Non- Resident Investment in Cowichan Valley

The Cowichan Valley is a great place to invest! International buyers are coming in droves from China, South Korea, India and Iran to name a few and they are bringing wealth. Low interest rates, strong immigration and our clean water and air make our area an enviable place to live. As these people congregate in Vancouver it is also allowing many retirees to come to the Island and live the small town country lifestyle. They now have the opportunity to sell their $800,000 dollar home and come here and buy into the $400,000 market and pay off their mortgage or put some money in the bank to live comfortably. For International buyers there are few restrictions on non-residents purchasing Canadian Real Estate. Financing is available for up to 75% of the purchase price of the property and some lenders will offer the best discounted rates to non-resident purchasers. Mortgages in Canada generally have a twenty-five year amortization period and most institutions will guarantee an interest rate for terms ranging from six months to ten years with the interest rate generally increasing the longer the term. The financing must be done in Canada and the folliwng is a list of the general documentation that the banks will require: 1. Bankers reference letter from your current financial institution 2. Confirmation via a three month history of bank statements 3. A personal net worth statement 3. A completed application which a mortgage broker can assist you with (see my list of Friends to find a good broker) 4. 25% down payment as well as 1.5% of the purchase price is a rule of thumb on closing costs which include Legal fees, Property Purchase Tax (BC) is 1% on the first hundred thousand and 2% on the balance Bank appraisal and insurance of the property, GST may be applicable if the property is being sold by or as a business and on new homes. 5. A Canadian bank account from which to deduct the mortgage payments. To open a Canadian Bank account you must be in the Country. 6. Lenders typically want the property to be purchased for investment purposes with the rental income covering the mortgage payment and the taxes.. 7. Also please keep in mind that if you rent the property the rent monies you receive will be suject to a federal withholding tax (income tax) on the gross income. Or yhou can elect to file a Canadian Tax Return to report only the rental income earned in Canada, in which case your taxes are based on the net income from the property. 8. Seek independent legal advice, laws change and certainly tax laws change all the time.

I hope this has been helpful
Sandy