Canada is a country where, despite the highest standard of living, real estate prices remain reasonably buyable. This is the reason that many businessmen and investors are buying more than one property to invest in real estates in Canada. Even though the prices seemed to be not high, it still a growing market. Sometimes you can see a great inflation in prices and experts say that over the past 15 years, there have been a lot of increase happened in real estate both in demand and supplies.
Canadian real estate board says that the average growth rate in real estate prices per year is normally around 11%. By means of small calculations, it can be concluded that, if you have bought a house or a condo, they actual selling value of that property will be doubled in 7 to 8 years approximately. There is still a chance that you do not need to wait for your property to increase in value, sometimes it will take only couple of years to easily reach hundreds of thousands dollars in profit. That is why most of the wealthy people who understand this system and therefore they invest a lot of money in Canadian houses and properties.
It seems easy to buy and sell a property in Canada and therefore you can continuously get the profit. But that is always not the case and Canadian authorities do have strict real estate laws in place to control it. There are higher taxation is in place to make sure that no one is being affected in this business and no one is making money using any given chances of luck.
Having that said above, if you want to invest in property and also to make income, renting your property is the great solution which would give us no harm but more benefits. Rentals in Canada is a huge market. There are thousands of people come to Canada every single day as immigrants, students, refuges and so on. They all need a place to stay and it could be long term or short term. There are also government funded programmes available in Canada where government would rent your place for less fortunate and people in need. We can guarantee that your rental property will never go without tenants or income at any time of the year due to the demand of them are very high, especially in cities such as GTA or Ottawa.
To better understand the situation, it is worth giving an example of the city of Toronto, where a one-room apartment can bring more than $ 1,000 per month. There are no problems with renting an apartment. The influx of immigrants to Canada is huge – 300 thousand people a year. Almost every one of them plans to live in rented housing for some time, and then, if possible, get their own. The advantage of such a business is that not only Canadians, but also residents of other countries can be owners. When buying real estate, they are also willing to give out loans.
Expenses and taxes for an apartment in Canada
Let us explain these rental apartments theory in numbers to make it simple and understandable. An apartment in downtown Toronto with two bedrooms and a balcony of 70 square meters will cost about 430,000 Canadian dollars. There will be gym, play courts and swimming pool at the base of these apartments for the use of all tenants. The apartment also offers a covered parking space per units. There will be a charge for the maintenance of the apartment. In Canada, there is a tax called property tax, which is – 0.7% of the total cost. Real estate insurance can cost anywhere from $ 30 to $ 50 per month. As for utilities, a medium-sized apartment may require Canadian $ 45-50 for each utility service (heating / water / electricity). Usually tenants pay the utilities as they use them. Sometimes owner rent the unit for a higher rent and have all the cost included in the rental prize.