Buying Land In Canada

While purchasing land in Canada as a foreigner is permitted, and there is no residency or citizenship required, many real estate investors are looking for new opportunities to invest in Canadian land. There are many aspects to consider when making this leap.

The Prohibition on the Purchase of Residential Property by Non-Canadians Act

Having gone into effect January 1, 2023, this is a new movement that is based on addressing the housing crises currently ongoing in Canada. What defines a residential property is “a building with up to three dwelling units and can include detached homes, semi-detached houses, units in a rowhouse and residential condo units or similar premises.” The ban also applies only to properties located in metropolitan areas or defined as agglomeration.

Property Taxes

You must pay a provincial land transfer tax when purchasing land in Canada. The amount varies depending on region, and you are exempt from this tax on your first purchase in the country. Much like the U.S., annual property taxes are based on an assessed property value. It is also important to note that roughly 89% of all Canadian land or territory is held by the government, known as Crown Land.

Financing A Property

To get started investing in Canadian real estate, you’ll need to start a Canadian bank account a certain amount of time before applying. Additionally, a 35% down payment is required from a non-resident. When it comes to foreign investors, traditional lends are generally more likely to offer lower interest rates while private lends tend to be more flexible. For any U.S.-based potential investors, find a real estate agent local to the area you wish to invest in.

Benefits of Land Ownership

Owning land in Canada offers several benefits for investors. Tax deductions for property taxes and internet expenses are available, similar to those in the U.S. With approximately 89% of Canadian land held by the government, known as Crown Land, investors must navigate local regulations and work with experienced real estate agents and lawyers to ensure compliance and maximize investment returns.

Choosing the Right Property

Selecting the right property for your lifestyle and dreams is an important decision when investing in Canadian land. While working with a local real estate agent is recommended, conducting thorough research and due diligence is equally important. With the Canadian real estate market becoming increasingly competitive, investing in land now could prove to be a lucrative long-term strategy for investors seeking growth and diversification opportunities. Choose to have the right people in your corner when taking the first step in investing in Canadian real estate. Read the full article on our designated land real estate website. United Country’s Canadian team is primed and ready to get your situated in your ideal home, land or lifestyle property in the most seamless and stress-free process possible. Browse our current listings to start your journey today!