O Canada
March 1, 2005
Used as an American city stand-in
for movies like Chicago, Toronto is
particularly appealing to
those
looking for a primary residence. “To start out
with,
you’re already
getting a 20 percent discount, just with the exchange
rate,” says
Harvey Kalles of Harvey Kalles Real Estate, an
affiliate of
Christie’s
Great Estates based in Toronto. “Then
you add the safety factor, the
natural beauty and the
educational and health systems, and many people
begin to
see
how it can be superior to the U.S.” While not quite as
popular with
Americans as Vancouver or Montreal, that may soon change.
“For
one thing, Donald
Trump is constructing a 75-story condominium
tower in the heart of downtown,”
says Kalles. “And, once the
tax
incentives for American filming have been put
back into
place, the city
is going to start to get a lot more attention.” Top
neighborhoods such
as Rosedale can see high-end properties
sell for $7 million
CAD ($5.8
million USD), while just 15
minutes from the city, rural areas like
the
Bridle Path, where
lots are at least two acres, can sell for around $3
million
CAD ($2.5 million USD) for the land or between $5 million and
$12
million CAD ($4.1 million–$9.9 million USD) for completed homes.
Known for its
superior schools and proximity to downtown,
homes in the
Forest Hill Village
area can cost as much as $25
million CAD ($20.6
million USD).
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Sotheby’s has the listing for this $18.5 million
CAD villa, top, on Vancouver’s
Victoria Island. Above, the rowing
club’s boathouse in Vancouver’s Stanley
Park. (Click image to enlarge)Naturally, purchasing property in Canada has advantages and drawbacks from an American perspective. Welcome is the general absence of capital gains tax on profits of up to $500,000 CAD made from the sale of a primary residence, with a top rate of 15 percent on gains in excess of $500,000 CAD. Mortgage interest, however, is not tax deductible, and while property taxes tend to be lower than in the United States, homes are reassessed every year—as home values rapidly increase, so do taxes. You won’t need a passport to enter the country, but with myriad tax and residency issues to go over, bring your favorite lawyer along.
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