Are you looking to tap into the Canadian market? Now’s a good time! The 2018 figures show that foreign direct investment in Canada has rebounded. Before you make any firm decisions, there’s a number of important things you need to know about investing in the Canadian landscape to ensure you make a profit. Follow the information provided in this guide to foreign direct investment in Toronto and Canada to ensure you’re making the right decision for your company and yourself.
Stats show that foreign direct investment in Canada rebounded in 2018 after a dismal 2017. The inflow of $51.3 billion last year occurred even with tensions over NAFTA and the oil industry. Most of this came from non-energy sectors of the economy, with real estate investment doing impressively well again. What has fueled this influx of capital? Ottawa has put a focus on attracting investment and has introduced various capital write-offs to promote more growth here in Canada. This means businesses that invest here will be able to write off capital expenditures much faster – an attractive motivator that is driving new foreign investment into the area.
The Canadian Real Estate market is still very attractive for those looking to buy a stake in a specific asset. Money from China and other countries is still pouring in as Canada offers more affordable investment opportunities compared to other developed countries. In 2018, Canada’s commercial real estate market saw $43.1 billion in investments, according to CBRE. With the recent foreign buyers tax and a number of new regulations on foreign investment in Vancouver, Toronto has become the new target for those looking to turn a profit. In fact, Bloomberg reported that Toronto took in $526 million in Asian investment alone in 2018, up significantly from 2017. Why the influx, given that Ontario has introduced their own 15% foreign buyers tax? The Toronto market is stable, offers a booming tech and financial industry that attracts young families and millennials, and tens of thousands of immigrants are expected to drive population growth in the coming years. Plus, the stringent new mortgage rules have also helped push prices down – another reason to get in now.
Toronto and Canada present a number of opportunities for foreign investors. Our country is still a safe haven with stable rules and high-value potential. And with Vancouver reconsidering the amount of foreign investment they want to permit, Toronto may become the new melting pot of foreign money. Supply is tight, but there are still plenty of good investment opportunities available if you know where to look.
Reach out to us at Medallion Capital Group, and we’ll point you in the right direction. Contact us today to discuss potential apartment, retail, industrial and office opportunities in Toronto and around Canada.