How to buy a house or apartment in Canada. Information is helpful for people planning to buy property in Canada.
Reasons to invest in Canada.
- Canada has always been a dream of emigrants and a dream of people who planned to go to America. In recent years, the number of people interested in investing in foreign property in Canada is also increasing. Also, some investors are choosing Canada as their second home overseas.
- Spectacular scenery, stunning landscapes, wildlife, high quality of life, political stability of the country, and general prosperity are the main reasons investors choose Canada for their second home overseas.
- Easy and quick travel overseas is another reason to consider Canada a capital investment destination. Also, low-cost airlines are starting to arrive in Canada.
- The Canadian real estate market has withstood the global crisis, albeit with minor bumps and turbulence during the crisis. Still, relative to other countries and the US, the Canadian real estate market has remained unshaken.
- Canadian real estate is among the cheaper in comparison to, e.g., Great Britain (big cities), and therefore real estate in Canada remains affordable,
- Also, the Canadian real estate market is lovely for people who plan to permanently emigrate to Canada.
- The Canadian real estate market has withstood the crisis, and according to industry experts, real estate prices have not changed much during the global crisis. All this speaks in favor of profitable and long-term investment in this country.
An excellent location to buy property in Canada
Over the past several decades, Popole has emigrated to Canada to various parts of the country in large numbers. For those deciding to buy a property in Canada, distance and travel time to multiple aspects of Canada will be significant factors. If you choose to buy a house in Montreal or Toronto, you have to reckon with a shorter travel time from Europe across the Atlantic. On the other hand, buying a home in Vancouver or Calgary, we have to consider additional flight hours and a different time zone.
Where is it cheaper vs. where is it more expensive in Canada
Traditionally, Montreal is among the most affordable Canadian cities to buy real estate, although, in our opinion, it is the friendliest city in eastern Canada. However, the statistics back this up. Montreal is an amiable bilingual city.
It is generally cheaper than the west coast, given the same property type. Real estate prices are steadily increasing in Montreal year after year, so this is definitely the place to consider when buying investment property in Canada. Montreal has plenty to offer, and any will feel somewhat at home there.
The beautiful city, excellent services, shopping, malls, schools, universities, and the surrounding area with its close proximity to ski slopes, also offer a lot for both the investor and the person looking to invest in a house or apartment for rent in Montreal.
Here you can generate excellent and steady cash flow. The border with the United States is very close, just 40 minutes by car from Montreal. New York and Boston are within 6h drive or 1h plane ride. There are good air connections to Europe. For example, there are several flights a day to London from Montreal.
The rental market and the instant possibility to rent a purchased property open up good opportunities for investors. Toronto can be a good option when it comes to buying for rent. Also, Montreal is an excellent option to buy a rental property.
The westernmost province. It is one of the most beautiful places in all of Canada. Fantastic scenery, great mountains, lakes, warm springs, good climate, and friendly people make this place worth considering.
However, Vancouver remains the most expensive city in Canada when considering "residential" real estate prices. As we know, the city hosted the 2010 Winter Olympics and Whistler's city. Communication with Europe is not the worst either. There are daily flights between London and Vancouver.
The Rocky Mountains
They are beautiful places, many people who have visited this place while vacationing in Canada fall in love with the local locations and romantic scenery. Spectacular views, wonderful nature, and breathtaking landscapes. However, this place is not cheap, and most of the properties here are located in national park areas, which introduces some restrictions. Some investors refrain from buying properties in this area.
An excellent place to buy. A place definitely worth considering is Canmore in the province of Alberta. It is a town near Banff and Kananaskis parks and only a 1h drive from the international airport in Calgary (9h flights to London - there are direct flights). Canmore has a great climate, excellent infrastructure, and an excellent outlook for the future, and not surprisingly, since 1988, when Calgary hosted the Winter Olympics, Canmore has doubled its population.
Real estate prices in Canmore are relatively low but steadily rising. Also, real estate prices in Calgary are increasing. It is a good market for investment from the point of view of an investor, not only from abroad or from other nations, having cash and an idea for a good investment in Canada.
Canada tourist destinations
Canada is the 10th most popular and most visited country globally! But the country still has vast potential. Knowing this, the Canadian government has invested vast sums of money in tourism, especially in the east of the country, which is relatively undeveloped until now. This part of the country has enormous potential as a tourist destination.
As a result, tourist resorts are constantly being developed. A good portion is ski resorts in eastern Canada. Tired of the high prices of skis in Europe and crowded slopes, they are looking for good skis overseas, with the British leading the way. And most of Canada's resorts are open in the winter and all year round, offering vacation spots of all kinds, including family-oriented recreation.
Here are offers to buy property in such resorts with a rental guarantee offered by the developer or a company involved in the rental after the building is put into use. It is worth looking for such sales offers and seeing what percentage such an institution offers to a potential investor.
Rules for buying property by a foreign national in Canada
The laws and regulations regarding the purchase of property by a foreigner differ in different states of Canada. In the provinces: of British Columbia, New Brunswick, Newfoundland, Nova Scotia, Ontario, and Quebec, there are no restrictions on the purchase of a house or apartment by a foreigner if you stay in Canada for up to 6 months.
However, in Banff, which is located within a national park, only businesses and park employees can buy a property. Even buying is only a leasehold for 42 years with an option to renew the lease/leasehold. Each Canadian province has different limits on the size and density of development.
Every person must register with a licensed real estate agent if they are thinking of buying property in Canada. The exception to this is when buying a property new from a developer.
Learn about the process of buying property in Canada.
The Canadian real estate market is very different from the European one and is similar to the American real estate buying process. The title transfer looks very different.
All Canadian real estate agents have access to what is known as a multiple listing, which is the inventory of properties currently on the market in a particular city, area, or province. Typically, an agent has access to all the properties in their city of operation. The first step is to find your own agent.
There should be no problem here. Lots of real estate agents in Canada are of descent. Especially in Toronto or Mississauga, there are a lot of real estate agents. You should have no problem finding a realtor in Canada who will represent you, find you a property, and complete the transaction. The seller pays both the selling agent's and the buyer's commission.
After finding the property, your agent will present you with an Offer to Purchase, presented along with a deposit for the property. The deposit IS REFUNDABLE if the transaction does not go through.
Once both parties have come to an agreement and agreed on a price, both buyer and seller will sign an Offer to Purchase Agreement (sometimes there will be some conditions, such as the bank accepting a mortgage for the buyer).
What is the average cost of buying an apartment?
When it comes to apartments, the market is a bit different. Of course, the prices of apartments depend on the neighborhood, the building, etc. There are old buildings, 30 years old or more, or new glass condominiums (i.e., an owner-occupied apartment in a multi-unit building with undivided co-ownership of common elements, such as hallways, stairs, elevators, lawns, sidewalks, parking, pool, gym, etc.), where there is security, pool, gym, etc.
Old buildings have friendly big apartments, but there are not all kinds of conveniences. Because of the construction, you can not have a dishwasher or washing machine in the apartment. New buildings look beautiful outside and have many amenities, but the apartments are small. On top of that, there is the so-called Maintenance Fee, each owner of an apartment must pay a monthly fee to the corporation, which includes insurance of the building, light, electricity, and gas.
The amount depends on the structure, size of the apartment, etc. On average, this fee for a two-room apartment is between $400 and-900 per month, not including tax and loan repayment.