Buying a property from the UK
Feb 14th 2006, 7:27 pm
#1
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Thread Starter
Joined: Feb 2006
Location: Bristol, UK
Posts: 132
Buying a property from the UK
Have any of you bought a property in Canada from the UK?
I am considering buying a ski chalet / holiday home but am not sure where to start.
Should I go for a Canadian Mortgage or get a UK one (when I leave the UK, I will be cutting all ties and never returning)?
Am I better off waiting for the exchange rate to improve?
Are the 'Not in Canada' taxes overly prohibitive?
Would any mortgage be based solely on the forecasted return on investment or is other income taken into account? If the ski chalet / holiday home was also going to be my primary residence, would income be taken into account as well as the ROI?
Is it possible to get a mortgage to purchase land and build a house (from outside Canada)?
I would be grateful for any advice, information or warnings
Cheers
Jez
I am considering buying a ski chalet / holiday home but am not sure where to start.
Should I go for a Canadian Mortgage or get a UK one (when I leave the UK, I will be cutting all ties and never returning)?
Am I better off waiting for the exchange rate to improve?
Are the 'Not in Canada' taxes overly prohibitive?
Would any mortgage be based solely on the forecasted return on investment or is other income taken into account? If the ski chalet / holiday home was also going to be my primary residence, would income be taken into account as well as the ROI?
Is it possible to get a mortgage to purchase land and build a house (from outside Canada)?
I would be grateful for any advice, information or warnings
Cheers
Jez
Feb 14th 2006, 10:21 pm
#2
BE Enthusiast
Joined: Sep 2004
Location: Alberta
Posts: 686
Re: Buying a property from the UK
Originally Posted by JezHarper
Have any of you bought a property in Canada from the UK?
I am considering buying a ski chalet / holiday home but am not sure where to start.
Should I go for a Canadian Mortgage or get a UK one (when I leave the UK, I will be cutting all ties and never returning)?
Am I better off waiting for the exchange rate to improve?
Are the 'Not in Canada' taxes overly prohibitive?
Would any mortgage be based solely on the forecasted return on investment or is other income taken into account? If the ski chalet / holiday home was also going to be my primary residence, would income be taken into account as well as the ROI?
Is it possible to get a mortgage to purchase land and build a house (from outside Canada)?
I would be grateful for any advice, information or warnings
Cheers
Jez
I am considering buying a ski chalet / holiday home but am not sure where to start.
Should I go for a Canadian Mortgage or get a UK one (when I leave the UK, I will be cutting all ties and never returning)?
Am I better off waiting for the exchange rate to improve?
Are the 'Not in Canada' taxes overly prohibitive?
Would any mortgage be based solely on the forecasted return on investment or is other income taken into account? If the ski chalet / holiday home was also going to be my primary residence, would income be taken into account as well as the ROI?
Is it possible to get a mortgage to purchase land and build a house (from outside Canada)?
I would be grateful for any advice, information or warnings
Cheers
Jez
As far as I am aware, you need the Canadian Social Insurance Number details before you will get a Canadian based loan of any type.
One can purchase land / property whilst in Canada as a Temporary Resident.
You will be asked if it will be occupied permanently for more then six months of the year, if not then it draws roughly twice the property taxes(like UK Community Charge).
You will need to make sure you have it insured correctly, it is cheap compared to the UK, more likely to burn down or blow down then be vandalised actually.
One can enlist the local realty agent to let it for you in ya absence - they are very much better at their job, then UK Estate Agents - ooops - are you one ?
Feb 14th 2006, 11:53 pm
#3
West Coast Enthusiast
Joined: Nov 2004
Location: Sunshine Coast
Posts: 332
Re: Buying a property from the UK
Hi Jez,
de-cloaking as a realtor
It is perfectly possible to buy in Canada as a non-resident and even without seeing the property. We have helped people do so before - here in Vancouver.
You can get a loan from a financial institution in Canada based on your putting down 35%. I don't believe you would need a SIN before doing so - many non-resident owners would not have one.
You may want to think through what it is you want to achieve by buying somewhere first. For example a number of our clients have hedged against possible property price rises in Canada by buying something that has not yet been built - choosing something with a completion date far enough in the future that they anticipate being there on completion.
