25% of Canadians plan to purchase an investment property during the next 5 years

According to a recent survey conducted by Royal LePage, more than a quarter of Canadians want to purchase an investment property within the next five years. However, high interest rates have made some property investors think about whether it’s a good idea not to sell.

The poll conducted by Leger shows that 26% of respondents are planning to buy an investment property within the next five years. Currently, 11% of Canadians already own investment properties, and slightly over half of them plan to purchase another one during the same time.

Phil Soper, the President and CEO of Royal LePage, underscored the appeal of real estate as a way of building long-term wealth: “We know that the Canadians value home ownership strongly, it’s obvious that owning real estate remains a desirable means for building wealth over time.”

Nevertheless, the survey shows that higher interest rates have darkened the outlook of certain prospective property investors. Only less than one-third of residential real estate investors say they have considered selling one or more of their properties due to the impact of higher interest rates. Among investors under the age of 35, this option was considered by 54% of respondents.

Despite the well-known challenges associated with Canada’s housing market, including high prices, high interest rates, and lack of supply, young Canadians keep showing a strong motivation to invest in real estate. The poll says investors between the ages of 18 and 34 were more likely to own multiple investment properties compared to those aged 35 and older.

Moreover, the survey revealed that 15% of residential real estate investors do not own their primary residence, with the majority of this group falling within the 18 to 34 age group. According to Soper, more and more young Canadians plan to include real estate investing into their financial planning for the future, and the survey results indicate many prioritize investment properties over owning their primary residence.

Among various types of investment properties, single-family detached houses are the most popular, accounting for 44% of ownership among investors. Condominiums ranked second at 37%, followed by townhomes at 11%.

When considering investment properties, 69% of real estate investors named the potential for long-term property value growth as their main priority. Positive monthly cash flow and low maintenance costs were also important factors for them.

Almost half (44%) of the investors noted that their investment properties were located not in the cities they live in. Proximity to post-secondary institutions influenced the decision-making process for 47% of investors when determining where to buy the investment property.


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