Canada's infrastructure future.

• GTHA condo sales hit a 30-year low in 2024, with just 4,590 units sold.
• Purpose-built rentals now exceed condo construction for the first time since 1993, while single-family permits reach historic lows.
• Construction employs 1.6 million people and adds $151B to Canada's economy, though facing workforce and infrastructure challenges.

Canadian Construction Association

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John Orr and Kyle Pearce share their transition from educators to real estate investors and podcasters. They explore real estate partnerships, the Smith maneuver for leveraging home equity, and tax optimization strategies. The discussion covers partnership dynamics, financial strategies including cash damming and vendor take back (VTB), and emphasizes the importance of understanding debt, cash flow, and building a strong financial team for long-term success.

Learn more and connect with John & Kyle here https://canadianwealthsecrets.com/

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The ongoing U.S.-Canada trade war is impacting Canada's housing market, with economists warning of significant effects across all economic sectors. The housing market is showing weakness with plummeting sales and price declines, while the stock market experiences extreme volatility with the S&P 500 dropping nearly 19% since early April.

• A nationwide 5% drop in housing prices is expected, with major cities like Toronto and Vancouver being most vulnerable
• Construction costs have fallen in Toronto and Ottawa, though trade tensions could disrupt this trend
• Toronto's March 2025 real estate sales hit their lowest levels since 1995, potentially signalling broader national trends

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