Non resident buying investment property

[MichelleHousl]

I am a Canadian citizen but a nonresident since I live and work in dubai. I have a house in calgary that we rent out, renter cover mortage, taxes and property management fees.
Can I buy another property in Canada as an investment and stay a non resident? If so, how? How much do I need to put down?
Thanks,
Michelle

 

[Thomas Beyer]

[quote user=MichelleHousl]If so, how? How much do I need to put down?


No rule .. whatever the banks feel is appropriate given your assets and income .. minimum 20% by law, but likely 30% to 35% down as a non-resident, depending on bank .. try the big 5 and shop around.



Regarding rental income you also have to withhold 25% from gross rent and/or gain on sales or file a NR6 to file taxes on actual income or gains. More here on this:

 

[Nicola]

Hi Michelle,



I am a Canadian non-resident living in Korea. We have a number of investment properties in Canada (the most recent one we bought last year).



Being a "non-resident" is hard to define, but you should have as few ties to Canada as possible to maintain this status. Buying an investment property should be fine as long as it is leased and not available for your personal use. (I'm not an accountant, though.)



Thomas is right about the non-resident's tax. However, I doubt you would be able to get financing for less than 35% down these days. (A few years ago we were able to get 5 mortgages with HSBC for 25% down, but they don't do it any more.) Some lenders just aren't interested in non-residents, but there are some that will finance a small number of properties. We had some trouble finding a lender willing to deal with us last summer.



If you have specific questions about non-resident investing, feel free to ask on this forum or PM me.



Nicola

 

[FayyazAhmed]

Hi

Yes you can buy other rental property with 35% down payment