Can we buy a place to live in while studying?
Apr 22nd 2016, 4:18 pm
#1
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Can we buy a place to live in while studying?
I am very close to applying for a 2 year study visa for Vancouver. It will be me studying and my husband will be on the visa too.
Our plan is, as we are lucky enough to own our house in the UK, to sell that house and split the money to buy a small house in the UK to rent out while we are gone. This will provide us with a very small income and also means we have somewhere to return to at the end of the 2 years.
Rather than pay rent, we want to buy a small apartment to live in while in Vancouver.
BUT having just read on the forum a scary reply to a question regarding funding a study visa, which said you should not be selling your house to fund the trip, we are now worried that immigration would see what we intended to do in a bad way?
Our plan is, as we are lucky enough to own our house in the UK, to sell that house and split the money to buy a small house in the UK to rent out while we are gone. This will provide us with a very small income and also means we have somewhere to return to at the end of the 2 years.
Rather than pay rent, we want to buy a small apartment to live in while in Vancouver.
BUT having just read on the forum a scary reply to a question regarding funding a study visa, which said you should not be selling your house to fund the trip, we are now worried that immigration would see what we intended to do in a bad way?
Apr 22nd 2016, 4:31 pm
#2
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Re: Can we buy a place to live in while studying?
Part of the proceeds of selling your home in the UK will fund the purchase of an apartment in Vancouver? 
Where do you live, Blenheim Palace? 
Where do you live, Blenheim Palace?
Apr 22nd 2016, 5:04 pm
#3
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Re: Can we buy a place to live in while studying?
No, we don't live in a palace and it's quite possible where we live in England to buy a terrace house for £150,000 and it's also possible to buy an apartment that doesn't cost squilliands in Vancouver, there are small apartments in certain areas (that ordinary people who aren't royalty don't mind living in) that start at C$230,000.... 🏔🌄🌇⛺️
Apr 22nd 2016, 5:30 pm
#4
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Re: Can we buy a place to live in while studying?
They may do, but presumably you're not going to buy before moving there i.e. you'll rent and try the area out first? $230k could be a very dodgy area or place! So would you have the visa before you sell/buy anyway?
Are you just buying as an investment? You're happy to have the property even if you can't live in Canada/when you return to the UK?
Are you just buying as an investment? You're happy to have the property even if you can't live in Canada/when you return to the UK?
Apr 22nd 2016, 5:49 pm
#6
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Re: Can we buy a place to live in while studying?
Non residents can buy property in Canada but suggest a lot of reading on tax implications of buying, living in and eventually selling. Not sure immigration will be that concerned but the taxman at some point might be at some point both in UK and Canada on any rental income or capital gains. Any comments on not selling up in UK just reflects someones opinion based on fact a study visa is temporary and not an easy route to PR if at all. Plus of course need to demonstrate up front course funds plus first year living costs which could total near 30k cAD. Maybe share some of the areas where these relatively cheap properties are located, might open up a lot of negative feedback but on other hand discussion is what forums are mostly about, good and bad.
Apr 22nd 2016, 7:08 pm
#7
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Re: Can we buy a place to live in while studying?
A study permit for a suitable program of study can lead on to an eventual PR application. You have to take a medium term view. So it is not the study permit as such. It is more what may flow from that, in terms of Canadian qualifications; a possible PGWP (leading to work experience which may qualify the person for CEC EE together with their Canadian qualifications). As well, some PNP programs have international graduate streams. I would not disregard this option at all, depending on where you are in your life and what situation you are in. Many people make this kind of investment.
S
Last edited by Snowy560; Apr 22nd 2016 at 7:11 pm.
Apr 22nd 2016, 7:27 pm
#8
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Re: Can we buy a place to live in while studying?
Could be costly...taxes and solicitors fees when buying. Hefty realtor fees, taxes on the profit and legal fees when selling. Add to that the cost of furniture and monthly condo fees...could well be at a loss if you sell a few years later.
Apr 22nd 2016, 8:32 pm
#9
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Re: Can we buy a place to live in while studying?
Actually that price could get you something habitable in Vancouver, however right now there are only 18 properties in the whole of Vancouver under $250k and 5 on the north shore. 4 of those are parking spaces...
The fact that they are For Sale at all in the current 'lively' market suggests that they won't be desirable or will have major re-sale issues afterwards.
