Canada vs. US - Where is it better to invest?

Question

Is Canada becoming a better place to invest in buy-and-hold real estate for US citizens/ residents? Considering the accelerating drop in the US dollar's value, Canada may seems attractive. However, when it comes to taxes (1031 exchange, etc. ) and other laws, it may not be that attractive at all. Your thoughts...

Eddie Ziv · Answer

Wow, Tom. That sound almost hostile... You forgot to add:
"U.S.A.!! U.S.A.!! U.S.A.!!"

Steve L. · Answer

This is an easy answer.  I grew up in Canada and moved to California primarily because I wanted to get into real estate/business.
          
          Canada is not near as business friendly compared to the US (even in comparison to socialist California). 
          
          Real Estate laws are also very different.  Mortgage Interest is not a tax deductible so most Canadians dream is to pay off their house. Whereas; many Americans want to the "tax benefits" of a mortgage.  Also no such thing as a 1031 exchange.
          
          They also do not have near the housing bubble US has suffered. Canada banks are much more conservative so buyers had to have a down payment, etc etc.  
          
          USA is on sale much more than Canada is right now.  I am sure there is opportunity in California, but not the same as here.

Account Closed · Answer

I saw a list of new, newly redecorated, and up and coming ski resorts in Canada. For long term, they might be worth looking into. The list was in a ski magazine at the Dr's office, so sorry, don't have any more information about it, but it should be easy enough to google.

Account Closed · Answer

I know that from talking to other landlords that the landlord tenant laws in some parts of Canada can be difficult to work with. That can have a pretty big effect on buy and hold investors.

On the plus side for Canada, the economy and real estate both seem to be more stable. I am very fond of the Vancouver area; it's quite beautiful and seems prosperous.

Real estate in the USA is currently on sale. It is a good time to buy for buy and hold investors. Real estate always goes in cycles, and if you can buy at the bottom of a cycle, it's a good thing.

Josh Keys · Answer

Note I said generally - im sure there are good buy and holds in Canada, they are probaly just tougher to find than in the US.

Timothy W. · Answer

Always seems to be Canadians coming on here to learn about investing in the US, not the other way around.  I would look at the Canadian dollar for FOREX trading but not real estate.  The US leadership has and continues to screw up and while it kills the dollar, it makes great REI deals.  So in a way I would ideally find a way to use rising Canadian dollars to buy undervalued US real estate.  Triage it baby.

Eddie Ziv · Answer

Interesting that you put the tax benefits in quotations. One can argue that the tax deduction of mortgage interest is more of a curse than a blessing. The conspiracy theorists would argue that it was created so people would borrow more and thus make the banks more powerful.

Canada vs. US - Where is it better to invest?

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