Buying real estate abroad is something that many people are interested in doing, especially when the country’s currency exchange rate is favourable. If you are an international home buyer, you will need to take care to work with a realtor who is very familiar with the local market so that your purchase follows all the applicable laws and goes smoothly.
Why Buy an International Property?
Purchasing an international home can be a great investment opportunity. Since Canada is considered a safe place to purchase property, you will likely be able to turn a good profit. Before purchasing a property though, you will need to take in to account what the expected performance of the property will be, how long it will take you to turn a good profit and what the economic forecast is projected to be.
The first thing you need to do is find out if you will be able to rent your property out and how often you can do so (e.g. weekly, monthly or annually). In some cases, you might only be allowed to rent after you’ve owned the property for two years – this is often the case with condos. I’ve found that some people purchase international property in the cities that their children are attending college or university in. This is a great way to help your child save money and is an ideal way to find tenants – the friends and peers that your children know and trust.
Whether you have friends and family here or your children are going to school nearby, purchasing a property in Canada can be a great place to have a vacation home. Especially if you are looking to purchase a vacation home in Cambridge or Kitchener-Waterloo, you will be less than an hour’s drive to major Canadian cities like Toronto and less than 8 hours away from other cities like Ottawa and Montreal. Southwestern Ontario is also close to several American cities – you’ll be able to drive to New York City, Chicago or Boston should you choose to travel from your vacation home.
Some of the biggest challenges of owning an international property include finding a property management company you can trust and understanding the laws that surround the buying process in Canada. Keep in mind that there are estate taxes in some parts of Canada and that you might need to file an income tax return in Canada if you are making a profit from rental income.
I have experience working with international buyers looking to purchase property in Canada, particularly in the Cambridge area and can help you work through these challenges.
Please contact me today for more information and to find out how to get started.Posted by Greg Dewar on