Looking to buy a house in Canada as a foreigner

[StellinaRoma]

Hi there



I am here with the hope of getting some clarifications on some things regarding property in Canada. I am 28 and I am originally from Rome, Italy but I live in London due for work. As you can see form my age, I am still "fairly young" and just at the very beginning regarding houses and real estate in general.

I have an apartment just outside of Rome that was owned by my parents, who died a few years back. I am an only child, with no husband or kids, so that flat is only mine. I am selling the place now, I actually got an offer last week. I want to sell it because I don't like the area where is located because you can't literally live there due to the fact that...well, it's Italy. Nothing works (sorry but that's the reality) and although this place is only 15 miles from Rome, it takes an hour to get to work every morning if you live there. I don't want to end up spending that money once I sell the place as I know it would have broken my parents' heart. I want to invest it in another property, in Canada. I know that as a foreigner you can buy a place in Canada. Now, I live in the UK permanently and a small house in Canada would be only as a vacation house. I love Canada, I feel safer when I am there and I think it's a beautiful Country for a person who loves nature like I do. My budget would be 87.000-89.000 euros which is maybe around $100.000. I tried to get in contact with some real estate agencies and they keep telling me that I need over $300.000 (all 3 told me the same in 3 different areas of Canada: BC, AB and ON) and to use the money I get to put down the 35% I need to get a big fat mortgage as a non resident. I don't want to because I don't want a mortgage and it would be a house that I use maybe 2 months per year, you know, for my holidays. It would be a holiday home. Or something like that. I just want to get that money and buy a place, that's it. No banks. I was looking for places in ON, like Hamilton or other towns. Do you think it's possible to find a place for let's say $95.000 somewhere there? Thank you

 

[housingrental]

A price of $95,000 is very low in Canadian cities.

In select lower demand areas you will be able to purchase houses that need extensive renovation work or older co-op or condo apartments.

Please email me through my website to connect you with a realtor in Hamilton who can help.

 

[StellinaRoma]

I beg to disagree:



http://hamilton.kijiji.ca/c-real-estate-condos-for-sale-150-CHARLTON-Avenue-East-W0QQAdIdZ493736328



This ONE looks PRETTY GOOD to me. I don't know if it does to you.

Oh and by the way, the realtor, whatever his name was (can't even remember anymore) a total rude and unmannered guy who didn't even dignify me with a tiny little reply. I find you and all the realtors there quite rude. You just want to extort money from people by dragging them into getting massive mortgages they do NOT need so that you can make money off them and their desperation. Keep doing it then don't complain when what happened to your transborder cousins will eventually happen to you. Bad part of it is that you are dragging all other countries right along into YOUR big debts.

So, do me a big favor: bite me.



Cheers

 

[Thomas Beyer]

[quote user=StellinaRoma]Do you think it's possible to find a place for let's say $95.000 somewhere there?


You can get an entry level condo in a small city for less than $100,000. Not in a big city nor a house.



Consider these options:

• an investment with a firm or person that owns and operates houses, commercial property or apartment buildings in Canada. With a bigger firm or a JV with a REIN member. There are quite a few good ones. We do not take foreign investments due to paperwork unless the investment is more significant. But many REIN members who blog here will. That is probably your best option. With $90,000 invested you can buy a house worth 3-4 times that that still cash-flows and builds equity in 5-10 years.
• a Canadian REIT. There are about 20 or so to chose from.
  a small mortgage, say 50% loan-to-value. Then you can buy a condo in a city or a small house for $200,000. More options to chose from.
  just park cash in Canada. As the Euro tanks your investment goes up, in Euros. Essentially you are buying a slice of Canada, all 10 billion sq kms !

Buying a property in Canada with no mortgage makes less sense due to the inflationary upside of real estate and the low borrowing rates. See here: http://myreinspace.com/public_forums/Real_Estate_Discussion/62-26733-133015-What_is_better_cash-flow__or_higher_ROI_.html



Where to buy in Canada: Buy in Alberta or Saskatchewan, where most of the Canadian oil and gas is (plus baby
boom, agriculture, low debt, low taxes, and the highest growth in Canada), or in NE-BC where
there is lots of gas. Ontario is like Europe, full of overpaid civil
servants, very high taxes, huge deficits, bloated governments with huge
legacy debts. Proceed with extreme caution here, with at least a ten year hold in mind due to property transfer taxes (2x in Toronto), or stay away there until the Conservatives get elected, which
maybe in 2 years or perhaps in 6 or maybe never. Stay clear of anything
east of Ontario as it is too remote, or where they speak French in Canada.



