Canadian interested in investing in the US.

7 Replies

I live in Canada but the buy and hold market here is not favorable. I am interested in investing long distance in the USA. What legal and tax complications should I be aware of?

Will I look for financing from Canadian or American institutions?

Will federally insured mortgages be possible for me?

What cross boarder taxes should I be aware of?

Thanks!

@Adam Vadnais

Buy and hold is actually entirely favourable in certain pockets in Canada, not so much cold lake at the moment but Edmonton and Saskatoon are earning 18%+ roi annually regularly for investors including myself.

That said, pop over to the myreinspace forum and check out BDO’s blog on investing down south, lots of good info in both places.

Originally posted by @Account Closed :

@Adam Vadnais

Buy and hold is actually entirely favourable in certain pockets in Canada, not so much cold lake at the moment but Edmonton and Saskatoon are earning 18%+ roi annually regularly for investors including myself.

That said, pop over to the myreinspace forum and check out BDO’s blog on investing down south, lots of good info in both places.

Which parts of Edmonton and Saskatoon? This is buy and hold?

 

@Hai Loc

Saskatoon: stay away from pleasant hill, Mayfair, meadow green and several others near there. In addition most property types in Stonebridge won’t appreciate terribly well the next 5-7 years.

Edmonton: QMP is junk, along with about 20 more areas, probably 40+ that are good. At ~1.4M ppn fir the greater area you’re asking a large Q!

@Greg Classen

I buy 1050-1250 sq ft bilevel or 4 level split suited houses on subdivisible lots. Double or triple detached garages. I buy ugly and under maintained buildings in great areas and I get rid of the ugly. A couple times I’ve gone a little further and moved some walls around etc but often it’s primarily cosmetic renovations. Between principle paid down, cash flow, and appreciation (primarily forced currently as the market is verrrrrrry flat) I’ve got my $ out by year 5 or earlier. So non-compounded you’re looking at 20% if it took 5yrs. Compounded you’re around 17% or so I would estimate. The one I purchased 2.5yrs back is already cashed out and the one I bought in May will likely be near year 3. Fastest Rinse /repeat was about 6 months.

If you want specific areas of town, that’s a longer conversation. I can tell you I’ve almost never seen anything published in CREW magazine up here that I thought was remotely accurate with respect to Saskatchewan as a whole. And CHMC numbers on vacancy and rents etc are often... quite full of fluff in comparison to on the ground numbers. I operate at near 0% vacancy and get minimum $1,550 for a 2 bedroom main floor when their latest numbers were something like $1,050 for a 2 bedroom. 3 bedroom main floors don’t actually get THAT much of a premium for rent but are even easier to rent than 2’s. My 3 beds are between $1650 and $1975 currently.

Where CHMC does provide accurate info is trends up / down for sub areas of the city. But then you’re compiling data from the last 3 reports and realistically local policy impacts that quicker than anything.