Information about Canada

  



Introduction
Regional Locations
The buying Process
Legal Issues to Consider
Financing a property purchase
Investment Potential



Introduction:


Canada is a large country located on the continent of North America and occupies pretty much all of the Northern half of North America. Its region extends from the Atlantic Ocean all the way across to the Pacific Ocean. Canada's southern border runs all the way along from West to East along the United States and extends north as far as the Arctic Ocean.

Canada has a diverse makeup of 10 provinces and three territories which operate both a parliamentary democracy as well as a constitutional monarchy speaking both French and English. Canada also has a largely diverse economy which up until recent years has been heavily reliant on natural resources and trade with its closest counterpart the United States.

The easiest way to look at Canada's physical makeup would be to divide the areas accordingly,

Western Canada

British Columbia and the three Prairie provinces, namely Alberta, Saskatchewan and Manitoba.

Eastern Canada

Quebec, Ontario, New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador.

Northern Canada

Yukon, Nunavut and the Northwest Territories.

Canada is the second largest country in the world after Russia and has a coastline of 243,000 kilometres, which gives you an idea of its huge size. Canada is also considered to be one of the world's top 10 trading nations which also make it one of the wealthiest nations in the world. Canada's economy has grown extremely quickly over the course of the last 15 years and unemployment has remained low.

Did you know?

That Canada has the second largest oil reserves in the world after Saudi Arabia. Canada is also a net exporter of energy, is one of just a handful of countries in the whole world capable of boasting such a feat. Atlantic Canada also has vast deposits of Natural Gas offshore with huge Oil and Gas resources centred in Alberta.

Regional Locations:

Alberta


         

Often referred to as Canada's energy province, Alberta is the fourth largest province and forms one of the three Prairie Provinces; it is located east of British Columbia and just south of the Northwest Territories. Alberta is home to around 3.5 million people and has a flourishing expatriate community with people coming from mainly the UK, Europe and South East Asia. Alberta is the main producer of Coal in Canada but also has resources of oil and natural gas. Half of Alberta is covered by thick forest.

 

British Columbia


         

 

British Columbia is located to the west of Canada and is the third largest province. Home to Vancouver which is also the third largest city in Canada, British Columbia has a slightly bigger population of around 5 million people with around 2.5 million residing in Vancouver alone. British Columbia is also home to a large Foreign Community with around 40,000 new immigrants arriving each year. Beaches, mountains and national parks attract thousands of visitors to British Columbia every year.

Manitoba

 
         

Located in the Centre of Canada directly North of the United States, Manitoba is another one of the three Prairie Provinces and is to approximately 2 million people. The first people to settle in Manitoba arrived through Hudson Bay in Northern Manitoba. Manitoba is known as the land of 100,000 lakes with Lake Winnipeg being one of the three largest.

 

New Brunswick

 
         

New Brunswick is the third smallest province in Canada and is one of the four Atlantic Provinces; it is also the oldest city in Canada. Being a lot smaller New Brunswick has a population of just under a million people with majority living in and around its largest city Saint John. New Brunswick has a large French and British population.

 

Newfoundland and Labrador

         


Newfoundland is another of the four Atlantic Provinces, Located in the East and surrounded by the Gulf of st Lawrence, the Atlantic Ocean and the Arctic Ocean. Mainly comprised of small fishing villages, Newfoundland has a mere population of just over half a million people many of which are from Britain and Ireland. 

 

Northwest Territories

 

The Northwest Territories is the second largest of the three territories in Canada, located just south of the Arctic Ocean the NW Territories, and despite it being the second largest of the three territories it has a mere population of around 50,000 people, most of which are of Aboriginal descent.

 

Nova Scotia

 

         

Nova Scotia and its 3800 coastal islands have a population of just over a million people. Nova Scotia or New Scotland as it is directly translated is popular among Canadians and Foreigners from the UK and Europe. Nova Scotia interestingly enough is virtually entirely surrounded by water and offers some incredible features including nearly 7,500 kilometres of rocky coastline, 3000 lakes and huge forests.

 

Nunavut

 

Nunavut is the third and largest territory in Canada occupying approximately one fifth of the land in Canada. Majority of Nunavut's tiny 40,000 population is of Aboriginal descent. The small towns located here are often difficult to get to and focus on fishing, hunting and fur trading for survival and are popular among hikers and campers.

