April 25, 2023:

Is buying real estate a good investment in Canada? Learn What You Need to Know.

Is buying real estate a good investment in Canada? Learn What You Need to Know.

With Canada consistently ranking amongst the best places to invest in real estate, it's no surprise that many people are considering buying an investment property. But is investing in real estate in Canada a good option? Let's explore some of the most important factors to consider before investing in property in Canada.

What is the 1% rule in Canadian real estate?

The 1% rule states monthly rental income should not exceed 1% of the purchase price. Additionally, you need to consider whether you will have a 20% down payment for an investment property in Canada or if you can get additional financing from a lender. When it comes to how many properties one person can own, this depends on local government regulations and building codes.

Why invest in real estate in Canada?

Understanding what kind of investor you are before committing your money to real estate investments is essential. Is it for short-term profit or long-term gains? Long-term investments tend to have more stability, while short-term investments offer faster rewards but with higher risk. We recommend finding a reputable real estate agent who understands your needs and wants as you start your investment journey. 

What taxes and regulations apply to an investment property?

When considering potential returns on your investment, it is essential to factor in taxes and other applicable regulations like HST (Harmonized Sales Tax), GST (Goods and Services Tax), and any other provincial taxes associated with purchasing a home or renting out a property. Potential investors should be aware of any tenant eviction laws that may apply and any labour laws related to hiring help for renovations or repairs on their investment.

Is now a good time to invest in property in Canada? 

Whether now's the right time for investing depends on several factors, including: 

  • supply and demand dynamics

  • current interest rates

  • market conditions 

  • vacancy rates

Ultimately, it will come down to making an informed decision by researching current trends and understanding where the market might be headed over the next few years in the location you are interested in.


While there are risks involved with investing in real estate, those risks can be mitigated through research and due diligence when choosing where and when to invest. Reach out to a Faris Team Representative to help navigate your journey. By following these guidelines, you can decide whether investing in real estate right now is worth it – both financially and personally!

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