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Investors in Canada That Should Opt for Real Estate
Due to the year’s nearing end, the majority of Canadians are starting to debate on the many investment opportunities. They are likely concerned about the best investment that can provide them of the best returns in the coming months.
Based on the report of Tri-City News, Canadians should consider investing on real estate properties. In fact, this is the best-ever decision to make. It was also said that that lower interest rates are the reason for the purchase of investors on real estate properties. Most of the experts predicted mortgage rates will remain low. Investors should grab the time in taking out their loans. The variable rates are now available in the area of Canada. These rates start as low as two point eight percent.
The central Bank of Canada also said that the lending rate will still remain unchanged. Even though the variable rates are still low, there is still a difference between the fixed rates and adjustable rates. The difference is only smaller than the usual. This offers them less incentive in buying low variable loans than safe fixed mortgages.
According to the report, choosing a thriving region is also necessary in starting a real estate investment. Another survey suggested that the standard home price rose to six point five percent in the month of September. The prices jumped higher in Toronto and Vancouver. There is also a sudden increase of ten point five percent and eight point nine percent.
For the many interested investors, they must engage in a profitable investment on real estate properties. They will not be required of providing citizen or residency requirements for owning and buying property in Canada. The residence can be occupied in Canada on a short-term basis. However, they need to comply to the immigration requirements. This is prior to their decision of staying or being permanent residents.
For the non-residents, they have the opportunity of owning rental properties in Canada. They must first file their yearly tax returns in the revenue agency.
In buying properties, they are obliged of paying transfer taxes that depends from one province to another. The tax is at around one percent on $200,000; 2% for the balance. Other exemptions also apply if this is their first time of purchasing the properties.
Municipalities are also levying property taxes according on their property values. With the values, the market values are reflected. Taxes and school taxes are included as part of the municipal taxes. The information on this tax is readily available.
For newer home purchases, these are usually subjected to GST. The partial rebate is obtained for builder-renovated or new homes. This is obtained if you will live inside the home. Actually, GST does not really apply to all resale homes.
There are many advantages that can be obtained by Canadians such as the family tax benefits. Apart from it, the investors may also benefit more from investing in the real estate in Canada! This is simply true because many have tried investing in Canadian real estate market and they can attest to it.
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