Toronto Real Estate Investment
Investment opportunities for local and non-resident investors in Toronto
Canada is the best place in the world to do business. Condo prices in Toronto are considered affordable by international standards. Users and real estate investors continue to flock to Downtown Toronto Condo market.
In Toronto, prime condo building prices start at $650 per square feet (resale condominiums) and go up to $800 per square foot (pre-construction/new builder luxury condominiums). The price is even higher for the super luxury buildings - which may include projects like the Four Seasons residences, One Bloor Street and The Trump Tower.
In comparison, Downtown Mississauga, resale condos in prime buildings start at $375 per square feet and go up to $450 per square foot for pre-construction/new builder luxury condominiums.
Toronto & Mississauga offer a safe real estate investment haven for international investors looking for a second or third home in North America’s most diversified city. Real estate investing in Mississauga and Downtown Toronto come from both domestic as well as international investors, many of who come from countries such as India, Iran, Pakistan, UK, UAE, China and Russia.
When comparing gross rental yield; i.e.; the landlord's return on his investment before taxes, maintenance fees and other costs expressed as a percentage of purchase price, investing in Mississauga's condo market may make better sense than Toronto's condo market.
In the section below, you will learn about Toronto Real Estate Investment opportunities as a non-resident. Amit can also help you with residential and commercial real estate investing in Mississauga and other parts of the GTA.
Contact Amit for all your real estate investment needs in Toronto, Mississauga and neighbouring towns and cities, Amit can put you in touch with bankers, real estate lawyers and tax accountants who can help make your real estate investment a worthwhile experience.
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.
Yes, you can apply for permanent residency. There are a number of criteria to be met. Once the tenants move in, the landlord and tenant take care of day to day issues between themselves. This helps landlords save costs on hiring a professional management company, and helps increase their cash flow.
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.
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.
Amit can help you with both residential and commercial real estate investments in Toronto, Mississauga and other parts of the GTA. Residential real estate includes single detached homes, townhouses, condo apartments, multi-residential apartment complexes, custom or rebuild homes. Commercial real estate options include sale of business opportunities like: gas stations, food franchises, or vacant land and so much more. Amit is backed by a senior and seasoned Commercial Realtor, so rest assured that you are in good hands.
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.
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. It’s 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.
In addition to the one time buying cost, you will pay monthly costs like: property taxes, mortgage payments,condominium fees (if applicable), property insurance and property management costs if you choose to hire a professional property management company. Most of the utilities are included in your condominium fees, and/or are payable by tenants, if applicable. In Commercial real estate, taxes, maintenance, insurance and utilities are paid by the tenant in most of the cases.
How much are annual property tax?
Residential property taxes are approximately 1% of property's current value assessment in Downtown Toronto and Mississauga. Commercial property taxes are approximately 2-3%.
In case of residential properties, 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 is not very complicated, your tax advisor and lawyer will be able to sort this out for you.
Yes, you can lease your residential or commercial property to a qualified tenant.
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 reduce your gross rental income. Your tax advisor can provide more information on rental and real estate investing in Mississauga and Toronto.
Providing that any withholding tax and certificates are remitted to Revenue Canada there are no other requirements needed to satisfy the tax authorities.
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.
Foreign investors are provided the same legal protection as any Canadian citizen.
Canadian banks and lawyers require you to be physical present at the time of signing mortgage documents. The non-resident buying process can be summed up in three easy steps. First step is your mortgage approval (say 3-4 days) followed with transfer of funds, as per ;FINTRAC prevailing laws. This process can be started even before you come to Canada. 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. Third and the last step, is meeting with a real estate lawyer, an accountant and a property management company. Amit has a lot of experience in helping non-resident real estate investors buy properties in the GTA.
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.
Downtown Mississauga is a growing condo hub and a happening place. Price of a condo in Mississauga is approximate. $60,000 to $80,000 less than a comparable condo in Downtown Toronto. The rent to selling price ratio is slightly more favourable in Mississauga. Based on above price difference, an investor looking to buy in Downtown TO with 35% down payment will have to come up with an extra $20K to $30K in cash. One also pays almost double land transfer tax in Toronto in comparison to Mississauga.
Contact Amit for Your Toronto Real Estate Investment Needs
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