Canada is the best place in the world to do business. Property prices in Toronto and real estate investing in Mississauga are both affordable by international standards.
First time buyers, users, real estate investors and flippers can continue to flock to Downtown Toronto and Mississauga.
In Toronto, prime condo building prices start at $550 per square feet (resale condominiums) and go up to $700 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 Downtown Mississauga, resale condos in prime buildings start at $350 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.
Tenant protection laws are strong and somewhat pro tenant in Ontario. However, the tenant selection and due diligence on part of the real estate agents can eliminate bad apples before entering into a tenancy contract.
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 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. So when it comes to Mississauga real estate investing or property investment in Toronto, the right way to know more is by consulting Amit.
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 for Mississauga real estate investing or property investment in Toronto. 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.
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.
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.
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.
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.
Legal costs to buy an investment property in Toronto Mississauga, including land transfer taxes, lawyer fees and other closing costs can amount to anywhere 3% to 5% of purchase price.
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.
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.
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.
If you are thinking on investing in a condominium in Downtown Toronto, Mississauga, Square One area, Burlington, Oakville, Milton and Brampton, the market in very much landlord friendly.
Contact Amit to know more about opportunities out there, Mississauga real estate investing and market conditions, rental rates, landlord tenant laws, best locations and the right condominiums or projects to invest in.
Amit can put you in touch with bankers, real estate lawyers and tax accountants who can help make your Toronto Mississauga real estate investing a worthwhile experience.