My friends, hello everyone! Today I want to answer questions about Canadian real estate. This question has been asked many times, especially, as you know, I am a professional realtor. Under what conditions can I buy real estate, and is it necessary to buy immediately at full cost, or is a loan possible? If there is such a practice, what do the buyers then do with it, live constantly themselves or come once in a while, and rent the rest of the time? And if a foreigner can buy real estate in Canada, then in what status will he live in the country without Canadian citizenship? Or they give him a multiple-entry visa for a residence period of six months to a year, etc.
Money will not save you
In fact, such questions are asked quite often. One question that I get almost regularly sounds something like this: “What is the cost of real estate? “In what place, in what province and for what money can I buy an apartment or a house in order to receive the status of residence in Canada?” I am not an immigration specialist, but I talked with lawyers, and from what I know from my life in Canada, buying a property will not help you get a residence status in Canada. In no province. For no money. Some people are a little outraged about this, saying that this is some kind of stupid position, because if I have money, I can invest it in the Canadian economy, it should be quite profitable and interesting for the country. I think that you are partly right, any country needs money, investments are always welcome, provided that this does not violate democratic principles.
Opportunities must be equal
Canada’s democratic principle is: “We cannot discriminate against an individual on the basis of whether he has money or not.” I’ll try to explain what I mean. Imagine that someone organized a prostitution network, sells weapons, drugs or conducts a criminal business, he managed to get a lot of money. At the same time, he says that he will go now and will settle in this country for a million dollars. The Canadian government and the Canadian level of democracy do not provide for this, considering that all people are equal in their rights, and if there is another person who works honestly, does not steal, does not rob anyone, does not engage in criminal activity, pays taxes, but As a result, did not earn a lot of money, then, it turns out that he should be denied entry into the country? I had situations when people came from Russia, Kazakhstan, Uzbekistan, Belarus, other countries with big money, at least that is how they positioned themselves, the conversation was about 2, 3 and 5 million dollars. These people usually reasoned like this: “If I want to come to Canada tomorrow, I will pay the Canadian government half a million dollars …”. Their intonation was such that if they transfer this money to the Canadian government, then tomorrow afternoon they will be given a visa or a residence permit to almost their home. Most of them never came back later. Because if you have money, this does not mean that everything will happen very quickly. From what I know from conversations with immigration lawyers, this can last a year, two, or three. And I completely understand why. Because, as soon as you declare that you have big money, the government of Canada must understand what kind of money it is, what its origin is. Least of all, the Canadian government wants to see some thieves, bandits, corrupt officials, people who sell weapons, prostitution, drugs, etc.
How to increase the loyalty of the authorities
Now let’s talk about buying real estate. There are several concepts. You go through emigration in your country, at some point you get the status of landed-immigrant, that is, you get the right to permanent residence in Canada, what is called a green card in America. That is, you are not a citizen of the country, but you can stay in it as much as you see fit. You do not need any visa, you do not need to leave the country. If you come to Canada as a landed-immigrant, then for you there is a program for new immigrants, when you have to make 35 percent of the amount you buy from your own money. In this case, Canadian banks will treat you very loyally. They will not ask you for a credit history, which you naturally don’t have, they will not ask for a job that you also don’t, of course, because you have just arrived in the country. And with these 35% you can easily buy real estate. There were a lot of such deals in my time. The second option: you are a foreigner who came to Canada and just decided to buy real estate. Even in this case, you do not have to pay 100%, you can buy real estate, making only 50% of the cost. But in this case, the Canadian bank will give you a loan, most likely, without any problems. The only thing they usually ask is to provide a certificate from your bank stating that you are a good client, and not some kind of violator. In addition, they usually ask you for a certificate stating that you own a business or have a certain income. The meaning of this document is that you paid your 50%, they give you their 50%, but they also want to make sure that you have income in order to cover payments on this loan. Is there a visa? Now about what gives or does not give the purchase of real estate in Canada in relation to the status of residence. Canada is a visa-free country for so many countries, such as France, Germany, Italy, the United States, but it is a visa country for Russia, Ukraine, Kazakhstan, Uzbekistan, etc. Some of my colleagues said that a certain rather large Russian businessman Before arriving in Canada, he decided to build a very large, beautiful and expensive house. When the house was actually ready, he had to come for some reason. But it seems that something did not like the Canadian embassy, and he was not given a visa. As a result, the person could not look at his own house, and as a result, this house had to be sold, because the owner either could not come here, or had already gone out of bed.
Who is buying a house? Nevertheless, every year I have two or three transactions when people who have just arrived in the country buy property — migrants or foreigners. Who are these people and why are they buying this property? It has become very popular with us to send our children to study in Canada. That is, children are sent to some private school, they begin to study from the 7-8th grade, then they go to the university. Thus, they are in the country for 7-10 years. Therefore, parents often reason as follows: “He enrolled in school, is a fairly successful student. Why do we pay rent, throwing out 15-20 thousand dollars every year? Isn’t it easier to buy him housing there, and we can regularly visit him in Canada, and we will have where to stay. ” I have a lot of such deals. In such cases, you usually buy a home like a foreigner, depositing 50% or more, depending on whether you want to deposit more or not. How beneficial is a mortgage in Canada? Lending rates today we fluctuate at a very low level: 2-3%. Therefore, of course, it is profitable to take such loans. Not only do you not throw away money for rent, you still have your own real estate, which is gradually growing in price and is also paid in parallel. It makes sense to me, and we conduct such transactions quite often. In the case when your child is studying and has been living in Canada for a long time, parents are usually given the same multivisa for 5-10 years, according to which you can come there every year without applying for a new visa. Will it turn out?
They also asked me what happens if a person bought property, whether he can rent it out. Of course, it can, like any Canadian citizen, either with the help of a realtor, or on their own. The only thing you should not forget to pay taxes on this. Realtors go for a trick. Another person read on the forum that a kind of selling method has been adopted in Canada, when the price of real estate is slightly underestimated in order to create an excessive demand for it, thereby selling it can be more expensive and more profitable. They ask me if this is true. Yes it’s true. There is such a technology, and I, as a realtor, also often use it, if the seller does not mind. It happens as follows. Let’s say your property is worth half a million dollars. If we put it out for $ 480,000-490,000, it may very well be that in the area where 40-50 houses are sold in the district, this will turn out to be the best house. Especially if he is in excellent condition, plus his price is very good. Then it is not surprising that several potential buyers will appear on this property at once. It is easy to guess what will happen, as they say here, a multiple offer situation – an auction. The price will go up, and as a result, a house that cost half a million can be sold for $ 520,000-530,000.
Therefore, yes, such a sale technology exists, but I would not idealize it. Sometimes it gives positive results, but often it is not as simple as it might seem. Because, imagine a situation where the property that you put up for 480,000 will attract only one buyer who is not going to pay more, and he may also want to bargain. Where else can you bargain if you already set a low price. But, if you don’t go into professional subtleties, there is a way out of every situation, and if someone needs this sometime, I’ll explain how to act here. But, if you answer briefly to this question, that is, such a sale technology sometimes gives very good results. But nothing ideal happens, and at some moments it may not give positive results. For all there are certain cases and the will of God.