Last Updated on Dec 19, 2019 by James W
As residents in Toronto and Vancouver will tell you, the Canadian real estate market does not discriminate against foreigner buyers. In fact, experts have determined that foreign investors have helped make a few local real estate markets into the hotspots that they are today.
According to studies, even if there are only 5% of properties in Canada owned by foreigners, they’re worth a lot more than what residents own. It’s said that their purchases are driving the prices higher than ever. The numbers are staggering that locals are continuously asking for the government to do something about it.
Vancouver did do something about it by imposing a 15% tax on foreign buyers. Additional taxes are slated to be implemented as well.
However, these don’t seem to deter foreign investors from taking advantage of the weak Canadian dollar to get a good real estate investment. Besides, the country is beautiful, the people are well-known to be nice, and a real estate investment is always seen as a solid way to take care of one’s finances. So it really makes sense that a lot of people will continue to want to invest in Canadian real estate.
If you’re a non-Canadian who is thinking of doing the same, you might be wondering how you can go about it. Here are a few key points that might help you buy a property in Canada even if you’re not there to handle the transaction:
1. The process for non-residents is quite similar for residents.
Get acquainted with how the local process is for residents and you’ll be able to get a good grasp of how purchasing properties in the country work.
2. You should look for a realtor who is well-versed in foreign ownership.
Hiring a realtor is a must if you’re a foreign buyer in Canada because they can make the process way easier for you. However, you have to be very careful in who to trust. They have to be from a reputable firm. Most experts suggest asking other foreign investors for recommendations.
Aside from a good reputation, they should also know how to handle foreign buyers. This will make the process significantly simpler for you as they’ll be able to expertly assist you in your transactions.
3. Work on your budget.
This is where the most significant differences between resident buyers and non-resident buyers come in. If you’re a foreign investor, the lending process will be trickier and you have more things to pay for. Taxes, for one, would be higher, as mentioned above. You’ll also be required to pay a bigger down payment. This is why it’s crucial that you have a good budget if you want to invest in a real estate property in Canada.
4. Transfer your funds to a Canadian bank even before starting your search.
This will make the process smoother and faster for you, so make sure to have your funds ready even before you start looking at houses.
These are just some of the most basic things you need to do if you want to become a foreign investor in Canada. Keep these in mind and make sure to do more research so you can start your quest to becoming a foreign investor in this nation’s booming real estate industry.
