Toronto Real Estate Investment
Real Estate Investment opportunities for local & non-resident investors in Toronto & Area
Canada is the best place in the world to do business. Real estate investors continue to flock to Toronto and GTA from all over the world.
In Toronto, prime high rise condo building prices start at $700 per square feet (resale condominiums) and go up to $900 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. Average price of a detached home (low rise) in Toronto is 1.3 million as of Oct 2016 Toronto real estate market report.
In comparison, Downtown Mississauga, resale high rise condos in prime buildings start at $450 per square feet and go up to $650 per square foot for pre-construction/new builder luxury condominiums. Toronto & Mississauga offer a safe real estate investment for investors looking for a second or third home in two of North America’s most diversified cities
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. We can also help you with residential and commercial real estate investing in Mississauga and other parts of the GTA.
Contact us for all your real estate investment needs in Toronto, Mississauga and neighbouring towns and cities, Team Kalia 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. Cost of living in Canada is also lower than 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 is a number of criteria to be met. To find out more please visit the Government of Canada web site.
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.
We can help you with both residential and investment real estate 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.
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. Foerign buyers pay 15% Tax. We 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. We work with many lenders when it comes to newcomers to Canada or Non Resident buyers. Please contact us and we will put you in touch with seasoned professionals. 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. 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.
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 other Toronto real estate investment tax related questions.
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. Team Kalia has helped many non-resident real estate investors buy and manage properties in Mississauga and Toronto area.
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. $75,000 to $100,000 less than a comparable condo in Downtown Toronto. The rent to 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 $25K to $35K in cash. One also pays almost double land transfer tax in Toronto in comparison to Mississauga.
Contact Team Kalia for Your Toronto Real Estate Investment Needs
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