| Overview | | | | Quite like in the United States, investment in holiday |
| In the 21st century, the property market in Canada | | | | property in Canada is taking two different forms. |
| -- the Great White North -- is dominated by people | | | | First of all, people -- both Canadians and foreign |
| looking to purchase vacation properties and by | | | | nationals -- are buying holiday property for their own, |
| investors looking to capitalize on the growth that is | | | | personal use. In addition (and as has been mentioned |
| being experienced in some of the larger cities within | | | | previously) a growing number of people are buying |
| the country. What is important to keep in mind is | | | | vacation properties to be utilized for more of an |
| that the vast majority of the citizens of Canada | | | | investment purpose. Foreign nationals, for example, |
| actually live within one hundred miles of the Canadian | | | | can be found buying holiday property which they |
| and U.S. border. As a result, the hot markets for | | | | then in turn lease or rent to other individuals who |
| property -- with the exception of some holiday and | | | | happen to be on vacation of holiday. For some |
| vacation properties located further north -- tend to | | | | investors, this has proven to be a very lucrative |
| be along the one hundred mile band near the | | | | avenue of real estate ownership. |
| Canadian and U.S. borderline. | | | | Specific Steps to Buying a Property in Canada |
| With all of this noted, there are some different | | | | In Canada, all matters pertaining to the buying and |
| opportunities available to a foreign national who is | | | | the selling of property is subject to governmental |
| interested in making an investment in Canadian | | | | regulation. Once the parties to a potential sale of |
| property -- either for personal, commercial or | | | | property have agreed on a price (after negotiating |
| investment purposes. | | | | between themselves), a preliminary contract is |
| Investment Property in Canada | | | | entered into between the parties. This preliminary |
| As mentioned previously, the vast majority of the | | | | contract is known either as an Offer to Purchase or |
| population of the nation of Canada is situated in a | | | | as an Agreement of Purchase and Sale. At the time |
| one hundred mile radius from the Canadian and U.S. | | | | the preliminary agreement is entered into between |
| border. Therefore, when it comes to real property | | | | the parties, a deposit is made by the buyer. |
| investing, the marketplaces that a foreign national | | | | The preliminary agreement can take one of two |
| should serious consider is that band of property that | | | | forms. On the one hand, the preliminary agreement |
| lies in those cities and communities within that | | | | can be conditional. By conditional, it is meant that |
| hundred mile band. By far, this represents the area in | | | | certain events need to occur or certain milestones |
| which the greatest amount of growth in both the | | | | accomplished before a contract can become firm. An |
| real estate market and the development of other | | | | example of such a conditional provision would be one |
| commercial enterprises is being seen in the 21st | | | | to obtain financing. If the condition or conditions |
| century. | | | | within the agreement cannot be satisfied for some |
| Commercial properties remain a decent investment | | | | reason, the seller will receive most of his or her |
| when it comes to real estate in Canada. As of yet, | | | | deposit back. |
| most of the major Canadian cities have not been | | | | A firm preliminary contract is one in which there are |
| overdeveloped. There remains a decent demand for | | | | no conditional provisions. If a firm preliminary |
| commercial building space in most of the major | | | | agreement is not fulfilled, financial penalties can be |
| Canadian points of commerce. As a result, a foreign | | | | imposed. For example, if the seller does not perform |
| national interested in investing in commercial property | | | | under the contract, he or she will lose the deposit |
| does have room to maneuver in this day and age. | | | | paid. Likewise, some sort of financial penalty will be |
| People with a more limited amount of money to | | | | imposed on the seller if he or she does not perform |
| invest might want to consider investing in residential | | | | under the terms of the firm preliminary agreement. |
| property that can be leased to travelers on holiday | | | | Within the provisions of the preliminary agreement will |
| or vacation. Tourism remains a strong industry in | | | | be established a completion date. The completion |
| Canada. As a result, there remains money to be | | | | date is when all of the conditions in the preliminary |
| made through the ownership of residential property | | | | agreement need to met. It is at this point that the |