Ontario

 

         

Ontario is Canada's second largest province with a population of nearly 14 million people. Ontario's capital city is Toronto which is well known for its large financial district and stock exchange. Interestingly enough, Ottawa is also located in southern Ontario and is the capital of Canada. Recent statistics have shown that over half the people who live in Toronto were born in other countries. Niagara Falls is also located in Ontario making it high up on many a tourists list of places to visit.

 

Prince Edward Island

 

Prince Edward Island or the Garden Province as it is known is the smallest province in Canada with approximately 75 % of its 150,000 population being of Scotish and Irish Decent.  The easiest way to get to Prince Edward Island is by ferry boat from

Nova Scotia.

 

Quebec

 

         

Quebec is the largest province in Canada and is predominantly French speaking with a population of nearly 9 million people. The largest city in Quebec is Montreal which is home to around 4 million people. Montreal has a large foreign population with most immigrants coming from France, southern Europe and the UK.

 

Yukon Territory

 

          

Yukon Territory is the smallest of the three Canadian territories. Most of The Yukon Territories 35,000 population live in the Capital city Whitehorse. Home to the highest mountain in Canada "mount Logan" is popular with hikers and rock climbers who come to test their skills in the great outdoors.

The buying Process:

There are hardly any restrictions to buying property in Canada as a Foreigner; in fact the process is relatively straightforward and simple.

 

The Estate Agent will prepare the offer to purchase; it is usual practise to present an offer to purchase along with a 10 percent deposit. At this point the seller has the option to accept, reject or make the buyer a counter offer.

 

Once the offer has been accepted, a lawyer will be appointed to prepare the relevant documentation; this will usually include the conditions of the sale along with the completion dates. The lawyer will also be responsible for registering the property in the names of the new buyers, ensuring the relevant land surveys are carried out as well as ensuring that tax clearance checks and title deed checks are carried out and are clean.

 

Once satisfied, the lawyer will prepare a Statement of Adjustment confirming the purchase prise and the particulars of payment. Once the lawyer has received all of the funds he will arrange to pay the seller before registering the property in the buyer's name.

Legal Issues to Consider:

Fees and Taxes

 

As a general rule when purchasing property abroad, it is a good idea to apportion up to 10% of the purchase price to cover all legal fees and taxes.

 

Newly constructed properties are likely to require a 6 percent Goods and Services Tax included in the purchase price. In some cases it is possible to apply for a partial rebate on the Goods and Services Tax if the property is going to be your primary place of residence.

 

Estate Agent fees are usually negotiable but will range from between 3 and 7 percent of the property price. Most Estate agents will charge 7 percent on the first CAD $100,000 and then 3 percent on everything thereafter.

Financing a property purchase:

Financing an overseas property purchase is easy when you deal with professionals...

 

If you are thinking about buying an overseas property, then you also need to be thinking about the best way to finance your purchase. At Sublime Location we work closely with a number of specialised lenders who have all been carefully selected based on trust, experience and reputation.

 

Selecting the right product and making the right decision when it comes to financing a large investment could save thousands.

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Investment Potential:

House prices in Canada may have slowed in the in recent years but have still seen more growth the US. In the last 10 years house prices have increased by nearly 90 percent. Good employment opportunities and high wages have kept the demand for living in Canada high.

 

According to recent statistics there are three main contributing factors which have continued to drive strong house price growth in Canada, strong economic performances, high immigration levels and most importantly low mortgage rates. Current borrowing costs in Canada are around 3% which is significantly lower than countries like South Africa, Australia and New Zealand where interest rates are pushing 10%.

 

With relatively low mortgage rates and financial innovations, the mortgage market has expanded rapidly over the last five years, with more than 10% annual growth rate. The mortgage market is also expected to increase by 9% in 2008 and another 8.5% in 2009.

 

If you are looking to invest in property in Canada it is worth monitoring the market by looking at related data published by the Canadian Mortgage and Housing Corporation as well as statistics and forecasts published by the Canadian Real Estate Association which forecasts on future house sales activities. General economic data is also produced by the Reserve Bank of Canada. 

 

On average apartments in Toronto have yields of around 6.4% whereas apartments in Montreal which are slightly cheaper have bigger yields of around 6.8%.

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