What is the cost of living in Ontario?
Relative to Western Europe, UAE and other oil rich Middle Eastern countries the cost of living in Ontario is lower. It is about the same as the United States. International visitors are pleasantly surprised at the cost of fresh produce in this people friendly and multi-cultural Toronto city.
Can I apply for permanent residency?
Yes, you can apply for permanent residency. There are a number of criteria to be met.
Are there any restrictions on home ownership for non-residents?
No, there are no restrictions. As a non-resident you may own a home in Ontario. Withholding tax is payable, however, on earned income (such as rent) or sale proceeds in accordance with the terms of the tax treaty between Canada and the respective non-resident country.
As a non-resident can I work in Ontario?
To work in Ontario you are required to have a Social Insurance Number (SIN). To find out more please visit the Government of Canada web site.
What types of real estate investments do you offer?
Amit can help you with two types of residential real estate investments (single homes, townhouses, condo apartments, multi residential apartment complexes) in Downtown Toronto and Mississauga. Off-Plan property (pre-Construction); to be ready in couple of months or years (3-4 years) from the date of purchase, and resale property; ready to move in investment property bought for the purpose of rental income. Some investors have the opportunity to enjoy a beautiful holiday home when the property is not occupied, while watching its value appreciate at a steady pace. See GTA home prices from 1969 to 2012. Depending on the individual investor's goals, each property can offer return on investment (ROI) and long term growth potential.
What taxes are payable on the property purchase and at what rate?
Newly constructed homes are subject to Harmonized Services Tax (HST). Land transfer tax and Toronto Land Transfer Tax
(for Toronto City only) is also payable when buying property in Ontario. Amit will put you in touch with professional accountants and tax advisors.
How much down payment do I need to pay?
As a non-resident of Canada, you can be asked to pay 35 percent or more of purchase price as down payment. Every bank has its own set of policies. Its always prudent to speak to the lending institution and get pre-approved for mortgage. The balance of purchase price can be borrowed from financial institution against the mortgage of your property. The rate to borrow is same as any other Canadian or permanent resident.
What other costs will I pay?
Apart for your monthly mortgage payments, you are liable to pay monthly condominium fees (approx. $0.55 cents per square feet, say for a 1000 square feet apartment, you would pay $550.00 per month), property management costs; if you choose to hire a professional property management company, and your property taxes. Most of the utilities are included in your condominium fees, and/or are payable by tenants, if applicable.
How much are annual property tax?
Property taxes are approximately 1% of property's current value assessment in Downtown Toronto and Mississauga.
What taxes will I pay if I plan to sell my property?
If the property was used as a principal residence, the owners are exempt from payment of capital tax. If the owner is a non-resident, the sale proceeds will be subject to withholding tax. This not very complicated, your tax advisor and lawyer will be able to sort this out for you.
Can I lease my property?
Yes. You can lease your condo to a qualified tenant; someone with good credit, job history and references, for one year or shorter term. Amit can help you professionally manage your property.
What tax is levied on rental income?
Rental income is taxed under Canadian law. Rental expenses (condo fees, interest portion of mortgage, property taxes, property management fees, real estate fees, repairs etc.) can reduced from your gross rental income. Your tax advisor can provide more information.
How easy is it to repatriate any gains or income from the property?
Providing that any withholding tax and certificates are remitted to Revenue Canada there are no other requirements needed to satisfy the tax authorities.
What are the tax implications if I buy a property in a company name?
A non-resident corporation must file a corporate income tax return with Revenue Canada if the corporation carried out business in Canada or disposed of a taxable Canadian property in the tax year. You should consult with your tax advisor and lawyer for exact details.
Is there any legal protection for foreign investors?
Foreign investors are provided the same legal protection as any Canadian citizen.
Do you know what the legal costs will amount to?
Legal costs to buy an investment property in Toronto Mississauga, including land transfer taxes, lawyer fees and other closing costs can amount to anywhere 2% to 5% of purchase price.
How many days do I need to be in Toronto to buy an investment property?
The process can be summed up in three easy steps. First is your mortgage approval (say 3-4 days) followed with transfer of funds, as per FINTRAC prevailing laws. Second step, is finding the property. Depending upon your investment goals and neighbourhood choice, it can take about one week to get you the right property. The last step, is meeting with a real estate lawyer, an accountant and a property management company. Your mortgage approval process (as above) can start even before your arrive in Canada. Amit has experience in helping real estate investors find the right properties. You may contact Amit, if you are planning to buy your investment condo in Downtown Mississauga or Toronto.
Can I buy property in my child's name, if he/she is an international student studying in Canada?
Yes, you can buy a property in your child's name if he/ she is 18 years or older. You may also buy a property in joint names, subject to bank’s approval. If you/ your child is a permanent resident of Canada, you can qualify for first time buyer rebates, subject to other conditions.
What is a better investment, Mississauga Condos or Downtown Toronto Condos?
In my opinion, Mississauga offers lower price and better return for investors. Downtown Mississauga is a growing condo hub and a happening place. You can read more on my blog about Downtown Toronto vs. Downtown Mississauga condo investing.
Contact MATT when buying real estate investment in Mississauga Toronto!
If you are thinking to invest in a condominium in Downtown Toronto, West Mississauga or Mississauga Square One area, the market in very much landlord friendly. Contact me to find out about opportunities out there, real estate market investment market conditions, rental rates, landlord tenant laws, best locations and the right condominiums or projects to invest in. I can put you in touch with bankers, real estate lawyers and tax accountants who can help make your Toronto Mississauga real estate investment a worthwhile experience.