Hi, I'm an international student,20 years old, and moving to Canada in September in Toronto. So, if I want to buy a multi-family unit(9 to 10)for myself as well as for investment purposes(student rental), will the bank give me a 95% loan (CMHC)? Or do I have to pay a 20% down payment? How much interest rate private lenders will take if the bank doesn't agree to give?
Another thing is what's the easiest way to get connected with the real estate industry? Can I start with real estate photography, wholesale as a starter to grow connections and create savings for a down payment?
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
4y
@Nazmus Sakib Welcome to BP (and soon to Canada). As a young non-resident with no credit history in Canada, you'll be hard pressed to find a conventional mortgage. If you are looking at mid-size MF (10 units) in the Toronto area, you'll need deep pockets... this doesn't mesh with your need to "save for a downpayment" unfortunately.
Rental Property Investor · Port Coquitlam, BC · Member since 2017 · 520 posts · 527 votes
4y
@Nazmus Sakib Welcome to BP (and soon to Canada). As a young non-resident with no credit history in Canada, you'll be hard pressed to find a conventional mortgage. If you are looking at mid-size MF (10 units) in the Toronto area, you'll need deep pockets... this doesn't mesh with your need to "save for a downpayment" unfortunately.
Happens all the time. It comprises a healthy portion of the massive money laundering problem that exists in Canada currently. Dozens of examples of international students buying $5+M on property for cash over a couple years. Enjoy!
Calgary, AB · Member since 2021 · 327 posts · 176 votes
4y
Quote from @Account Closed:
@Nazmus Sakib
Happens all the time. It comprises a healthy portion of the massive money laundering problem that exists in Canada currently. Dozens of examples of international students buying $5+M on property for cash over a couple years. Enjoy!
I think those are just rich kids and not done through loans.
Indeed. Like the “rich kid” who arrives with $2k to his name and buys 3 vancouver detached homes worth $10M in 2 years while his parents hide out in a non-extradition country after being charged with money laundering in China. Rich kids.
@Nazmus Sakib Welcome to BP (and soon to Canada). As a young non-resident with no credit history in Canada, you'll be hard pressed to find a conventional mortgage. If you are looking at mid-size MF (10 units) in the Toronto area, you'll need deep pockets... this doesn't mesh with your need to "save for a downpayment" unfortunately.
Thanks, what will be your advice for me then? To start as early as possible? Should I wait until Permanent Residency?
Happens all the time. It comprises a healthy portion of the massive money laundering problem that exists in Canada currently. Dozens of examples of international students buying $5+M on property for cash over a couple years. Enjoy!
Oh, I have my relatives in Canada, I was thinking to use their money(OPM) as a down payment, can I do that? I'll just wait for capital gain, in the mean time those rentals will pay for (private landers + relatives)mortgage, and exit when the price of a house a increase and buy new ones,
@Account Closed what do you guys suggest to do as a beginner for getting into the real estate to see the insight? Real Estate Photography? Wholesaling?
@Account Closed, @Stevo Sun, @Account Closed what do you guys suggest to do as a beginner for getting into the real estate to see the insight? Real Estate Photography? Wholesaling?
I think you are doing the right thing but discussing and learning, For Real Estate market know how in GTA, One should be here to feel it at first hand to gauge it. 5% with no credit history may be tough but keep your plans high and just come here, it would take some time but you would do good. Keep in Touch.
Calgary, AB · Member since 2021 · 327 posts · 176 votes
4y
Quote from @Account Closed:
@Stevo Sun
Indeed. Like the “rich kid” who arrives with $2k to his name and buys 3 vancouver detached homes worth $10M in 2 years while his parents hide out in a non-extradition country after being charged with money laundering in China. Rich kids.
Yeah there are a lot of rich asians. If their family has property in hot spots in Beijing, Shanghai or HK, they can easily afford the property here. Isn't always money laundering necessarily. I personally know people who had their apartment bought by the government in Shanghai for redevelopment. A 800 sqft apartment got bought out for over 1mil CAD by the government cuz they are tearing it down to redevelop the area. The rule there is "2 for 1" if the government want your property, they basically double the market price to incentivize for you to sell to them. So if you are lucky you can get a lot of money.