• Portfolio Diversification: Reduce risk by investing in different economies and currencies.
• Lifestyle Opportunities: Secure a vacation home or a future retirement property.
• Potential for Strong Returns: Some markets may offer higher rental yields or appreciation potential than the local Edmonton market.
• Currency Advantages: A strong Canadian dollar can increase your buying power in certain countries.

A Step-by-Step Process for Buying Abroad

Define Your Goal: Is this for investment income, personal use, or both?

Research Markets: Focus on countries with stable economies and clear property laws for foreigners.

Assemble Your Team: This is non-negotiable. You need:

• A local buyer's agent
• A local real estate attorney
• A Canadian accountant with international expertise
• A property management company (if renting)

Visit In-Person: Never buy a property you haven't visited multiple times, at different times of the year.

Understand All Costs: Factor in foreign transaction fees, legal fees, higher closing costs, and ongoing management.

Secure Financing: Finalize how you will pay for the property.

Close & Manage: Your local attorney will guide you through the closing process. Set up your management system immediately.

1. Legal & Ownership Laws

Property ownership laws vary drastically by country. Some nations restrict foreign ownership, while others have complex title registry systems. Always hire a local, English-speaking real estate attorney who specializes in working with international buyers.

2. Tax Implications (The Most Complex Aspect)

• Canadian Taxes: You must declare your worldwide income to the Canada Revenue Agency (CRA). Rental income from a foreign property is taxable in Canada.
• Foreign Taxes: You will be subject to property taxes, potential income taxes, and possibly capital gains taxes in the country where the property is located.
• Treaties: Canada has tax treaties with many countries to avoid double taxation. Understanding these is crucial.
• Recommendation: Consult with a Canadian accountant who has experience with international real estate investments before you buy.

3. Financing Your Investment

• Canadian Financing: Using equity from your Edmonton home (e.g., a HELOC) is a common way to finance an overseas purchase.
• Foreign Mortgages: Securing a mortgage as a non-resident can be very difficult or come with high interest rates. Many international purchases are all-cash transactions.
• Currency Exchange: Use a reputable foreign exchange service (not your bank) to get better rates and save thousands on large transfers.

4. Property Management

How will you maintain the property from 5,000 km away?

• Rental Management: If renting it out, you need a trustworthy local management company to handle tenants, maintenance, and rent collection.
• Vacant Properties: A vacant property is vulnerable to theft, squatters, and decay. You need a local contact to check on it regularly.
• Communication: Ensure you have a reliable way to communicate with your team abroad across different time zones.