If you’ve stumbled upon this article after reading the title, you’re in the right place. Stick with me till the end, and we’ll reveal a game-changing strategy for work permit holders in Canada who are concerned about hefty property taxes.
Understanding the Foreign Buyers Tax: The fear of facing a 20% property tax on your dream home purchase is a daunting prospect for many. Let’s break it down. If you’re eyeing a $700,000 property, the 20% tax amounts to a staggering $140,000. That’s a hefty price to pay, and it’s where dreams can crumble.
A Solution to Lighten the Load: But wait, there’s a way to avoid shouldering such a substantial financial burden. Listen closely and spread the word because this knowledge can make all the difference.
All you need is a co-signer on the property title. I get it; you might be skeptical about this approach, or you may not have someone you trust enough. If that’s the case, this might not be the solution for you. However, for those who have a trustworthy individual in mind, or a family member, then this trick can prove a game changer for you.
The key is to structure the title as “Tenants in Common” rather than “Joint Tenants.” In practical terms, if you own just 1% of a $700,000 property, you’ll only be responsible for 20% of 1% of that value. Let’s break it down with some simple math.
1% of $700,000 is $7,000, and 20% of that is $1,400. So, during the property completion, you will only need to pay $1,400, significantly reducing your financial burden.
Real-World Success: This entire strategy is based on a recent real estate experience. I personally contacted the BC Government office (236-478-1593) to verify this approach. The completion process went smoothly, with taxes correctly calculated. The property owners had their family members on the title and were even approved for higher mortgages.
In the end, it’s all about having the right information, not just any information. That’s what you’re paying me for, so you can confidently navigate the completion day without any unpleasant surprises.
Conclusion: With this knowledge, you can seize your dream home without breaking the bank. So, go ahead, take that leap into the world of homeownership in Canada, and let your dreams take flight.
