Korean Job Discussion Forums

DaeguKid · Joined: 09 Dec 2006 Location: Daegu

What do you know about buying a house in Canada while living in Korea? How much do you need down? If your a non-resident, how does that affect the status of getting a mortgage?

Looking into buying back home and renting it out. That will require an income being made. What would I do about taxes? Needless to say I have many questions....

Could you let me know if you are doing this or have done this and how is it going?

Thanks
DK

peppermint · Posted: Sun Aug 12, 2007 4:59 am Post subject:

I'm in Canada, and looking into buying a house. It might be difficult to get a mortgage while working abroad, and I'm pretty sure it would disqualify you for non residency, so you'd have to pay regular Canadian taxes.

DRAMA OVERKILL · Joined: 12 Apr 2005

thepeel · Joined: 08 Aug 2004

I own a house in Canada. Well, I did. I transfered ownership to my dad to avoid the taxation issues.

Generally, 10% down is the very minimum you should have. The "subprime" market has gone to all hell and I'd strongly avoid any such loan anyhow.

You should never spend more than 20-25% of net income on your housing costs. If you are going to rent it out as I (my dad) do, keep in mind that you have to pay property taxes and need a large emergency fund, should the roof fall in or water heater go. Depending on the value of the home, I'd suggest that if you are renting it out, you keep no less than 15-20k in an emergency savings account (or otherwise quickly liquid). Home repairs can add up astonishingly fast. Less so if you are buying an apartment of condo. Also, property management agencies can be expensive, depending on where you live.

I would not buy in Alberta right now. The commodity boom is likely heading to a slowdown, and the Alberta property market is psychotic right now. Should the oil market slow, expect prices in Edmonton/Calgary and the rest of the province to get a touch more sane.

blaseblasphemener · Posted: Sun Aug 12, 2007 2:24 pm Post subject:

Now is a bad time to buy, because everyone has been jumping on the bandwagon for years, due to low interest rates and low unemployment. Wait. Baby boomers are coming up to retirement age, and will start selling their houses when they retire. The housing market is due for a major correction in the next few years.

Captain Corea · Joined: 28 Feb 2005 Location: Seoul

contrarian · Joined: 20 Jan 2007 Location: Nearly in NK

I bought a condo lot mobile home about 1.5 years ago. It was a darned good deal as the major industry in the small town had just closed.

Not evrybody wants to live in the middle of nowhere but for me it will be perfect.

Right now, except maybe in Alberta, the Canadian real estate market is going to dive. Wait about a year.

Scott in Incheon · Joined: 30 Aug 2004

I am not sure about the non-residency thing. I did some looking into this for people buying from overseas. One was that the down payment was more...from 25% to 35% depending on the lender. Some lenders also wanted you to have a few months rent in the bank as well.

If you buy the property as a rental property then you will pay on the profits on your rental property but you will not necessarily become resident. There was a section in the tax code about this. Many non-Canadians buy properties without being residents. If it is a residence then for sure you would lose your non-residency.

I am not 100% on this but this is what I remember when I was looking at buying. The down payment was what stopped me at the second. That would take up most of my cash reserves.

Hollywoodaction · Joined: 02 Jul 2004