How to Shop for
Student Residence Real Estate

Smart international parents purchased property for their sons or daughters while they studied in Canada. These real estate purchases in good locations provided a convenient and safe student residence for their children.

North American Real Estate has price cycles that last 5 to 10 years. The secret to smart investing is to buy during a low price cycle and sell during the high peaks. Many parents have enjoyed the North American price rises from 1989 to 1997 and again from 1999 to 2006 and most recently from 2012 to peak during 2018. Most of the last two cycle price increases have been in the 100 to 200 percent range.

Many of the parents who enjoyed good timing had their $200,000 condo or townhouse rise to $400,000 over the entire cycle period. When the parents calculate the cost of tuition, food, clothes, books and expenses over the usual four years of university many still made a profit or they can just count the education cost for their children as free.

This type of longer-term intelligent investing keeps the rich families rich and enables them to grow richer every year.

The only secret to renting is to rent (for self use) when the prices slide and you are waiting for the prices to bottom before purchasing or rent (to tenants) if you have a property are waiting for prices to rise to maximize your capital gain before selling.

(fall 2006) Recent real estate commentators have stated that some Canada local real estate markets have either slowed, topped or cooled and require careful analysis before making any purchase decisions. If the lessons of the last two real estate cycles are to be used then renting can be an excellent option if prices are sliding but not yet at the bottom.

(2009 Update) Many real estate analysts say the absolute bottom was October 2008 - and the bottom may last another year or two. If you have cash this may be the time to look for bagains. You will have to wait 5 to 10 years for the up cycle to mature.

(2010 Update) This looks like a two bottom recession - yes the prices are still moving lower and will stay this way for another year or so. The only good thing is that if you do buy now there are mortgages available if you have an established cash flow.

(2013 spring update) Florida real estate reports a 6% increase in prices - first uptick since 2008. This may be a fuzzy signal that the double-bottom has ended. We just have to see when there is a real raise.

There are two Canadian real estate bubbles - Toronto and Vancouver - which did not crash and burn in 2008. They did slow down and cooled but did not crash. Parents looking for student residences in these two locations may have to use a different strategy as properties may not show a huge rise from a crash as in many USA locations.

(2014 spring update) Unemployement is keeping prices from rising. Lower wages and less jobs equals a slower growth for real estate prices. The Toronto bubble is still in place with prices too high for normal middle class purchasers.

There are many Homestay education services and AirBnB that real estate investors can utilize to earn money. Homestay projects require the correct form of real estate and a zoning category that allows for this business activity.

All homestay businesses are service and cash flow based and require day to day management and supervision. The earnings tend to average about $500 to $1,000 a month per dedicated bedroom and are an excellent part-time business and investment.

(2018 update) Prices rose 15% during 2016 and about 25% during 2017 and with the mortgage rule changes and 15% foreign owners penalty tax the peak may be be finished by mid 2018.

The year 2020 started with a 6% rise then the COVID 19 hit with a serious impact. As of August 2020 the market of less listings, with unsure rental income and low interest rates is whipping the market in both directions.

We used cash to buy property in July 2020 and hope that demand continues for good value residential property.

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