Buona fortuna !



Immobiliare in Canada ovest à una scelta eccellente !

 

[Sherilynn]

[quote user=StellinaRoma] it would be a house that I use maybe 2 months per year, you know, for my holidays. It would be a holiday home.


If you plan to use the property as a holiday home for 2 months each year, then what do you plan to do with it for the rest of the time?



Fully-equipped suites can be a great option for short term rentals, but property management is higher priced because it is seen as being more intensive. Also, much research is required as to the location.



If you plan to leave the suite vacant, that seems like quite a waste. Perhaps investing in a regular rental property or REIT (such as Thomas suggested) would be a better idea.

 

[reinvestors88]

[quote user=StellinaRoma]Oh and by the way, the realtor, whatever his name was (can't even remember anymore) a total rude and unmannered guy who didn't even dignify me with a tiny little reply. I find you and all the realtors there quite rude.


We are not realtors...we are real estate investors, but, I think many readers will agree that the above statements are rude especially for visitors in this Forum...please dignify yourself by displaying some respect to other people...don't generalize...there are plenty of good realtors around...



[quote user=StellinaRoma]You just want to extort money from people by dragging them into getting massive mortgages they do NOT need so that you can make money off them and their desperation.


If I were you, I won't invest in Canada if you believe it is not beneficial to you and your money...it is entirely your decision and nobody is forcing you...remember you voluntarily post your story soliciting for advice...



[quote user=StellinaRoma]Keep doing it then don't complain when what happened to your transborder cousins will eventually happen to you. Bad part of it is that you are dragging all other countries right along into YOUR big debts.


Did you ever ask yourself why you are working in London not in Rome, Italy and now looking at buying property in Canada? I wonder what your real motivation is...



Whichever way you go, I wish you all the best...

 

[Julie4bugs]

You can look for a private lender to finance your purchase also. If you intend on occupying this condo for only 2 months per year, most provinces will require that you purchase vacancy insurance (which is very expensive, trust me I've done it). I have also rented my home for three years while living in Europe, and without our employer's help this experience would have been more trouble than it was worth. I should also caution you that although Canada is a very nice place to visit, you may find living here very different. I have lived in three provinces and I could tell you first hand, they are all very unique. Decide whether your goal is to invest here or to live here. If you invest (some cities are better for that than others)... I recommend that you contact a real estate investor who accepts foreign investment money. If your goal is to eventually live here, I would consider renting at first. You can get some decent prices on short term rentals. Especially in the winter when the snow birds fly south If you like it here, great. I have been back for 2 years and I'm finally used to it.

 

[Thomas Beyer]

[quote user=Julie4bugs]Decide whether your goal is to invest here or to live here. If you invest (some cities are better for that than others)... I recommend that you contact a real estate investor who accepts foreign investment money. If your goal is to eventually live here, I would consider renting at first.
Well said !



Molto bene !

 

[housingrental]

This is a very unique post.

Note I'm not a Realtor and would not be involved with your transaction.



[quote user=StellinaRoma] I beg to disagree:



http://hamilton.kijiji.ca/c-real-estate-condos-for-sale-150-CHARLTON-Avenue-East-W0QQAdIdZ493736328



This ONE looks PRETTY GOOD to me. I don't know if it does to you.

Oh and by the way, the realtor, whatever his name was (can't even remember anymore) a total rude and unmannered guy who didn't even dignify me with a tiny little reply. I find you and all the realtors there quite rude. You just want to extort money from people by dragging them into getting massive mortgages they do NOT need so that you can make money off them and their desperation. Keep doing it then don't complain when what happened to your transborder cousins will eventually happen to you. Bad part of it is that you are dragging all other countries right along into YOUR big debts.

So, do me a big favor: bite me.



Cheers

 

[Lahen]

Yeah! You can. I recently bought a home from a good property management company within reasonable prices and the home is really good and well located. Try to search for some these kind of companies in your area.





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