Currency: steady currency not usually subject to major fluctuation. Influenced by the US Dollar. In recent years the Canadian dollar has been worth between $0.67 and 0.75 US Dollars.
Economic climate: deliberately tailored to attract external investment. Cost of living is significantly lower than U.K. and most of Europe, and similar to USA. Substantial national variation with Ontario, Alberta, and B.C. being the more productive Provinces. Some cities, such as Victoria B.C., have many homes with rentable suites in the basement, providing profitable positive cash flow and capital appreciation.
Capital Gains Tax: C.G.T. is applied to profit (gain) made on the sale of investment properties, it does not apply to a property in which you actually reside. C.G.T now only applies to 50% of the profit made. Tax credits are accrued for all maintenance, property and utility taxes (i.e. rates) on investment property and can be offset against C.G.T. or other taxable sources of income.
Popular Areas: Southern British Columbia (BC) on the west coast has the best demographics for investment property and for retirement because of its benign climate and outstanding natural beauty. Southern Ontario, and Calgary and Edmonton in Alberta are rated highly for immigrants who want to work, because of their productive economies. Montreal is popular with French-speaking immigrants and investors, and has a unique cosmopolitan flavour. Opportunities abound right across the country.
Price ranges: Highly dependent on location. Real estate is significantly more expensive in Victoria, Vancouver, Calgary, and Toronto compared with smaller cities.
Budgetary guide: Decent family homes can be purchased in the $250,000 - $400,000 (Canadian $) range in the larger cities, depending on location. Smaller towns command prices in the $150,000 - $250,000 range. The country is vast, and the range of prices correspondingly so!
Overseas Investors: There are essentially no barriers to foreign ownership of land, property, or businesses.
Service Fees: There are no Real Estate fees when buying property (the seller pays a typical 3 to 6% commission to the realtor), except for conveyancing and registration fees of less than $1,000. Legal fees for overseas residents may be hogher. Townhouses and condominiums have a monthly maintenance fee. Property management fees are very low (usually a percentage of rent, in the 5-7% range).
Mortgages: lenders are anxious to give loans, and go to extraordinary lengths to get your business. Overseas investors and new immigrants usually have to pay a 35% down payment. Canadian citizens and landed immigrants can get up to 100% financing (!)
Information: Web access www.johnfrancis.net. Canadian Information site. www.cpta.org. Canadian Property Tax Association. www.canadaonline.about.com. Property Insurance information site. www.fxhistory.com Currency Exchange Site.
Related site: http://www.cpta.org
