Any views on Canada?

[colcam101]

Especially Toronto? Seems to be relatively low priced, has experienced steady historical growth and is not burdened by the daft loan fiasco that is affecting USA. Also you get the same great dollar/pound rate as for the USA at the moment. All seems great but nobody seems to mention it - any ideas why?

[Olly]

Originally Posted by colcam101

Especially Toronto? Seems to be relatively low priced, has experienced steady historical growth and is not burdened by the daft loan fiasco that is affecting USA. Also you get the same great dollar/pound rate as for the USA at the moment. All seems great but nobody seems to mention it - any ideas why?

Hi

Overall Canada should be high on almost everyone's prospective investment location. Sensibly rising property prices (circa 10% oer annum) in recent few years and reasonably good rental returns. Toronto is producing rental yeilds of around 6.5% but, Montreal where purchase prices are lower, are producing 7% and higher.

More localised information is available via each of the Multiple Listing Services per region / city, etc.

The Canadian economy is strong and it's well worth investgating growth rates per region since there can be quite large differences which, in turn, can increase potential ROI.

Hope this further encourages you to look beyond the horizon and delve deeper into this countries fabulous potential.

Have fun...

Olly

[Liam Bailey]

Yes, Canada is a good market. Quebec is especially strong. We have a property on the Rouge River resort, voted the best resort in Quebec 8 years running, and almost smack bang in the Middle of two popular tourist destinations, Montreal and Mt Tremblant.

Because of its location millions of dollars worth of property developments are currently being built in the area. Yet, we have 1 acre land plots for just £27500. 0-6 bedroom pre-designed chalets are ready to be built immediately, whenever you choose or never, its your choice, building costs are about £80 per sq-ft, and an average 3 bedroom chalet is about 1000 sq ft.

100 miles of Rouge River runs right through the site, offering Kayaking, game fishing for trout, and a 100 mile cycle track weaves its way through the forest along the river bank. In winter the cycle track becomes a cross-country ski trail and fishin becomes ice-fishing.

All year round rental potential lies in the wealth of activities. For skiers, Mt Tremblant is a short-drive away where they will find excellent Alpine ski slopes to compliment the cross-country trails on Rouge River resort.

Its location means it attracts visitors in its own right, as well as those looking to visit Montreal or mt Tremblant but scared by the prices. The low price of our Rouge River properties means holiday rental can be offered cheaper than in Montreal or mt Tremblant, while keeping yields in the 8-10% bracket.

Because of the multi-million dollar investment in the area we are hopeful of above average capital appreciation as well.

Liam Bailey
Head of International Research
David Stanley Redfern Ltd

[cin7166]

Hi Liam

Could you please send me more details on the plots at Rouge River?

Regards,

Cheryl

[Liam Bailey]

Hi Cheryl,

My email address is media[at]davidstanleyredfern[dot]com, if you drop me a line with your email address I will send you full information on the plots.

[mickthepropertyguru]

Does anyone know what the CGT in Canada is ?
The taxable Gain income seems to be ( Capital Gain - expenditure (buying costs selling cost, maintenance, travel etc ))divided by 2 = Taxable Capital gain .
But what is the % they charge on the Taxable Capital gain ?

[Liam Bailey]

Hi Mick,

You are right, tax is paid on 50% of the actual gain, which is the total gain less costs.

The percentage of tax paid on half the actual gain is 25%.

So you could say that CGT in Canada is 12.5%, becuase 25% on 50% of the gain, is equal to 12.5% on 100% of the gain.

Liam Bailey
Head of international research
David Stanley Redfern Ltd

[mickthepropertyguru]

I have friends in Alberta buying condos but the prices seems to be falling at the moment. Its very hard to know which areas will fall next ?
I love Canada and i would have no problem in relocating there in a few years. Montreal, Ontario are beautiful and the people are the best you can find.
Is there any other states that may have hit their peak ?
Also can you verify that non residents that have invested in property can claim most if not all of their tax back due to being a non resident, Rental tax etc ? This seems to be the way in the USA unless it has changed in the last few years ?

[Liam Bailey]

Sorry but even if I knew -- which I don't -- I wouldn't be able to tell you. We are not authorised to advise clients or potential clients on their taxation affairs, it is a specialist field and we are duty bound to advise clients to seek specialist advice. Because of this there is no cause for me to investigate or research these matters - sorry.

Liam Bailey
Head of International Research
David Stanley Redfern Ltd

[mickthepropertyguru]

Thats fine Liam. Itotally understand your position.
Any information on forums are just guidelines anyway and its a given any investor should consult tax professionals before investing.