A guide for real estate investors in Canada

Posted by Kate Royston on January 18th, 2019

The most discussed topics for the real estate of Canada has be the cash flows. There are a lot of real estate investors who are just beginners are they are confused whether real estate investment is good or bad. The question arises in the mind of the investor is that whether the property would be producing the positive cash flows or not?

If you don’t live in Canada but you are eager to learn about Canada immigration investor visa then this guide is for you. It is true that the residential prices are going up in Canada due to the increasing opportunities and the high demand. But still just making the question of the positive cash flow for an investment wouldn’t be right and it will be too limited too.

First things first is that how much you want to put in the real estate. Majority of the investing beginners don’t really understand that you could buy a property in Canada with 10 percent or even 5 per cent at time since 2006. There was a time when the investors were putting so much like 25% or 35% on the property which was serving as a down payment. It eventually resulted in low mortgages and thus that allowed to lower the carrying costs and a higher frequency of securing properties producing the positive cash flows.

The beginner investors can now invest in the real estate with down payment as low as 5% or 10% through the standard mortgage programs which are being offered by the Canadian banks. Secondly, comes the question of what are the financial goals of the investor and then how the investor is using the tax deductions. The investors who haven’t invested before and doing it for the first time have no idea about the tax deductions which are available to them.

By using the deducted tax fees, which includes legal fees, property taxes, insurance fees, land transfer fees, maintenance fees and other, a property for which the investor is worried about the break even, can also earn something good on it.

The tax deductions can also be written off when compared to the other income and that would also produce the refunds.

The depreciation would also be serving the same purpose to the investor. One of the biggest mistake that the investment beginners make is that they don’t hire a professional accountant who would be taking care of their taxes. A professional real estate would be able to do your tax returns and the money that they are costing you would be doubled in the form of profit when they would do their magic. The people who are rich even use professionals and that is how they make the most of their taxes.