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Us Citizen Buying Condo In Quebec

Discuss anything to do with property law - buying, selling property

Us Citizen Buying Condo In Quebec

Postby Kinsella » Sat Dec 03, 2016 2:13 am

My wife and I would like to buy a particular condo in Quebec -- to lease out for a few years but eventually to move into for about 6 months a year, give or take a month.  Is there a website or publication we should get that will tell us all we need to know about purchasing and leasing, mortgages, taxes for a non-resident, becoming a resident, etc.  Any advice you can give us would be great.  Thanks!
Kinsella
 
Posts: 50
Joined: Fri Jan 17, 2014 12:40 am

Us Citizen Buying Condo In Quebec

Postby katehudson92 » Mon Dec 05, 2016 4:32 pm

Hello Richard. My computer is saying I didn't answer this question...but I have the copy of the answer on file, so I'm not sure what's going on. I'll apologize first of all, if this is the second time you're getting this. I've just cut and pasted the answer below, that I have on file. If you have any further questions, please don't hesitate to let me know. Good luck with your purchase!

Hello Richard, There are a few things to consider when purchasing both a rental property and a property in which you are a non-resident. My suggestions are below; please feel free to email me back should you have any further questions or concerns. Non-resident purchase: A non-resident, for finance purposes, is someone who does not file taxes in Canada. The government's definition is a bit more than that, stating that you must live in Canada for 183 days, and specifically you must not be a resident in any other country, as well as other stipulations, in order to be considered a resident. To deal with the residency issue, you may wish to start with the Revenue Canada website that deals solely with this issue:http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

Aside from this, the actual purchase will be fairly simple – anyone can buy a property in Canada – the 3 issues you will need to most concern yourself with are as follows: 1.   the mortgage - if it is not to be rented out(a vacation condo), then you will easily be able to obtain a mortgage for 65% of the purchase price at current discounted rates, likely without even confirming your income. If it is to be a rental property, then you would likely get a mortgage for a maximum of 50% of the purchase price, still at current best rates and without confirmation of income. This assumes of course, that all the usual details of the application are strong - clean credit, good stability, good networth. As you can see, you do need to be able to put a fair amount towards the purchase from your own funds.

As an aside, it's my understanding that Quebec has rather different laws than the other provinces, in regards to the signing of legal documents – you will need to physically be in the province of Quebec, to sign the mortgage documents(as opposed to the Quebec lawyer/notary emailing you the documents, and you taking them to your local solicitor/notary for signing, and couriering back to Quebec). 2.   the maintenance – logistically, it might behove you to engage a property management company while you are leasing your condo; they not only find renters, but they take care of the property on your behalf, for a percentage of the rental income.  You should also familiarize yourself with Quebec’s laws regarding landlords – insofar as what your responsibilities are, etc. A real estate lawyer would be a good person to check with, on this subject.

3.   the sale – should you ever decide to sell, you will incur capital gains taxes.  Tax laws change frequently, but it would be an excellent idea to contact an accountant(and/or real estate lawyer) to find out what will happen, what your costs will be, etc. You should do this prior to buying – yes, you may not plan on ever selling – but 10 years from now, you may find your dream condo right next door, and then everything will change. An accountant is the absolute expert on tax laws…and a real estate lawyer will be able to give you advice on who should go on title, and what effect it will have if one vs both of you are on title at the time of sale. Both are well worth the hundreds of dollars you may need to spend, asking for their advice. It will perhaps save you thousands and thousands of dollars, years from now. Regarding the tax implications of owning a home in Canada as a non-resident, as well as many other Canada/US tax issues, I have found the following website invaluable. David Ingram is truly an expert in this field, and very helpful should you email or call him with your questions.http://www.centa.com/

Hope this was helpful to you,
katehudson92
 
Posts: 56
Joined: Sat Oct 06, 2012 3:12 pm

Us Citizen Buying Condo In Quebec

Postby Odale » Thu Dec 08, 2016 2:15 pm

My wife and I would like to buy a particular condo in Quebec -- to lease out for a few years but eventually to move into for about 6 months a year, give or take a month.  Is there a website or publication we should get that will tell us all we need to know about purchasing and leasing, mortgages, taxes for a non-resident, becoming a resident, etc.  Any advice you can give us would be great.  Thanks!
Odale
 
Posts: 46
Joined: Sat Jan 18, 2014 2:28 am


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