I am a 30 year old who has 100k saved up and want to use it for investing in real estate. I am happy with renting as I am not committed to staying in one location and I work remote. As you know Toronto prices are insane and I'm having a hard time justifying purchasing here with my entire savings. What is the repercussions of purchasing in somewhere like texas? I know there are additional taxes but I saw one person mentioned that you can get a foreign tax credit from the canadian government which can offset the cost. I also may move there in the long run. Is it better to look elsewhere or just bite the bullet here in ontario? Any other suggestions would be greatly appreciated
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
4y
If you may move to Texas in the future, then sure, why not get some equity there. Your $100k will go a lot farther there than it will here and you can probably create cashflow with a purchase there as well.
Do check into what the tax implications will be and also realize that the USA market is different and may not appreciate the way that the Canadian Market has appreciated.
I have two homes in Florida that I paid $80K for and they might be worth $250k now. At the same time, I bought two townhouses in Kitchener for $250,000 which are now worth $800,000.
So, it depends upon your plans and your goals, yet you are not wrong with whatever you choose.
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
4y
If you may move to Texas in the future, then sure, why not get some equity there. Your $100k will go a lot farther there than it will here and you can probably create cashflow with a purchase there as well.
Do check into what the tax implications will be and also realize that the USA market is different and may not appreciate the way that the Canadian Market has appreciated.
I have two homes in Florida that I paid $80K for and they might be worth $250k now. At the same time, I bought two townhouses in Kitchener for $250,000 which are now worth $800,000.
So, it depends upon your plans and your goals, yet you are not wrong with whatever you choose.
If you may move to Texas in the future, then sure, why not get some equity there. Your $100k will go a lot farther there than it will here and you can probably create cashflow with a purchase there as well.
Do check into what the tax implications will be and also realize that the USA market is different and may not appreciate the way that the Canadian Market has appreciated.
I have two homes in Florida that I paid $80K for and they might be worth $250k now. At the same time, I bought two townhouses in Kitchener for $250,000 which are now worth $800,000.
So, it depends upon your plans and your goals, yet you are not wrong with whatever you choose.
Good luck.
Thank you. That is awesome! I am a bit jealous :D. If this was a few years ago I would easily buy here but I just don't think it's affordable for me at the moment as somewhere like texas. I was hoping someone could chime in on the tax implications but I am still doing my research on the side.
If you may move to Texas in the future, then sure, why not get some equity there. Your $100k will go a lot farther there than it will here and you can probably create cashflow with a purchase there as well.
Do check into what the tax implications will be and also realize that the USA market is different and may not appreciate the way that the Canadian Market has appreciated.
I have two homes in Florida that I paid $80K for and they might be worth $250k now. At the same time, I bought two townhouses in Kitchener for $250,000 which are now worth $800,000.
So, it depends upon your plans and your goals, yet you are not wrong with whatever you choose.
Good luck.
Thank you. That is awesome! I am a bit jealous :D. If this was a few years ago I would easily buy here but I just don't think it's affordable for me at the moment as somewhere like texas. I was hoping someone could chime in on the tax implications but I am still doing my research on the side.
You would have to talk to a cross border accountant for advice on this however I use an LP so I don't get double taxed. Happy to refer to an accountant if you don't have one
I came across a great Youtube episode of Jesse Freagele's podcast with guest Chris Picciurro tacking this topic. It was from 12/15/2020 if you search it. Chris is a CPA that focuses his business on Canadian's looking to invest in the U.S.. Other than that come to Phoenix :), Texas is great but those property taxes will sneak up on you.
I came across a great Youtube episode of Jesse Freagele's podcast with guest Chris Picciurro tacking this topic. It was from 12/15/2020 if you search it. Chris is a CPA that focuses his business on Canadian's looking to invest in the U.S.. Other than that come to Phoenix :), Texas is great but those property taxes will sneak up on you.
Thank you! I will look into Pheonix. I haven't checked out any other U.S. Markets yet so always open to suggestions. I will check out the podcast.
Catch me on Glen Sutherlands podcast "A Canadian Investing in the U.S." we record next week and should be published mid April if you want to learn more about the market.
Rental Property Investor · Member since 2018 · 78 posts · 11 votes
4y
US market has many benefits that Canadian market lack , None existent of rent control, prices in general seem to be less crazy like here. on the other hand you need someone there to manage your property , but minimum down-payment and interest rates are higher for Canadian so be prepared for that too.