Real estate can be a valuable investment, whether you are an individual buyer or a business entity. However, these transactions can be far more complicated than people expect. Certain pitfalls could derail your plans or lead to costly losses, so knowing what to watch out for can help.
Non-resident buyer ban
A ban prohibiting foreign investors from purchasing residential property in Canada went into effect this year. For the next two years, many non-citizen buyers will not be able to buy residential property with one to three dwelling units in parts of the country, including Calgary.
Foreign-controlled Canadian entities and overseas corporations are among those included in the ban.
However, many do not expect this ban to have a significant impact on residential real estate availability or pricing, as foreign home ownership makes up a tiny percentage of residential properties. Still, this ban could present difficulties if you are not a Canadian citizen or permanent resident of Canada.
The housing market
Alberta is experiencing a robust housing market right now. There is an increase in interested buyers coming to the province, and housing prices remain high, despite drops in home prices across Canada.
Under these conditions, prospective buyers can make some critical errors in the buying process. Some wind up offering more than a property is worth and cannot get a loan for the full amount. Others buy property without due diligence, leaving the door open for serious issues with the home or title.
Avoiding these and other pitfalls
Knowing about these elements can help you make informed, wise decisions if you are looking to buy property in Alberta.
Having legal guidance when purchasing property can be one such decision to help streamline this process. A lawyer can help you navigate any potential hiccup that might arise, whether it involves clearing a title of defects or negotiating encumbrances.
Homebuying should be a positive experience, but it can still be stressful and complicated. Having insight into the process and getting help from professionals can help things move forward more smoothly so you can enjoy your new home for years to come.