real estate investment in canada

7 Replies

are there good opportunities in canada to start in real estate investment? if yes what are the good areas to start?

Hi @David Fo ! yes, I think there are some opportunities in Canada. I'd start by researching more about various markets. Are there any specific strategies you are after? I notice that you are in GA, US so am curious what you have in mind. 

On top of the traditional same opportunities found in US real estate market, by investing north of the border you get exposure to the Canadian dollar. In the present context whereby its seems American leadership is trying to devaluate the US currency, it will add you some extra points on your RE investment. 

What’s your strategy? Flip? Buy and hold?

Lots of opportunity. Especially in not so publicized markets.

@David Fo

@Samy Kahoul brings you an interesting insight.  Back in 2008/2009, we leveraged the fact the CAD was at par (and slightly higher) than the USD to invest on your side of the line.   As of 2017 year the CAD had dropped to the $0.76 - 0.80 USD range ... the relative devaluation of the Loonie provided a nice windfall.

At the moment, your USD would enjoy a 25% surplus investing in Canada ... and, if you select an appropriate area of the country the face value of property prices will not be terribly different than many places south of the 49th.   {Select a hyper-inflated market (i.e. "wrong" area - such as Vancouver, TO, etc) and real estate prices will astonish you}

Hi Bp,

As I read more about the Canadian housing market, I am becoming very interested. Not because there are currently good deals, but because on MANY accounts it sounds like that market looks a lot like the US in 2007. If they are close to an epic crash, it could leave another "once in a lifetime window" for investing. 

However, as a US resident, I don't know anything about buying properties in Canada with US dollars. My questions are:

Do US lenders lend on properties over the boarder? 

Do Canadian lenders ever lend to US citizens?

Or, would a US investor need to make cash purchases?

Also, would you end up paying double taxes on any gains made in investments in Canada?

Thanks!

Originally posted by @Justin Koehn :

Hi Bp,

As I read more about the Canadian housing market, I am becoming very interested. Not because there are currently good deals, but because on MANY accounts it sounds like that market looks a lot like the US in 2007. If they are close to an epic crash, it could leave another "once in a lifetime window" for investing. 

However, as a US resident, I don't know anything about buying properties in Canada with US dollars. My questions are:

Do US lenders lend on properties over the boarder? 

Do Canadian lenders ever lend to US citizens?

Or, would a US investor need to make cash purchases?

Also, would you end up paying double taxes on any gains made in investments in Canada?

There are several markets in Canada that are long overdue for a significant correction.  However, when those corrections come, while things may become bad by Canadian standards, it is unlikely they will look like the U.S.A. in 2008.   Lending requirement here are stiffer than in the U.S.A.; mortgage delinquency is historically <1% with default being <0.5%.   It is also not quite as easy to simply walk away from your debt.

There are Canadian lenders who will finance properties for U.S.A. citizens - you will quite possibly find LTVs for such financing to be in the 40 - 60% range {similar what Canadians face when purchasing real estate in country}.

When it comes to taxation, find yourself an accountant familiar with real estate in both countries and the U.S.A. - Canada tax treaty ... how you hold your properties will play a role in how you are taxed.

@roy n thanks the reply. I'll keep watching and see how things go in the next few years.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here