This way they pay the deposit up front (and pre-arrange a mortgage for the completion). This is one strategy.
If you are looking for recreational property that you can use yourself and can get some income from when you are not using it, then you do need to get a realtor in Canada that you can trust and some professional advice on the financial viability of such an investment. Consider where visitors from the resort will come from and whether or not it has year round appeal. (And lots of other questions... as in Steve's comments )
I believe it is the research that makes the difference. Buying and even renting out can all be achieved fairly easily - even long distance. Just make sure you know what you want and do enough research to be reasonably certain you can achieve it.
Warmly,
Frank
de-cloaking as a realtor
It is perfectly possible to buy in Canada as a non-resident and even without seeing the property. We have helped people do so before - here in Vancouver.
You can get a loan from a financial institution in Canada based on your putting down 35%. I don't believe you would need a SIN before doing so - many non-resident owners would not have one.
You may want to think through what it is you want to achieve by buying somewhere first. For example a number of our clients have hedged against possible property price rises in Canada by buying something that has not yet been built - choosing something with a completion date far enough in the future that they anticipate being there on completion.
This way they pay the deposit up front (and pre-arrange a mortgage for the completion). This is one strategy.
If you are looking for recreational property that you can use yourself and can get some income from when you are not using it, then you do need to get a realtor in Canada that you can trust and some professional advice on the financial viability of such an investment. Consider where visitors from the resort will come from and whether or not it has year round appeal. (And lots of other questions... as in Steve's comments )
I believe it is the research that makes the difference. Buying and even renting out can all be achieved fairly easily - even long distance. Just make sure you know what you want and do enough research to be reasonably certain you can achieve it.
Warmly,
Frank
Originally Posted by steve of 5-0
Take your next vacation in the area you are interested in, armed with info for one thing from www.mls.ca
As far as I am aware, you need the Canadian Social Insurance Number details before you will get a Canadian based loan of any type.
One can purchase land / property whilst in Canada as a Temporary Resident.
You will be asked if it will be occupied permanently for more then six months of the year, if not then it draws roughly twice the property taxes(like UK Community Charge).
You will need to make sure you have it insured correctly, it is cheap compared to the UK, more likely to burn down or blow down then be vandalised actually.
One can enlist the local realty agent to let it for you in ya absence - they are very much better at their job, then UK Estate Agents - ooops - are you one ?
As far as I am aware, you need the Canadian Social Insurance Number details before you will get a Canadian based loan of any type.
One can purchase land / property whilst in Canada as a Temporary Resident.
You will be asked if it will be occupied permanently for more then six months of the year, if not then it draws roughly twice the property taxes(like UK Community Charge).
You will need to make sure you have it insured correctly, it is cheap compared to the UK, more likely to burn down or blow down then be vandalised actually.
One can enlist the local realty agent to let it for you in ya absence - they are very much better at their job, then UK Estate Agents - ooops - are you one ?
Feb 15th 2006, 2:03 am
#4
Forum Regular
Joined: Aug 2005
Location: Kelowna, BC
Posts: 295
Re: Buying a property from the UK
If you re buying in BC don't forget the tax, 1% up to $200,000 and 2% on the amount above that. You have to pay this if you haven't lived in BC for a year. Apparently you can get around paying it if it is your first mortgage (anywhere in the world) and the value of the property you are buying is under a certain amount.
You will also need a full printout of your credit report and your credit rating (a number between 1 and 1000). You need to get this from somewhere like Experian. Plus bank statements from the UK, showing you pay your bills. We were also asked for a reference each from either our last employer or our bank.
You will also need a full printout of your credit report and your credit rating (a number between 1 and 1000). You need to get this from somewhere like Experian. Plus bank statements from the UK, showing you pay your bills. We were also asked for a reference each from either our last employer or our bank.
Originally Posted by Frank'n Sense
Hi Jez,
de-cloaking as a realtor
It is perfectly possible to buy in Canada as a non-resident and even without seeing the property. We have helped people do so before - here in Vancouver.
You can get a loan from a financial institution in Canada based on your putting down 35%. I don't believe you would need a SIN before doing so - many non-resident owners would not have one.
