What To Consider While Applying For Real Estate Investment As An Immigrant

Did you know that 1 in 5 Canadian homes are owned by foreigners?

Real estate is a profitable option for investment in Canada. 2020 showed Canadian real estate markets had great investment opportunities. The life included warehouses, apartments, senior housing, etc. Especially in areas like Toronto, real estate investment opportunities were incredible.

2020 was a growth year for real estate in Canada as it showed 2.1% growth (in 2019, the growth rate was 0.5%). Hence, invest in real estate before the prices turn back to their normal growth percentage. 

Immigrants And The Real Estate Investment

What Many Immigrants Miss In The Real Estate Investment Process

1. Financing

Toronto has one of the most powerful housing markets. There is frequent fluctuation in property prices and sales. Hence as an immigrant, you need to have a prior preparation i.e., keep your funds ready in Canadian Bank so you can put them to use anytime. 

What many immigrants miss in this process is to deposit their funds in the Canadian bank before investing in real estate. Remember, the exchange rates change and there are many delays in transferring money from your country to Canada that could ruin your real estate investment plan.

When you invest in Toronto’s real estate, you are required to provide 5%-10% of the deposit within 24 hours. This could be in the form of Canadian dollars: bank draft, any certified cheque, or money order. 

2.         A Detailed Province Research

Investing requires a lot of your finances, hence, prior research is important. As an immigrant, you need to consider factors like, economy, affordability, or market development.

What many immigrants miss is to research about the provinces and their immigrant ownerships.

 The main aim of real estate investment must be positive cash flow. Cities like Toronto usually have high-bid prices and investing in them could be a little tricky for immigrants. Before investing your money, make sure you go a quick scan of the provinces. 

Here is a list of provinces with high immigrant ownerships:

Each area has different regulations for tax and mortgages, make sure you do a detailed research before investing in real estate.

3.         Insurance

When you apply for a mortgage, lenders will ask for your present proof of homeowner’s insurance. Since you are investing a huge sum, you will be needing financial protection(in case of theft, or any natural disaster). 

Many immigrants miss obtaining insurance because homeowner's insurance is not mandatory in Canada unlike autocar insurance, however, it is really important to protect your property for any disaster.

As an immigrant, getting insurance might be a little challenging and expensive, but very important. You can hire an insurance broker or an insurance company. Another option is insurance agents. They will help you in determining applicable coverage, discounts, property requirements regarding insurance, and much more. 

The good news is, I can help walk you through the process. As an immigrant myself, I’ve been there done that. Book your free consultation today and let me show you the ropes!