Reasons to invest in Toronto North America’s “Fastest Growing” city
Toronto is one of the fastest growing cities in North America, ranking 5th in population growth over the past 5 years.
Why invest in Toronto?
• Largest population in Canada - Home to 5.6 million people
• One of the 10 most economically powerful cities in the world (Forbes Magazine)
• Centre of Canada’s banking industry – ranked as world’s soundest banking system for the past 5 years in a row (World Economic Forum)
• Toronto ranked #3 city overall in Cities of Opportunity study of economic leaders: PwC
• Strong growth – Toronto now 4th largest city in North America (February 2013)
• Toronto is Canada's banking/financial capital and the home of its principle stock exchange, the Toronto Stock Exchange
Why Toronto Condominiums ?At the heart of Canada’s real estate boom, is Toronto, the nation’s financial center. Home to over 5 million people, Toronto is one of the leading financial centers in the world, having been recognized by the World Economic Forum as the world’s soundest banking system – for the past 5 years in a row. Through the heart of the global financial crisis, condominium prices in Toronto have continued to rise, increasing from a median price of $230,825 to $306,733, a 32% increase. Toronto’s continued population growth and limited available lands have led the Conference Board of Canada to project continued price increases for the foreseeable future. Toronto is one of the greatest cities in the world to do business, consistently ranked at the top when it comes to global competitiveness, innovation and quality of life. Very few cities in the world can offer such multi-sector strength, depth of talent and a driving economic and financial engine.
Investing In Canada For Non-Resident Investors
Here are some factors that make property in Canada (and specifically in the Greater Toronto Area) very attractive for foreign buyers:
Underestimated value and room for growth
Stable political and economic situation
Equal ownership rights for Canadians and non-residents
**Metropolitan Condo Outlook – Winter 2013 – By The Conference Board of Canada and Genworth Canada. The Conference board of Canada is the foremost independent, not-for-profit applied research organization in Canada. Resale Condominium Apartment Market (Toronto)**
Toronto Real Estate Investment vs. The Stock Exchange
This chart is a great example proving the above points and showing how real estate holds up in an economic downturn. It is worth noting that historical trends are also teaching us that economic downturns like the great recession we just went through, will continue to happen more, and wreak greater havoc on our markets.
You should know that non-residents of Canada do not pay any taxes or fees on the funds that they invest into real estate in Canada (if these funds were earned outside Canada).Any owner of the property in Canada pays the property tax, which is the same for Canadians and non-citizens.
There is one difference in paying taxes by a non-Canadian owner. When you sell your property in Canada, you will need to pay taxes for gain capital (the difference between the price when you originally purchased the property and the sale price). However, if by the time you decide to sell your property, you have become a resident of Canada, and this property was your primary residence, you will be exempted from paying taxes for gain capital.
In case of death of a non-Canadian owner, his property will be inherited by his successors. You should know that there is no inheritance tax in Canada, and a successor will need to pay only taxes for gain capital - when he sells the property (if a successor is not a Canadian resident). However, if a successor has a permanent resident status in Canada and the inherited property was his primary residence, he will not be paying this tax.Overall, there are great conditions for investment in property in Canada, and especially in Toronto.