Investors

At Right at Home, we understand that real estate is not just a place to call home; it's also a powerful investment vehicle that can help you build wealth and secure your financial future. Whether you're a seasoned investor looking to expand your portfolio or a newcomer eager to dip your toes into the world of residential real estate, our dedicated team of experts is here to guide you every step of the way. As national, provincial, and municipal investor-related incentives and regulations change over time, we encourage you to speak with an experienced agent to update you on the latest info to help you make the most of your investments. Let's embark on this rewarding journey together!
 

Below are a few things to think about when investing in residential real estate in Ontario:

Non-Resident Speculation Tax (NRST)

For the most up-to-date information, please visit the Ontario Government Website.

The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens or permanent residents of Canada) or by foreign corporations or taxable trustees. Effective October 25, 2022, the NRST rate is 25%.

Underused Housing Tax (UHT)

For the most up-to-date information, please visit the Canadian Government Website.

The Underused Housing Tax is an annual federal 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax generally applies to foreign national owners of housing in Canada. However, in some situations, this tax also applies to some Canadian owners (such as certain partners, trustees, and corporations).

8 Key Benefits of Investing in Ontario Real Estate

1. Steady Appreciation: Ontario's real estate market has historically shown strong, steady appreciation in property values, making it a lucrative long-term investment.
2. Rental Income: Demand for rental properties remains high, providing a reliable source of monthly income for investors.
3. Diverse Markets: Ontario offers a wide range of real estate markets, from bustling urban centres like Toronto to quieter suburban areas, catering to various investment preferences.
4. Stable Economy: Ontario boasts a stable and diverse economy with multiple industries, reducing the risk associated with economic downturns.
5. Low-Interest Rates: Historically low-interest rates make it more affordable to finance investment properties, increasing potential returns.
6. Tax Benefits: Investors can take advantage of tax deductions for expenses such as mortgage interest, property management, and property maintenance.
7. Potential for Renovation and Flipping: Ontario's housing stock often presents opportunities for renovation and flipping projects, potentially yielding significant profits.
8. Diversification: Residential real estate allows for portfolio diversification, reducing risk compared to investing solely in stocks or other asset classes.

9 Considerations for Investing in Ontario Real Estate

1. Market Volatility: While historically stable, real estate markets can experience fluctuations. Be prepared for potential market downturns.
2. High Entry Costs: Ontario's major cities can have high property prices, requiring substantial initial investments.
3. Regulatory Changes: Keep abreast of changes in rental regulations and tax laws, which can impact your investment strategy.
4. Property Management: Managing rental properties can be time-consuming. Consider whether you'll handle it yourself or hire a property management company.
5. Location Selection: Carefully choose the location of your investment property as it significantly affects rental income and property appreciation.
6. Financing Risks: Rising interest rates can increase your mortgage costs, affecting cash flow.
7. Maintenance and Repairs: Budget for ongoing maintenance and unexpected repairs to protect your investment.
8. Tenant Management: Screening and managing tenants is crucial for a smooth rental experience. Consider tenant selection and lease agreements carefully.
9. Exit Strategy: Plan your exit strategy, whether it's selling for profit, passing down to heirs, or maintaining a long-term income stream.

Contact an Experienced Agent