In this Edition
With the traditional Canadian real estate investment landscape yielding lower returns, investors are forced to be creative with harnessing new cash flow alternatives.
For Canadians investing in real estate abroad, Andy Yap indicates in his article "What Canadian Taxpayers Owning Foreign Real Estate Should Keep in Mind" specific tax compliance requirements with owning and disposing of property in other countries that can impact on investor's bottom line. These include Canadian income tax and foreign tax issues that arise when acquiring real estate outside Canada, regardless of if it was purchased as a vacation home/secondary residence or as an income-producing property. Investors should seek advice from professionals who understand the rules and laws of that jurisdiction before making the purchase to ensure all requirements are followed, as there are penalties for non-compliance.
Whether you are looking abroad or prefer investing closer to home, knowing your market is the key to designing a highly specialized real estate strategy. In this edition, our Road to Success feature interview with Retirement Life Communities CEO, Joe Ger, illustrates how changes to people's retirement lifestyles are driving improvements in the retirement community model, as well as creating turn-key products for long-term investors.
Regardless of the strategy you pursue, be sure to choose your partners wisely and have the proper legal agreements in place. As Howard Joffe explains in his article "Agreements Relating to Real Estate Investments", whether it's a joint venture, a partnership or a corporation, the parties involved must have an agreement reflecting their understanding of the relationship. Without a detailed plan the parties leave themselves open to disputes and potential litigation, costing time and money.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.