There are many reasons to invest in real estate abroad, especially when it comes to Canada. As an immigrant and real estate investment, this topic is at the crux of my identity – and I’m here to tell you, as One of the Top 10 Brokers in the World – there’s nowhere else I’d rather invest.
The Canadian real estate market is a very attractive sector for economic activity, and it can be a goldmine. But making an investment and becoming a property owner isn’t easy. That’s why I follow my motto to have a plan… because when you plan it out, you’re bound to succeed.
There are many obstacles that can come up with an investment property. You may experience long rental vacations or months of unpaid bills. This could lower your rental yield and negatively affect your first investment. But there is always a way. Buying a property in the GTA is smart in terms of remuneration – and with the right strategy, you can maximize your wealth and minimize your risks.
1. Diversify Your Investments
This is a fundamental pillar of investment philosophy and entrepreneurial success. Not only does it minimize risk, but it also ensures a net return in case real estate prices drop-in certain locations. I advise my clients to consider geo-diversifying their property ownership using this leveraging technique.
Leveraging is a creative way to source funding, allowing you to make high ROI’s by taking on additional debt. It’s a great option for developers who want to make investments and build long-term. Canada has a particularly effective leverage effect that allows investors to invest more with refinancing (which is replacing an existing mortgage with a new loan).
2. Access Tax Advantages
Tax advantages are one of the biggest reasons to invest in real estate abroad. Canada offers:
· Amortization of the purchase price of 4% per year.
· An attractive tax credit system.
· Light taxation of property income.
· The possibility for foreigners to benefit from local financing.
· Exemption from social security contributions.
· Tax flexibility gives the investor the possibility to make a real estate investment with significant net returns.
· A steadily growing real estate market
With the market growing year on year, Canada is a great economic destination to invest in and build your real estate portfolio long-term.
3. Affordable, Attractive Prices
The price per square meter in Canada is affordable, depending on the real estate sector you want to invest in. The market is transparent and free and with my insight and expertise, you can have access to all the information you need to make an investment and generate income.
For foreign investors in particular, owning or investing in an old or new real estate property, doesn’t come with special obligations on foreign investors. The law states that foreign landlords are subject only to the same obligations as a Canadian and so you’re free of complicated and tricky laws in that regard. Canada is a growing economy, with a very low unemployment rate and a booming opportunity for growth if you invest in real estate here.
4. High Demand for Rentals
The demand for rental properties in the GTA is soaring. With a wide range of universities and higher education institutions, Canada is also a hub for students looking for rental accommodations – a fact that continues to grow and is stable as time goes on. So, you’ll always find someone to rent out your property!
Final Thoughts
If you’re looking to invest in real estate abroad, make sure Canada is at the very top of your list. With its’ economic stability and growth potential, as well as attractive tax system and high demand in a thriving real estate sector, this is your next opportunity. I’d be happy to share my story and talk more about what opportunities are ahead of you and show you how I can help you strategize to maximize and increase your wealth the right way.
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