Your first move must be to look into your mortgage options! You can acquire a much lower interest rate if you consider refinancing your mortgage. Keep in mind that it is also very risky as it may incur a huge prepayment penalty, so make sure you do some research beforehand.

Different investments befall with varying and different levels of risk, but real estate is one type of investment that is stable throughout time. Real estate is one of the most prevalent and well-known investment property sectors and is one of the safest, risk-free ways to earn money from investments. In real estate investing, there are numerous or multiple options to maximize your cash flow. One way is to purchase or acquire an investment property.

An investment property is a real estate property obtained or purchased by an individual investor or a corporation to acquire profit earned through rental payments, the future resale of the real estate property, or both. These real estate properties are commonly not used as primary residences or even second homes. Still, they are purchased solely for the intention of having it as a source or a generator of income. May it be a long-term or short-term investment return in the form of rents, dividends, interests, or even royalties, which falls outside the regular line of business of the property owner.

An investment real estate property can be a long-term endeavor. For example, investors typically acquire single-family housing, lofts, apartments, or condominiums to generate income from rent. An investment real estate property can also be a short-term endeavor. For this type of short-term investment, the investors often do house flipping where they renovate or remodel their purchased investment property then sell it at a profit within a short period of time.

The country simply has a high and exploded statistic for the demand for rentals. And with a broad and extensive array of higher educational institutions and universities, Canada has a stable and growing demand for student rental accommodations.

If you’re new to Canada, know that it possesses a transparent, free, and open market. So, when it comes to the Canadian real estate sector, making an investment and purposefully generating income is very attainable as you have available and accessible resources with the data and information you need. And depending on the real estate sector, Canada’s price per square meter varies between two thousand and three thousand euros.

Moreso, investing in Canadian real estate allows you to access a powerful leverage and advantage effect because of the country’s favorable and good tax system. If you understand the Canadian tax law that applies to real estate investments, owning a property in Canada can be very profitable and beneficial to generating income. Tax advantages are one of the reasons why people should invest in real estate abroad, especially in Canada.

Unlike many other countries and their cities, Canada has a very effective way to leverage your investment with refinancing, which is a way of reinstating or replacing an existing mortgage that you have into a new loan.

Below are some of the tax advantages that Canada offers:

A steadily growing and booming real estate market
An attractive and good tax credit system.
A 4% amortization of the purchase price per year
A small amount of taxation with property income
There is tax flexibility that provides the investors the possibility to obtain and purchase a real estate investment with significant net returns.

Further, there is no residency or citizenship requirement necessary to buy and own property in Canada. Any newcomers to Canada may acquire occupancy in a Canadian residence temporarily. But, of course, people who are coming to Canada must comply with immigration requirements first before they can temporarily reside in the country. Also, Canadian non-residents can own a rental property or a real estate investment property, but they should file an annual tax return through the Canada Revenue Agency.

In summation, if you are looking to invest in real estate, Canada’s economic stability, growth potential, and attractive tax system are very appealing. These factors make the Canadian real estate sector a thriving one. With these mentioned, it certainly makes rental management much easier to maintain.