Design district.There are three main reasons for the popularity of Canadian real estate. Statistics Canada released data on overseas buyers owning properties in Canada. 5% of all homes in Canada are owned by foreign buyers.Please Visit: Design district to Get Your VVIP Registration Today!
In fact, there is no more reassuring option for the rich who need to transfer wealth than to invest in Canadian homes. And we have reason to believe that if the epidemic in the past two years had not restricted the entry and exit of Canada and blocked the flow of people, more foreign buyers would have come to Canada to buy property. Statistics Canada points out that there are three main reasons why Canadian homes are popular with buyers:
First, the return on investment in the past five years is very high.
In recent years, house prices in Canada have soared, with increases of more than 20% in New Brunswick, Ontario, Prince Edward Island and Nova Scotia. House prices in the four provinces rose by 24.6%, 23.2%, 22.7% and 20.5% respectively, almost the same as the national increase of 18.6%. In addition, the vacancy rates in Vancouver and Toronto are only 0.4% and 1%, and the rental yield is as high as 45.5%. For real estate investors, the return on real estate investment is obvious. Although in the early days of the COVID-19 pandemic, fears of the epidemic and uncertainty about the future of the market slowed the real estate market. But since the summer of 2020, Canada’s real estate market has directly boomed, breaking countless records.
According to the Canadian Real Estate Association’s forecast for 2022, house prices in Canada as a whole are expected to grow by 7.6%, especially in Ontario by 11.5%. Although throughout the pandemic.
Second, Canada has a good tax policy for buying a house.
The best thing about buying a house in Canada is tax. Compared with other countries, the Canadian system encourages real estate investors.
At present, the mortgage rates of major Canadian banks have fallen to an all-time low. For example, RBC (Royal Bank of Canada) BMO (Bank of Montreal), HSBC and other current real estate loan rates are basically between 1.5% and 2.0%. This obviously reduces the cost of debt borne by Canadians, reduces the cost of buying a house, makes it easier to stimulate market demand and attract more buyers to enter the market.
In Canada, you buy a house with a low down payment and a high rent repayment. The first payment is usually about 30% and 35%, and the rest is on a bank loan. Due to the high rate of return on rental housing in Canada, the monthly rent can basically repay the loan amount.
In a low-interest environment, the purchasing power of the whole people is strong, so it is a good plan to sell and buy while the interest rate is low.
III. Few supporting documents are required for foreign buyers to purchase Canadian real estate.
Generally, if you buy a house in Canada, you can buy it with a maple card, or you can get a loan from a bank. If you are not a local, the down payment should be 30%, so it is possible to get a loan from the bank.
Canada does not have a property certificate, housing transactions are completed through lawyers, so buy a house to find a local lawyer to do the relevant legal documents and transfer procedures, or to find a real estate agent. When you buy a house, you only need to prepare the cashier’s check and personal documents for the down payment of the house to see the lawyer, and the lawyer will ask you to sign the documents. This day is called Completion Date, and the next day you can get the key to the house. The day you get the key is called Possession Date. And then the house officially belongs to you.
In fact, another important reason why Canadian housing is favored by buyers is that Canadian real estate is a permanent property right and there is no estate tax, which can be said to be a strong guarantee for the rich to pass on their wealth.
2021 is the largest year in Canadian history to approve immigrants, no matter what type, a total of more than 400000 new immigrants have been approved! According to the information disclosed by the Department of Immigration of Canada, the number of immigrants in Canada will continue to rise in the next few years, and new immigrants will definitely settle down and buy their own homes when they arrive in Po. Presumably, not only property prices in core areas such as Toronto and Vancouver will rise, but also housing prices in many small cities in surrounding or remote areas will also be driven up.