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Americans Buying Canadian Real Estate? There’s A Tax For That

Americans Buying Canadian Real Estate? There’s A Tax For That
5 Comments

We’re receiving a massive amount of traffic from Americans with a sudden interest in moving to Canada. It’s nice here, but given the timing it may have more to do with the US election than our fabulous weather. If you’re thinking of moving to Canada, there’s something you should know about housing. Canadian real estate is much more expensive than US real estate, and some places even have taxes that will make it more expensive for Americans.

Canadian Real Estate Is Expensive

One of the most shocking things Americans find is that Canadian real estate is really pricey. Especially when contrasted with US real estate.  The average benchmark home in the Canada is CA$474,000 (US$352,076), while the average home in the US is CA$315,303 (US$234,200). That’s 50% more expensive, for your average home across the country.

If you’re comparing urban areas, that trend is even worse. A home in Toronto will set you back CA$762,975 (US$566,719). In Chicago (a city of comparable size), the average home costs CA$288,646 (US$214,400). That’s a 164%, more than double the cost. Unless you’re from New York City, you’ll almost certainly be paying more for less North of the 49th.

Yes, You’re Foreigners In Canada

Soaring home prices have made Canadians touchy about foreign buyers, and this includes Americans. We’re not discussing a wall here, just taxes foreign buyers on real estate purchases. Nationally, this won’t have a chance of being implemented before 2018. However, one province went ahead to give the country a glimpse of what it will be like – British Columbia (BC).

If you’re looking to buy a home in BC, you’ll be hit with 15% foreign buyer tax. The average benchmark home in Vancouver is CA$919,300 (US$682,834), so expect to pay a CA$137,895 (US$102,425) foreign buyer tax. Yes, just buying a home in Vancouver comes with a tax that’s more than half the price of a home in Chicago. If any other provinces implements a foreign buyer tax, it will probably in a similar range.

It’s not lost on us that most Americans researching a move to Canada aren’t actually moving to Canada. Kind of like when I watch Food Network, and there’s zero chance I will ever cook. More likely they’re just daydreaming of a place to flee. Sorry to pour a little cold water on that.


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Photo: Daniel Means

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5 Comments

  • Reply
    Mike 4 weeks ago

    Ha! I wish I could see the looks on BC politicians faces right now. Tax foreign buyers because they’re trying to keep the Chinese out, invite Americans afterwards…but they need to tax them the same way.

  • Reply
    Ben Senise 4 weeks ago

    What is it that makes Americans think that they can waltz right in here just because they elected an idiot for president? Hey, Trump won. Suck it up! We don’t want you here. Stay there and make America great again!!

  • Reply
    Johnny 4 weeks ago

    Canada is not really “inviting” Americans. Plus, you probably don’t want to live in Vancouver anyway. But be aware that Canada only admits 6,000 US citizens per year, and most of that number had applied for more mundane reasons long before the First Tuesday in November, so chances are someone could only stay for a maximum of 6 months on a tourist visa.

  • Reply
    Jen 4 weeks ago

    LOLOLOL. Please show us a house in Vancouver for $900k CDN. Seriously, what house is this? Shittiest house in Vancity might start around $1.3m, but prob higher.
    #research

  • Reply
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