| that can be made available to tourists within the | | | | remainder of the purchase price will be paid by the |
| country. | | | | buyer to the seller. (Obviously, the buyer will need to |
| Residential Property in Canada | | | | have his or her financing in place by this point in time.) |
| Like its neighbor to the south, the Canadian residential | | | | It is at this juncture that the transfer of ownership |
| real estate market significantly varies depending on | | | | of the property from the buyer to the seller will |
| which community is being considered. Not surprisingly, | | | | occur. |
| the costs associated with single family homes | | | | The money associated with the sale is paid whether |
| continues to rise in the larger and more major | | | | through a solicitor or a notary. At this juncture, the |
| Canadian cities. At the present time, the more rural | | | | buyer and the seller will sign what is known as a |
| and outlying residential housing market in the country | | | | Definitive Contract. In the French-speaking province |
| is a bit flat. In other words, if you are looking for | | | | of Quebec, this is called Acte de Vente. In Quebec, |
| bargains on residential property, a foreign national | | | | the final part of the sale is overseen by a notary (or |
| might want to consider one of the more rural or | | | | notaire in Quebec) who is a governmental official. In |
| northward lying communities when looking to | | | | other provinces within Canada, a solicitor can oversee |
| purchase such property. | | | | and handle the final steps of the real estate sales |
| Keeping in mind that a goodly share of the foreign | | | | transaction. |
| nationals who are shopping for and purchasing | | | | In that most people will require financing to purchase |
| residential property in Canada are doing so to set up | | | | property in Canada, it is important to generally |
| a holiday retreat. Therefore, a more rural setting | | | | understand the lending process in that country. For |
| oftentimes is a welcome choice for such a property | | | | the most part, mortgages in Canada are so-called full |
| investor. | | | | status arrangements. Full status means that the |
| Residential Real Estate - Apartments in Canada | | | | lender will make a thorough and complete |
| There is something of a boom when it comes to the | | | | investigation of a borrower's background and credit |
| residential property market as far as apartment units | | | | history. |
| are concerned. With some growth being experienced | | | | In Canada, a purchaser of real estate will have to |
| in some of the more major Canadian cities, the | | | | pay about 35% of the total purchase price out of his |
| demand for apartments and similar types of | | | | or her pocket. In many instances, this will be the size |
| multi-family housing units is increasing. | | | | of the deposit associated with the preliminary |
| Many foreign nationals who have a desire to | | | | contract to purchase property. The mortgage itself, |
| experience Canadian life for holiday purposes are | | | | in most cases, will be for a term of 25 years with |
| snatching up apartment units in different cities in the | | | | the final payment needing to be made before the |
| country. More often than not, these foreigners are | | | | borrower reaches the age of 70. |
| making the purchases of such properties in the larger | | | | Lenders in Canada pay very close attention to a |
| cities at the southern end of the country. | | | | borrower's available income. Indeed, in most |
| In some more rural areas, the number of apartment | | | | instances, a lender will closely analyze what a |
| units also has been increasing in recent years. Some | | | | borrower will be expected to earn over the lifetime |
| foreign nationals have taken to investing in these | | | | of the loan. |
| types of operations for investment purposes and | | | | The mortgage loan itself will be secured by the |
| have taken to buying shares in apartment complex | | | | property that is being purchased within Canada. |
| enterprises. | | | | Oftentimes a foreign national will seek to have |
| Holiday Property in Canadian Holiday Resorts | | | | property in another country utilized to at least partial |
| As referenced previously, tourism and travel remains | | | | zed collateralize a loan in another country. In Canada, |
| a top industry in Canada. Indeed, each and every | | | | this is not an accepted practice. |
| year, an ever growing number of men and women | | | | By understanding the ins and outs of the real estate |
| are flocking to the Great White North for holiday or | | | | purchase transaction in Canada, an investor will be in |
| vacation purposes. Consequently, the demand for | | | | a far better position to make appropriate decisions |
| holiday real property has increased significantly, | | | | pertaining to the buying and selling of property in that |
| particularly over the course of the past twenty to | | | | country. |
| twenty five years. | | | | |