@Kwanza P. We have an STR in Mexico. It's been awesome, not only from its performance but it's our go-to place for vac or long weekends.
Hey @Kwanza P. Ive been investigating getting our second STR in Mexico would you be open to chatting for 30 mins. Would like to understand financing and insurance hurdles.
Real Estate Agent · Louisiana · Member since 2017 · 214 posts · 146 votes
1y
I haven't researched international STR. But I do have some family in Canada that have told me there has been some tax increases to the STR owners to try combat housing issues. Not sure if this is everywhere or just the market they're in (GTA). But I would be sure to look into that & speak to a tax professional up there before dumping too much time into research.
When it comes to Mexico, I've shared my experience by replying to hundreds of posts on the topic on the forum. You might find the answers to your questions there but I know that the search function is less then optimal so feel free to send me a DM if you don't easily find what you're looking for.
I've never bothered commenting much about Canada because, until recently, it made no sense for US investors to invest in Canada: much less favorable mortgage conditions if they could even get one, much more expensive prices on average and much less profitable on average. @Josh Ball mentions, there are issues with foreign investors but, nowadays, it's not necessarily on the tax front anymore. There's actually a moratorium that doesn't allow foreigners to buy most properties. I believe they might still able to buy new properties (I have a Canadian passport so it doesn't affect me and so I haven't followed the details). That moratorium is supposed to be temporary.
Mind you, while the US used to have (some of the) lowest interest rates in the world for the last 15 years, this is no longer the case and the US actually has some of the highest interest rates in the world nowadays and that doesn't look to change any time soon. Therefore, it makes more sense for US investors to look overseas and Canadian interest rates are now significantly lower. As a result, while the US market is stuck in the lock-in effect, the Canadian market is kinda booming so it makes more sense for Americans to consider Canada nowadays, except for the fact that Canada has on average one of the if not the most unaffordable real estate in the world.