Canadian real estate for foreigners

Canada is a great place for foreigners to buy real estate for investment, or a great place to buy real estate if you immigrate and come here to live.  There are essentially no barriers to the purchase of land or property in Canada by nationals of other countries.  Foreigners can buy land or property here, and rent it out, sell it, live in it, use it for holidays, or do anything else they like with it!

Immigrating to Canada is relatively easy for people who are either well-educated and/or financially secure.  

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CANADA FACTS

Canadian Dollar: steady currency not usually subject to major fluctuation. Influenced by the US Dollar.  In recent years the Canadian dollar has been worth between $0.67 and 0.75 US Dollars.

Economic climate: deliberately tailored to attract external investment. Cost of living is significantly lower than U.K. and  most of Europe, and similar to USA. Substantial national variation with Ontario, Alberta, and B.C. being the more productive Provinces.  Some cities, such as Victoria B.C., have many homes with rentable suites in the basement, providing profitable positive cash flow and capital appreciation.

               Click here for more information on Victoria

Capital Gains Tax: C.G.T. is applied to profit (gain) made on the sale of investment properties, it does not apply to a property in which you actually reside. C.G.T now only applies to 50% of the profit made. Tax credits are accrued for all maintenance, property and utility taxes (i.e. rates) on investment property and can be offset against C.G.T. or other taxable sources of income.

Popular Areas: Southern British Columbia (BC) on the west coast has the best demographics for investment property and for retirement because of its benign climate and outstanding natural beauty.  In addition, B.C. is the site of the 2010 Winter Olympics.  Southern Ontario, and Calgary and Edmonton in Alberta are rated highly for immigrants who want to work, because of their productive economies.  Montreal is popular with French-speaking immigrants and investors, and has a unique cosmopolitan flavour.  Opportunities abound right across the country.

Price ranges: Highly dependent on location.  Real estate is significantly more expensive in Victoria, Vancouver, Calgary, and Toronto compared with smaller cities.

Budgetary guide: Decent family homes can be purchased in the $250,000 to $400,000  (Canadian $) range in the larger cities, depending on location.  Smaller towns command prices in the $150,000 - $250,000 range.  The country is vast, and the range of prices correspondingly so!

Overseas Investors: There are essentially no barriers to foreign ownership of land, property, or businesses.

Service Fees: There are no Real Estate fees when buying property (the seller pays a typical 3 to 6% commission to the realtor), except for conveyancing and registration fees of less than $1,000.  Legal fees for overseas residents may be higher.  Townhouses and condominiums have a monthly maintenance fee.  Property management fees are very low (usually a percentage of rent, in the 5-7% range).

Mortgages: lenders are anxious to give loans, and go to extraordinary lengths to get your business.  Overseas investors and new immigrants usually have to pay a 35% down payment.  Canadian citizens and landed immigrants can get up to 100% financing (!)

Call Carol today to more information on Mortgage Brokers in Victoria.