Daily Market Update

Warning for Canadians with homes south of the border
Canadians who like to spend the colder months of the year in the sunnier parts of the U.S. are being warned to watch out for the taxman. Advances in technology now make it even easier for the U.S. Internal Revenue Service to track so-called snowbirds, and if you rack up more than 182 days south of the border then they want your cash! The Financial Post reports that even an average of 120 days over a three-year period can attract the attention of the IRS. Those who fall foul of the taxman can expect a claim on their worldwide income and other penalties. Canadians are among the biggest foreign purchasers of U.S. real estate, but there may be fewer transactions this year due to the lower value of the Canadian dollar; unless of course it’s Canadians selling their property down south to cash in on the exchange rate. Read the full story
 
Metropolitan areas see most population growth
New figures from StatsCan show that the census metropolitan areas (CMAs) saw considerably higher growth than non-CMAs in the period between July 1, 2013 and June 30, 2014. On July 1, 2014, seven out of 10 Canadians were living in a CMA; more than a third were in Toronto, Montreal or Vancouver. During the past year, the population of the Toronto CMA broke the six million threshold, reaching 6,055,700, while the population of the Montréal CMA passed the foud million mark, reaching 4,027,100. Alberta and Saskatchewan saw the fasted growth in CMA population, led by Calgary (up 3.6 per cent) and followed by Edmonton (up 3.3 per cent), Saskatoon (up 3.2 per cent) and Regina (up 2.8 per cent). Kelowna (up 1.8 per cent), Winnipeg ( up 1.6 per cent) and Toronto ( up 1.5 per cent) were the only other CMAs in the country to post population growth rates higher than the national CMA average increase of 1.4 per cent. In contrast, Saint John, NB, was the lone CMA in Canada to see its population decline significantly, falling 0.5 per cent. Find out more about Canada's cities and neighbourhoods by using CREW's Investment Hotspot tool.
 
Foreign investment could increase in Canada’s property market
The ability of foreign investors to put their money into Canada’s real estate has been strengthened by current economic conditions. With the loonie weakened against some other currencies and investors in sectors that have benefitted from the lower oil prices seeing their equities rise in value, our property market looks increasingly attractive. However, with property prices high in the hottest markets, investors are diversifying. Reuters reports that Chinese investors who have already built residential property portfolios in areas like Vancouver are now looking at hotels, golf courses and wineries as potentially lucrative investments. David Goodman of HQ Commercial said that Chinese investors are also interested in property development more than ever with condos or mixed-use projects among their plans. Read the full story
 

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COMMENTS

  • by Not a USA citizen or taxpayer 2015-02-12 7:03:49 PM

    Re: Warning for people living winter in US and owning homes in US.
    Am I missing something here?
    Isn't it true that the IRS has the authority to tax it's "CITIZENS"? How does a Canadian become subject to a USA Corporation that only has the right over its citizens/members?
    Is there not a reciprocal agreement that prevents taxation of a Canadian by the IRS?
    Is it not true that the difference between Canada and USA is that USA taxes based on citizenship and CRA TAXES BASED ON RESIDENCY?
    OH I get it, if a Canadian is out of the country for more than 6 months they could argue that they are no longer resident in Canada!
    Why is the media in Canada so intent on creating fear?
    How thorough a job did the writer of these stories investigate the reality of the fear they are trying to foment.

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