You may want to think through what it is you want to achieve by buying somewhere first. For example a number of our clients have hedged against possible property price rises in Canada by buying something that has not yet been built - choosing something with a completion date far enough in the future that they anticipate being there on completion.
This way they pay the deposit up front (and pre-arrange a mortgage for the completion). This is one strategy.
If you are looking for recreational property that you can use yourself and can get some income from when you are not using it, then you do need to get a realtor in Canada that you can trust and some professional advice on the financial viability of such an investment. Consider where visitors from the resort will come from and whether or not it has year round appeal. (And lots of other questions... as in Steve's comments )
I believe it is the research that makes the difference. Buying and even renting out can all be achieved fairly easily - even long distance. Just make sure you know what you want and do enough research to be reasonably certain you can achieve it.
Warmly,
Frank
de-cloaking as a realtor
It is perfectly possible to buy in Canada as a non-resident and even without seeing the property. We have helped people do so before - here in Vancouver.
You can get a loan from a financial institution in Canada based on your putting down 35%. I don't believe you would need a SIN before doing so - many non-resident owners would not have one.
You may want to think through what it is you want to achieve by buying somewhere first. For example a number of our clients have hedged against possible property price rises in Canada by buying something that has not yet been built - choosing something with a completion date far enough in the future that they anticipate being there on completion.
This way they pay the deposit up front (and pre-arrange a mortgage for the completion). This is one strategy.
If you are looking for recreational property that you can use yourself and can get some income from when you are not using it, then you do need to get a realtor in Canada that you can trust and some professional advice on the financial viability of such an investment. Consider where visitors from the resort will come from and whether or not it has year round appeal. (And lots of other questions... as in Steve's comments )
I believe it is the research that makes the difference. Buying and even renting out can all be achieved fairly easily - even long distance. Just make sure you know what you want and do enough research to be reasonably certain you can achieve it.
Warmly,
Frank
Feb 15th 2006, 2:21 am
#5
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Joined: Sep 2005
Location:
Posts: 158
Re: Buying a property from the UK
dont buy anything without seeing it and thoroughly researching the area you wouldnt do it in the uk would you mls.ca etc are ok for rough price guides but you need to see the houses in the flesh sort of speak
Feb 15th 2006, 8:37 am
#6
Forum Regular
Thread Starter
Joined: Feb 2006
Location: Bristol, UK
Posts: 132
Re: Buying a property from the UK
Originally Posted by Colsgirl
If you re buying in BC don't forget the tax, 1% up to $200,000 and 2% on the amount above that. You have to pay this if you haven't lived in BC for a year. Apparently you can get around paying it if it is your first mortgage (anywhere in the world) and the value of the property you are buying is under a certain amount.
You will also need a full printout of your credit report and your credit rating (a number between 1 and 1000). You need to get this from somewhere like Experian. Plus bank statements from the UK, showing you pay your bills. We were also asked for a reference each from either our last employer or our bank.
You will also need a full printout of your credit report and your credit rating (a number between 1 and 1000). You need to get this from somewhere like Experian. Plus bank statements from the UK, showing you pay your bills. We were also asked for a reference each from either our last employer or our bank.
Feb 15th 2006, 8:40 am
#7
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Thread Starter
Joined: Feb 2006
Location: Bristol, UK
Posts: 132
Re: Buying a property from the UK
Originally Posted by steals
dont buy anything without seeing it and thoroughly researching the area you wouldnt do it in the uk would you mls.ca etc are ok for rough price guides but you need to see the houses in the flesh sort of speak
I know this is a big risk, but I like life on the edge
Feb 15th 2006, 8:45 am
#8
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Thread Starter
Joined: Feb 2006
Location: Bristol, UK
Posts: 132
Re: Buying a property from the UK
Originally Posted by steve of 5-0
Take your next vacation in the area you are interested in, armed with info for one thing from www.mls.ca
As far as I am aware, you need the Canadian Social Insurance Number details before you will get a Canadian based loan of any type.
One can purchase land / property whilst in Canada as a Temporary Resident.
You will be asked if it will be occupied permanently for more then six months of the year, if not then it draws roughly twice the property taxes(like UK Community Charge).
You will need to make sure you have it insured correctly, it is cheap compared to the UK, more likely to burn down or blow down then be vandalised actually.
