To BREXIT Or Not To BREXIT. That Is The Question.
The news of Britain electing to leave the European Union came over the wire last night shocking the rest of the world and of course Scotland who were the majority who elected to remain. Can BREXIT affect Toronto Real Estate?
Toronto is the World’s most culturally diverse City and has experienced tremendous growth as a result of local economic confidence as well as a flood of foreign investment especially in our Real Estate markets. Considering this shocking news has resulted in losses across the board with the Financial Times reporting the FTSE 100 starting the day down almost 9% then recovering to a net decrease of only 3.2%. The Pound Sterling taking an 11% nose dive but recovering to a net loss of 7.8% has sent shock-waves across the globe with folks net worth being slashed as the day went on.
Any sort of global economic event could seriously impact Toronto Real Estate especially in development financing but we don’t see this affecting the end user home buyer any time soon as events like this tend to keep the Bank of Canada as well as the Big Banks from making any significant interest rate changes to further fuel investor paranoia and sell-offs. In fact, we see this event as adding to the demand for Toronto Real Estate with increased demand from British Non-Resident purchasers.
We’re confident this won’t negatively affect the Toronto Real Estate market as a whole but also very important to not make any hasty selling or buying decisions until all the dust has settled. BUT if you’re one of those impulsive folks and feel like you’d like to move over the pond and make Toronto your home? We’re here to help.
Buying Canadian Real Estate as a Non-Resident
There are a couple of major things you need to understand when buying Canadian Real Estate as a Non-Resident. First of all, the Canada Revenue Agency identifies anyone who spends less than half the year in Canada as a non resident so you may find yourself (someone who identifies as Canadian) on this list to be careful!
Down-payments & Taxes
When buying real estate you need to have your down-payment and closing costs in cash on moving day. Us lucky Canadians can get away with as little at 5% of the purchase price as a down payment but unfortunately that percentage jumps significantly to 35% for non-residents Buying in Canada. Of course there’s also something called a Land Transfer Tax which first time buyers get a partial rebate from. Find out what your total costs are using our custom Buying/Selling calculator(dropbox to excel file) and please do call or text 1-416-434-1511 or email email@example.com if any questions.