Resources for investing in Canada

Resources for investing in Canada

Member since 2020 · 21 posts · 12 votes

I have been trying to get started in investing in RE in Canada. I want to go over all the info I have and see if people have suggestions on what else might be available or what I can do to make better decisions. There are multiple issues -

  1. 1. The price to rent ratio is super high almost across the country. Makes the 1-2% rule almost useless.
  2. 2. The price point is much higher if you want to get in as a new investor into just rental property investment.
  3. 3. The law forces investors to put 20% down. So a 400k property means I have to tie down 80k minimum. Which reduces Cap rate.
  4. 4. Communities have very tight short term rental restrictions, making it very difficult to find properties, and then if tomorrow the zoning changes, you might go from positive cashflow to nothing, since the laws on short-term rentals are so volatile and different across the country.
  5. 5. In bigger cities, almost all investors have a negative cap rate.
  6. 6. The resources/websites/services are not mature enough to get information as easily as in the States.

I couldn't find a section on BP that is dedicated to Canada and a lot of resources and discussions are specific to the States. Here is what I've found up until now -

  1. 1. Realtor.ca is the only website that lets me calculate numbers along with the listing. So I prefer that.
  2. 2. Rentometer.com works only in limited ways for giving info on rents. RentFaster.ca is a better resource, unless you want to scour through craigslist.
  3. 3. AirDNA gives good data in Canada as well for short term rentals, so that's good.
  4. 4. Each city has a different zoning for short-term rentals.
  5. 5. Short term rentals seem to be the only way to have a positive cashflow after keeping aside money for repairs, CapEx, vacancy, etc. and still have a decent CoC return.

What do people here think? What can I do to get more information on the Canadian markets? Or what should be my next step? I've mostly looked at all the major places - Victoria, Kelowna, Banff, Calgary, Edmonton, Ottawa, Toronto (and nearby areas), Halifax even. Anyone with experience investing in Canada who can share stories/tips?

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Real Estate Broker · Calgary, Alberta · Member since 2017 · 66 posts · 41 votes
6y

You seem to focus a lot on the "I'm not able to because.."

How about switching your mindset to "How can I overcome this obstacle.."

See this reply in the discussion

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  • New to Real Estate · High River, AB CANADA · Member since 2021 · 27 posts · 23 votes
    2y

    I'm currently looking for a partner who would like to purchase a few condos in Edmonton.  I currently own several and know the city and market very well.  Downpayments are small there between 14k and 20k, with strong cashflow or 300-500 per door.  Just message if interested.

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