Canada Property Investment / Canadian $ As Bht & £ Hedge?

[mccw]

Thoughts and opinions on the above please and welcome

Thanks

[mccw]

How is the Canadian politics?

Loony lefties likely to impose some crazy high taxes and such?

[mccw]

A run down of the existing taxes, laws and liabilities would be good. Things to be aware of like how long / expensive to evict no paying tenants etc?

[mccw]

I like Canada for a long term due to its rescourses, agriculture / land size to population ratio and education levels; but it still faces same issues of Un affordable benefits, pensions and entitlements , this is my biggest concern.

[mccw]

Specifically I'm looking at "plexes" in Toronto yield 8+ %

[mccw]

http://www.investopedia.com/articles/mortgages-real-estate/09/owning-real-estate-canada.asp

Some infos in case any one interested.

[mccw]

The 25% tax on gross rental yield just kills it

[yoshiwara]

As a longer term bet Canada has its attractions. The key test however re property is that there is an overhead I consider re commitment to spending some time there. If you have that then OK. If not then stand back.

[mccw]

As a longer term bet Canada has its attractions. The key test however re property is that there is an overhead I consider re commitment to spending some time there. If you have that then OK. If not then stand back.

You mean how pleasant a place it is / u like to visit for check and deal when needed?

Another negative for me I didn't mention is how far out of the way it is for me. Plus I've never really had the urge to visit Canada; just read about it + plus my friend is resident and a property broker , keeps trying to sell me things lol. But he'd be handy to keep eye my place and save me agents fees. Plus make the occasional trip there not a total chore.

[yoshiwara]

As a longer term bet Canada has its attractions. The key test however re property is that there is an overhead I consider re commitment to spending some time there. If you have that then OK. If not then stand back.

You mean how pleasant a place it is / u like to visit for check and deal when needed?

Another negative for me I didn't mention is how far out of the way it is for me. Plus I've never really had the urge to visit Canada; just read about it + plus my friend is resident and a property broker , keeps trying to sell me things lol. But he'd be handy to keep eye my place and save me agents fees. Plus make the occasional trip there not a total chore.

If there is no emotional link, don't bother. IMHO need to visit otherwise no.

[geriatrickid]

How is the Canadian politics?

Loony lefties likely to impose some crazy high taxes and such?

The conservative federal government is hardly leftist. Much of the tax policy for real estate investment is however, determined by each province. some provinces are more liberal on investment tax policies, while other near bankrupt provinces (Ontario, Quebec, British Columbia) have some very nasty tax policies.

Edited April 6, 2013 by geriatrickid

[geriatrickid]

I like Canada for a long term due to its rescourses, agriculture / land size to population ratio and education levels; but it still faces same issues of Un affordable benefits, pensions and entitlements , this is my biggest concern.

I disagree in part.

The CPP is in much better condition than most of the other western countries. The Unemployment Insurance fund is running at a surplus. The provincial pension plans have now recovered with many posting large ROIs. The federal government has also increased the age of pension to 67 (to be phased in).The federal government is also shedding thousands of public sector jobs. Many provinces are reducing social benefits. Entitlements are often clawed back for people over a more than modest income. Compared to other western countries, Canada is ahead of the curve . More importantly, Canada is one of the few countries in the world with a secure stable banking system. Only Sweden has a more stable banking system according to the last review. Australia is also one of the other safe havens.

Canada does not have estate taxes. Compare that to the horrific rates in the USA and UK. Corporate tax rates are competitive with the rest of the developed world. it is the only country in the west with a guaranteed relatively affordable energy supply, one of the only countries in the world with secure excess clean water, has some of the worlds largest potash supplies guaranteeing agricultural output sustainability and an abundant natural resource inventory. The benefits and taxes levied upon Canadians is the cost of social peace, prosperity, and order.

The biggest problem for any country this century will be access to affordable energy and clean water. Much of europe does not have this access. Thailand may have water, but it's energy supplies are perilous. I wouldn't want to be in Thailand in 30 years when the gas has run out and oil has hit a price that thailand cannot afford. The reality is that the EU is a dying region, dependent upon foreign energy suppliers, forced to grovel at the feet of the Russians and Middle eastern energy suppliers.

The USA is in decline. Aside from the nordic countries, only Canada can offer a stable environment coupled with the world's highest quality of life. I'd gladly move to Denmark, for the most beautiful people on the planet and a place where the people are considered the happiest in the world, except the taxes would kill me.

Edited April 6, 2013 by geriatrickid

[geriatrickid]

Specifically I'm looking at "plexes" in Toronto yield 8+ %

GTA real estate prices are in for an adjustment according to the real estate investment reports.

Once mortgage rates increase, I think it will be a buyer's market as many investors will not be able to afford the mortgages.

[bostonboy]

Specifically I'm looking at "plexes" in Toronto yield 8+ %

Toronto has had the most condos built over the last 3 years than any city in the world

Prices are coming down in Canada, the unemployment #'s were bad yesterday

I live in Vancouver, unfortunately i didn't buy 7 years ago when i moved here and now afraid that i see a big correction in Vancouver coming

[mccw]

Thanks for the replys.

Regarding mortgage rates rising; its an interetesting question I've been giving much thought to because of my uk property rentals biz. I'm leaning to the side of thoughts saying that the central banks will just keep on supplying cheap liquidity, because they know any much rise will collapse the whole economy. I think it more likely there is a stagnation or mild 1-2% price growth while the real world purchasing power of the cash value of the asset declines at around 5% but maybe dramaticly more as the money printing continues. So if I'm making 8-10% its still a slight net profit/ growth after adjustment.

In UK I think there could be a dip in property market, not because of mortgage rate rises but because of a rise in the cost of living, coupled with economic contraction/ job losses & salary cuts etc. The cost of living problem is presenting itself already and the economic contraction may well be on the way, not just uk but globally. How bad it will be no body knows for sure but i feel property to be safer than cash in the bank with at least a chance of better income return. Canada maybe better placed for the longer term coming out the other side?