馃攳
Foreigner Buying Property in Toronto Area | How It Works - YouTube
Channel: The Sushma Home Selling Team
[0]
are you a foreign national looking to
buy a property in Canada and want to
[4]
learn how it works
stay tuned
[12]
hello and welcome back to my
[13]
channel I'm Sushma Khinvasara a real
estate agent with Century 21 Green
[18]
Realty in Toronto area. The rules around foreigners buying real estate in
[22]
Canada aren't related to citizenship. So
there's no restriction on how much
[27]
property or the type of property you can
purchase. However there is a foreign
[32]
buyers tax known as Non-resident
[34]
Speculation Tax or NRST. When a foreign
[38]
buyer purchases a residential property
in the Golden Horseshoe region which
[42]
includes the Greater Toronto Area, the
tax is levied. It is a 15% tax. The
[48]
Toronto real estate market has seen
strong price appreciation to a large
[53]
consumer demand and favourable economic
factors.
[56]
The strong confidence in our
[58]
real estate market is underlined by our
low interest rates, low Canadian dollar, a
[63]
strong regional economy and below-average unemployment rates. These are some
[69]
of the reasons why many foreign
investors choose to invest in our real
[73]
estate market. Does investing in Canada
give any special immigration privileges?
[78]
Owning in a property in Canada does not
give you any special immigration
[82]
privilege unless you have a work visa
student visa or permanent residence. You
[88]
can only stay in Canada for six months
or less at a time. Deposit structure in a
[93]
pre-construction property. For foreign
buyers of a pre-construction home
[97]
builders demand a different deposit
payment structure than for
[102]
domestic-buyers. Most builders ask
deposit of around 35% from foreign buyers
[108]
which is in line with the minimum down
payment requirements of a lender. What
[114]
does it cost to buy a property in Canada?
Typical down payment requirements for
[118]
foreign buyers are around 35% of the
value of the house. The closing costs of
[124]
a home are between 2 to 4 percent of the
purchase price. There are no additional
[129]
charges or fees for international buyers
except the foreign buyers tax that
[133]
applies in Toronto and Golden Horseshoe
area. 15% non-resident speculation tax. As
[140]
I said earlier foreign buyers have to
pay 15% tax which was introduced by
[145]
Ontario government in early 2017 to
restrict speculations and rapid grow in
[151]
the home prices in the Greater Golden
Horseshoe region which includes Greater
[156]
Toronto Area. There are some limited
exemptions and rebates available, for
[161]
example a foreigner becoming permanent
resident of Canada within four years of
[166]
buying property. Talk to a tax or a legal
expert about these. The rules and
[172]
regulations are on foreign investment in
Canada real estate are not exactly
[177]
clear-cut. It takes sitting down with the
professional adviser to understand the
[182]
ins and outs of buying and selling
property here in Canada otherwise you
[186]
you could face legal ramifications or
miss out on better opportunities.
[191]
Consider these factors. Residency or
citizenship requirements. There are
[195]
several legal structures available. The
good news is if you plan to invest in
[200]
Canadian real estate there are several
legal structures available. This
[205]
includes a general partnership, limited
partnership, co-ownership,
[209]
corporation, trusts, personal
ownership or a combination of the above
[215]
A variety of financing options are
available. Foreign investors can also get
[220]
access to loans from Canadian banks and
in some instances be able to use those
[225]
from foreign banks as well. Tax
advantages. Another benefit is that many
[231]
tax deductions that are available when
investing in a property in Canada. For
[235]
example any interest you pay on money
borrowed to invest in real estate is
[241]
tax deductible if the property is used
to generate income. Countries with tax
[246]
agreements with Canada such as the USA
can also avoid double tax burdens. If you
[251]
understand the Canadian tax laws and how
they apply to real estate investments
[256]
owning can be quite profitable. In short
if you are a foreign buyer considering
[261]
investing in Canada there are some
added requirements such as extra
[267]
downpayment, speculation tax and rebates
which need to be considered beforehand.
[273]
Many of the benefits that are available
to a Canadian resident are also
[278]
available to a foreign buyer. If you
found this information useful please hit
[283]
the like button and consider sharing
this video. Also please subscribe to my
[288]
channel and ring the bell to get
notified when a new video is published
[292]
here. Thanks for watching.
[293]
See you next time
Most Recent Videos:
You can go back to the homepage right here: Homepage