$229k gets you a moored micro-houseboat in Coal Harbour Marina. That's probably the only one I'd buy!
The fact that they are For Sale at all in the current 'lively' market suggests that they won't be desirable or will have major re-sale issues afterwards.
$229k gets you a moored micro-houseboat in Coal Harbour Marina. That's probably the only one I'd buy!
Apr 22nd 2016, 9:30 pm
#10
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Re: Can we buy a place to live in while studying?
You may want to read the tax implications of selling your house when leaving Canada too. Unless you are sure that you are going to stay in Canada permanently, you may want to rethink the idea of buying property just for 2 years.
Giving up Canadian residence | The tax planning guide 2015-2016
Tax and House Sales-Canada : British Expat Wiki
You would also be required to declare the foreign property if valued at over $100,000 and any income you received from renting it.
http://britishexpats.com/wiki/Foreig...porting-Canada
Tax on Renting UK home from Canada : British Expat Wiki
Giving up Canadian residence | The tax planning guide 2015-2016
Tax and House Sales-Canada : British Expat Wiki
You would also be required to declare the foreign property if valued at over $100,000 and any income you received from renting it.
http://britishexpats.com/wiki/Foreig...porting-Canada
Tax on Renting UK home from Canada : British Expat Wiki
Last edited by Siouxie; Apr 22nd 2016 at 9:33 pm.
Apr 24th 2016, 7:43 pm
#11
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Re: Can we buy a place to live in while studying?
Non residents can buy property in Canada but suggest a lot of reading on tax implications of buying, living in and eventually selling. Not sure immigration will be that concerned but the taxman at some point might be at some point both in UK and Canada on any rental income or capital gains. Any comments on not selling up in UK just reflects someones opinion based on fact a study visa is temporary and not an easy route to PR if at all. Plus of course need to demonstrate up front course funds plus first year living costs which could total near 30k cAD. Maybe share some of the areas where these relatively cheap properties are located, might open up a lot of negative feedback but on other hand discussion is what forums are mostly about, good and bad.
We've been in Vancouver doing our research and seen lots of properties in East Hastings, Grandview, Fairview, Kensington, Renfrew-Collingwood and Davie Village. We have a brilliant realtor helping us which is essential.
The study visa is the best and only route into Canada for us as we are not young enough for the other visas.
I need to upgrade my qualifications as I originally trained in 1988 and technology has moved on in leaps and bounds since then. I've been self employed for a long time and want to work for a bigger company again, so even if I was to look for new work in England they would want candidates to be fluent in modern methods. (I work in fashion). The Canadian qualification is internationally recognised and even if we return to Britain at the end of the 2 years, what a brilliant place to have studied....hopefully we'll qualify for the CWPP which could give us a further 2 years.
Apr 24th 2016, 7:55 pm
#12
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Re: Can we buy a place to live in while studying?
You may want to read the tax implications of selling your house when leaving Canada too. Unless you are sure that you are going to stay in Canada permanently, you may want to rethink the idea of buying property just for 2 years.
Giving up Canadian residence | The tax planning guide 2015-2016
Tax and House Sales-Canada : British Expat Wiki
You would also be required to declare the foreign property if valued at over $100,000 and any income you received from renting it.
Foreign Asset Reporting-Canada : British Expat Wiki
Tax on Renting UK home from Canada : British Expat Wiki
Giving up Canadian residence | The tax planning guide 2015-2016
Tax and House Sales-Canada : British Expat Wiki
You would also be required to declare the foreign property if valued at over $100,000 and any income you received from renting it.
Foreign Asset Reporting-Canada : British Expat Wiki
Tax on Renting UK home from Canada : British Expat Wiki
I now find out if it counts as a principle home if we own a house in the UK at the same time.
Apr 24th 2016, 8:32 pm
#13
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Re: Can we buy a place to live in while studying?
Thank you for your sensible thoughts.
We've been in Vancouver doing our research and seen lots of properties in East Hastings, Grandview, Fairview, Kensington, Renfrew-Collingwood and Davie Village. We have a brilliant realtor helping us which is essential.
The study visa is the best and only route into Canada for us as we are not young enough for the other visas.
