Where Should I Invest in Real Estate Market in Canada?
June 23, 2010 – 9:46 pm
Where should I invest in real estate market in Canada?
If you are looking to invest in real estate in Canada and hoping to make a profit, whether you live there or not, it is advisable to study the market first and perhaps attend a seminar to gather information on where and when to purchase land in Canada. If you are in the market with hopes of selling or are deciding whether you want to buy there is much to learn in order to be successful.
For every ten millionaires in Canada at least seven of them have made most of their money by investing in the real estate market in Canada. It is a matter of timing, buying in the right location, and grabbing up properties when the price is right.
What to buy? Condo, apartment, home, business?
Whatever your intentions you need to be prepared for all the little details involved in buying properties in Canada. There are some costs that will always be involved in real estate transactions like closing costs, legal fees, disbursements, land transfer fees, and property taxes. Additional charges may apply depending on the type of purchase and they include warranty fees, condominium maintenance costs, utility hookups, any repairs that are required as a contingency of the mortgage, and depending on the type of real estate involved there may be land related expenses. In the case of condo buying there is usually no land exchanged, but rather only the structure itself. Investing in a business requires a lot more legalese and it would be wise to seek out an attorney well versed in real estate and business taxes.
Buying a new home or an existing house?
In the case of new home purchases there are now some newer Canadian tax incentives in the form of rebates which can ease the sting of a new home purchase. The new HST or Harmonized Sales Tax simplifies the formula taxes are based on and makes it a straight thirteen percent instead of the previous five plus eight percent when considering both the GST and the PST system of taxes. Rebates amounting to as much as $24,000 for new homes purchased costing up to $400,000 are available plus there is no additional sales tax embedded within the sales price and this offers encouraging incentives to buy new homes today. The provincial mortgage filing tax is a fee for filing in the land registry that also includes transferring title of the property to the new owner and must be included in the total of the mortgage cost.
Determining where land will increase in value is a gamble
Depending on whether you plan on living in your real estate purchase or plan on renovating and reselling it you must decide first off if the property is worth what you are willing to give. Many foreclosures on the market today are in bad need of serious renovation and that can get costly. Having someone knowledgeable in costs of replacement with you can be helpful. Renovating bathrooms and kitchens bring in the most profit and may be done at reasonable cost if you can do most or all of the work yourself. Many people find this to be a fun and profitable venture. With economic trends being what they are today the southern province properties are currently going for bargain prices. Homes and condos in and around the Calgary area are being picked up at great prices, many of which are then resold. When you can scoop up a contemporary condo, newly renovated and spacious for not much over one fifty you know it is a buyers market.
Investing in land is usually a solid bet
Those who are seeking land to invest in can generally profit from their investment in Canada. After all, they’re not making it any more. Purchasing large acreage plots can create a huge profit when the land is subdivided and sold to a builder. Waiting might be the name of the game however in current economic times.
More Information:
For all of your real estate questions please call PropertySold.ca Inc. today at:
1-866-686-9929 and speak to a customer service representative. We have licensed real estate professionals on staff ready to take your call right now.
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