One can enlist the local realty agent to let it for you in ya absence - they are very much better at their job, then UK Estate Agents - ooops - are you one ?
As far as I am aware, you need the Canadian Social Insurance Number details before you will get a Canadian based loan of any type.
One can purchase land / property whilst in Canada as a Temporary Resident.
You will be asked if it will be occupied permanently for more then six months of the year, if not then it draws roughly twice the property taxes(like UK Community Charge).
You will need to make sure you have it insured correctly, it is cheap compared to the UK, more likely to burn down or blow down then be vandalised actually.
One can enlist the local realty agent to let it for you in ya absence - they are very much better at their job, then UK Estate Agents - ooops - are you one ?
I had already spoken to a realtor in Pemberton, BC, so I know that I *can* buy a property in Canada and get a Canadian Mortgage without a SIN card or being a resident, but the information about the taxes gives me a very good pointer to research further. Thank you very much.
Cheers
Jez
Feb 15th 2006, 8:52 am
#9
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Thread Starter
Joined: Feb 2006
Location: Bristol, UK
Posts: 132
Re: Buying a property from the UK
Originally Posted by Frank'n Sense
Hi Jez,
de-cloaking as a realtor
It is perfectly possible to buy in Canada as a non-resident and even without seeing the property. We have helped people do so before - here in Vancouver.
You can get a loan from a financial institution in Canada based on your putting down 35%. I don't believe you would need a SIN before doing so - many non-resident owners would not have one.
You may want to think through what it is you want to achieve by buying somewhere first. For example a number of our clients have hedged against possible property price rises in Canada by buying something that has not yet been built - choosing something with a completion date far enough in the future that they anticipate being there on completion.
This way they pay the deposit up front (and pre-arrange a mortgage for the completion). This is one strategy.
If you are looking for recreational property that you can use yourself and can get some income from when you are not using it, then you do need to get a realtor in Canada that you can trust and some professional advice on the financial viability of such an investment. Consider where visitors from the resort will come from and whether or not it has year round appeal. (And lots of other questions... as in Steve's comments )
I believe it is the research that makes the difference. Buying and even renting out can all be achieved fairly easily - even long distance. Just make sure you know what you want and do enough research to be reasonably certain you can achieve it.
Warmly,
Frank
de-cloaking as a realtor
It is perfectly possible to buy in Canada as a non-resident and even without seeing the property. We have helped people do so before - here in Vancouver.
You can get a loan from a financial institution in Canada based on your putting down 35%. I don't believe you would need a SIN before doing so - many non-resident owners would not have one.
You may want to think through what it is you want to achieve by buying somewhere first. For example a number of our clients have hedged against possible property price rises in Canada by buying something that has not yet been built - choosing something with a completion date far enough in the future that they anticipate being there on completion.
This way they pay the deposit up front (and pre-arrange a mortgage for the completion). This is one strategy.
If you are looking for recreational property that you can use yourself and can get some income from when you are not using it, then you do need to get a realtor in Canada that you can trust and some professional advice on the financial viability of such an investment. Consider where visitors from the resort will come from and whether or not it has year round appeal. (And lots of other questions... as in Steve's comments )
I believe it is the research that makes the difference. Buying and even renting out can all be achieved fairly easily - even long distance. Just make sure you know what you want and do enough research to be reasonably certain you can achieve it.
Warmly,
Frank
I am looking for a property to let out throughout the year to give a continued return on investment, rather than purchasing an unbuilt property to buy and sell once it is built (although with all the building going on at Blue Mountain I am going to take a look at what they have got left to see if there is anything that catches my eye
)The two places that I am considering both have year round appeal but I don't know if the market is saturated, I would need to speak to letting agencies or other owners in the area, So I suppose that is my next step.
Do you know a good place to start to find out more about the 'not in Canada' taxation system?
Thanks for your reply
Jez
Feb 16th 2006, 2:08 am
#10
Retired
Joined: Apr 2004
Posts: 34,649
Re: Buying a property from the UK
Originally Posted by JezHarper
Do you know a good place to start to find out more about the 'not in Canada' taxation system?
You also need to check if owning a property in Canada could make you Canadian tax resident, plus how UK/Canada double tax agreement works.
