Key Factors Affecting Real Estate Market in Canada
In Canada, there are no residence or citizenship requirements for purchasing or holding property. You can live in Canada temporarily, but if you want to stay longer or become a permanent resident, you must meet immigration standards. For those who are interested in buying property in Canada, we have listed the key factors affecting the real estate market.
Land transfer tax
This is one of the main topics that many customers are concerned about. Some investors believe that this market is punitive and arbitrary. Tenants are responsible for paying for repairs, utilities, and property taxes. This figure is expected to be around 2% of the total cost of a house. Land transfer taxes, commissions, and taxes are just a few of the extra costs of buying a home in Canada. Land transfer taxes do not exist in Alberta, making it the only province in Canada without them.
Value of the Canadian dollar
The devaluation of the Canadian dollar can have either a beneficial or harmful impact on this market. Some say that Canadians can save a significant amount of money by reducing their travel expenses when purchasing a home. That is only applicable to Canadians. It's crucial to note that non-residents hold the majority of the country's real estate. The majority of them benefit from the local currency's decreasing trend. When the Canadian currency is strong, property prices are exceedingly high.
These rates are constantly rising. As a result, property prices have increased dramatically in recent decades. In reality, most mortgage brokers and economists are warning investors that high interest rates are on the way in the following years. These rates are governed mainly by the United States' interest rate policy and Federal Reserve, both closely linked to those in Canada.