They say the grass isn’t always greener on the other side but that doesn’t hold true for foreign investors in Canadian real estate. Chinese, European and Americans are still investing heavily in Canadian properties – and for good reason – there truly has never been a better time for Americans (or anyone for that matter) to invest in Canada.
If you’re on the fence about jumping into Canadian real estate, consider these 5 points, eh.
1. Canada is desirable.
Firstly, Canada is ranked as one of the most sought after places to live and has been for decades. There are always people looking to relocate into or within the country and it has a wide variety of desirable climates, amenities, views and more. Whether you’re looking for a busy metropolis, affordable real estate on the prairies, the stunning Rocky Mountains or the laid back lifestyle on the east coast, Canada has a ton to offer in every location with many people interested in living there.
2. Get more for your money.
The Canadian dollar is at an all time low in comparison to the US dollar. Take advantage of the price difference to leave more money in your pocket by paying your monthly fees and purchase price in Canadian funds. Canadian banks finance to non-resident investors at 65% of the purchase price with 35% down. Should you need a mortgage be aware of all the closing costs associated with purchasing a Canadian property including: purchase price, property transfer tax, bank appraisal fees (if any), inspection costs, insurance costs, and closing legal fees.
3. No red tape.
Canada welcomes foreign investors with open arms. Non-residents have the same rights to property ownership as Canadian residents and citizens do. There are no restrictions on the amount of properties you can own or the types of real estate you can purchase.
4. Buyers market.
Home prices in Canada have been dropping, even in large cities with tons of inventory on the market. With the economic struggles in Canada many homeowners are selling properties for a substantially lower amount to avoid foreclosure or bankruptcy. If you’re an investor looking to purchase properties in cash Canada presents an ideal market. With such a slow turnaround on the sale of properties homeowners are becoming desperate to sell and are increasingly likely to accept your cash offers.
5. Increase in need for rental properties.
There are a number of factors working in favor of owning a rental property in Canada. With so many homeowners facing bankruptcy, and foreclosure a high volume of homeowners are now seeking rental properties. On top of that, Canada is home to a number of large colleges and universities. With not near enough on campus housing there are always students seeking, clean and reliable housing. Canada has seen an increase in immigrants, many of whom do not qualify for mortgages when they first arrive to the country. Because of the new mortgage rules, we will see less home ownership in the future as a large number of people will no longer qualify to own a home of their own.
To get a jump start on building your Canadian property investment portfolio join me in my next 90 Days to 5K coaching program. Register today to take advantage of my limited time discounted pricing and major bonuses. www.90daysto5k.ca
TOP 35 Places to buy real estate in Canada for 2016:
If you aren’t familiar with the Canadian Market, this list and web resource is a great help. Edna Keep works and lives In Regina, SK (#6 on the list) so if you have any questions about any of these areas, just reach out and she can connect you to a REI specialist in that city.