I need to upgrade my qualifications as I originally trained in 1988 and technology has moved on in leaps and bounds since then. I've been self employed for a long time and want to work for a bigger company again, so even if I was to look for new work in England they would want candidates to be fluent in modern methods. (I work in fashion). The Canadian qualification is internationally recognised and even if we return to Britain at the end of the 2 years, what a brilliant place to have studied....hopefully we'll qualify for the CWPP which could give us a further 2 years.
We've been in Vancouver doing our research and seen lots of properties in East Hastings, Grandview, Fairview, Kensington, Renfrew-Collingwood and Davie Village. We have a brilliant realtor helping us which is essential.
The study visa is the best and only route into Canada for us as we are not young enough for the other visas.
I need to upgrade my qualifications as I originally trained in 1988 and technology has moved on in leaps and bounds since then. I've been self employed for a long time and want to work for a bigger company again, so even if I was to look for new work in England they would want candidates to be fluent in modern methods. (I work in fashion). The Canadian qualification is internationally recognised and even if we return to Britain at the end of the 2 years, what a brilliant place to have studied....hopefully we'll qualify for the CWPP which could give us a further 2 years.
Apr 25th 2016, 2:41 pm
#14
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Re: Can we buy a place to live in while studying?
That is extremely helpful information, thanks Siouxie. It seems that CGT is not payable on your principle Canadian home (that you're living in) when you sell as long as you are resident in Canada at that time.
I now find out if it counts as a principle home if we own a house in the UK at the same time.
I now find out if it counts as a principle home if we own a house in the UK at the same time.
Apartments are harder to sell than detached homes. If there is a downturn in the market, you could lose big time. You will have to pay property transfer tax on the purchase and when you sell, realty fees (on 350K $10000 +GST) and legal as well. On a 2 year permit, buying property to live in, is nuts.
Add on strata fees (often $250 to $300 a month) and residents obligations to the strata and strata reserves and anticipated major projects. Older buildings may require significant upgrades. Vancouver Leaky Condo scandal. Caught a few out for lots of $$$$$ Check title, leasehold or freehold, who owns the land, the strata or another party i.e. native, another individual, or corporation.
Last edited by Aviator; Apr 25th 2016 at 2:52 pm.
Apr 25th 2016, 6:30 pm
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Re: Can we buy a place to live in while studying?
But your home in the UK ceases to be your principle residence, so if you were to not move back and live in it, that would be subject to CGT ( UK and possibly Canada). If your house in Canada ceases to be your principle residence i.e. you move out of Canada before you are able to sell it, then lots of tax is payable (look up CGT and departure tax).
Yes, I am aware of that now as Siouxsies links on the subject are very clear. Canada and UK have a tax treaty where you don't pay tax twice. We would have to sell the Canada home before leaving or get taxed. Same with selling uk home if we are in Canada, it's subject to CGT, but really complicated. I want to get all the information so we can make the decision based on facts.
Apartments are harder to sell than detached homes. If there is a downturn in the market, you could lose big time. You will have to pay property transfer tax on the purchase and when you sell, realty fees (on 350K $10000 +GST) and legal as well.
On a 2 year permit, buying property to live in, is nuts.
Add on strata fees (often $250 to $300 a month) and residents obligations to the strata and strata reserves and anticipated major projects. Older buildings may require significant upgrades. Vancouver Leaky Condo scandal. Caught a few out for lots of $$$$$ Check title, leasehold or freehold, who owns the land, the strata or another party i.e. native, another individual, or corporation.
Yes, I am aware of that now as Siouxsies links on the subject are very clear. Canada and UK have a tax treaty where you don't pay tax twice. We would have to sell the Canada home before leaving or get taxed. Same with selling uk home if we are in Canada, it's subject to CGT, but really complicated. I want to get all the information so we can make the decision based on facts.
Apartments are harder to sell than detached homes. If there is a downturn in the market, you could lose big time. You will have to pay property transfer tax on the purchase and when you sell, realty fees (on 350K $10000 +GST) and legal as well.
On a 2 year permit, buying property to live in, is nuts.
Add on strata fees (often $250 to $300 a month) and residents obligations to the strata and strata reserves and anticipated major projects. Older buildings may require significant upgrades. Vancouver Leaky Condo scandal. Caught a few out for lots of $$$$$ Check title, leasehold or freehold, who owns the land, the strata or another party i.e. native, another individual, or corporation.