Real estate investments in Canada

#יםמהשבוי Ilana Dadik Zahavi

#Post 4 real estate investments in Canada

When talking about real estate in Canada, you have to understand that it is a wide and diverse market that produces various investment opportunities in the second largest country in the world.

Canada offers a rare combination of economic stability, demographic growth, and diverse opportunities.

Canada has a population of about 40 million, and its population grows by an average of about half a million more residents each year.

The advantages of the Canadian market:

Economic stability:

Canada is considered one of the economically stable countries in the world thanks to its many natural and mineral resources - oil and natural gas, minerals and metals, water (holds about 20% of the fresh water in the world!), fertile land for agriculture, coal, and in addition, is a leader in the production of renewable energy.

Constant demographic growth:

Canada is a leading destination for immigration, which ensures a constant increase in demand for housing, especially in major cities such as Toronto, Vancouver and Montreal. The country encourages immigration due to its large area that requires working hands.

Since prices in city centers are rising and becoming unattainable for many, the centers are beginning to expand and interesting opportunities are also being created in new markets.

Diverse opportunities:

Canada is divided into federations and provinces and each of them has its own government, its own laws and its own culture.

There is a wide spectrum of residential cultures (for example - there are populations whose culture encourages living in rented apartments and there are populations that live in private houses) and therefore there is a wide variety of investment options and their distribution.

Transparency and convenient regulation:

The Canadian market is characterized by high transparency and regulation that allows operating in a relatively comfortable manner.

The government maintains systems that regulate major changes and maintains a stable economy which allows for stable investment without many surprises.

A combination of value increase and fruitful income:

Canada excels in its ability to bring a fruitful return on investment in a combination of new areas that are constantly developing and also allow for a significant increase in value.

Disadvantages worth noting:

High taxation:

As in many advanced countries, Canada also has high taxes on real estate investments, especially for foreign investors. The tax rate for a single house in Canada for a foreign investor is 25% of the value of the property.

maintenance:

When we live in Israel we are not familiar with the Canadian weather which has a great influence on the real estate market.

A fine for uncut grass or snow that freezes construction processes, these are things that you need to know how to take into account.

Remote management:

Canada, like the USA, is very far from Israel and does not allow "jumping into property".

That's why working with good professionals and being able to trust whoever manages the property is super important.

Pictured: The Northern Lights from the backyard!