Potential province move. As good as it seems?

Question

hello you smart real estate investors!! I have been running over this scenario and it just seems too good to be true so im hoping for a third party to guide me further.

We currently live in Ontario Canada with two duplexs. One currently worth 350k and our farm currently worth 700k.  The duplex cash flows $600 and we live in one side of the farm but the other brings in $1400.

We are very seriously considering moving to New brunswick.  Property over there is much cheaper, our dream home which trumps our current is $200k.  There are also rental properties starting at $45,000. The one i have just budgetted would cash flow the same as our $350k duplex here.  My only concern being appreciation values as we seem to be going up serious percentages here in Peterborough Ontario and there is just no way NB has the same rate of increase.  That said...i could sell our duplex here and buy our dream home outright, buy a duplex perhaps two and then sell our farm and invest it in NB. helping us to perhaps semi retire??

What am I missing here?

Im open to all suggestions, negatives and go for its!

Big move with two kiddos under two but much better lifestyle for our family.

Much love!!

Charlie

Hai Loc · Answer

Roy just joking.. CIBC and RBC are my favorite and they are all over Canada..  TD and BMO are the worst..

20k a unit you getting a 1890 built that is ready to collapse..LOL   But I have to say tenants paying with Interac E transfer is a whole lot better and convenient vs the options in the US..

Roy N. · Answer

Seriously?   CIBC is one of the  Big-5 Schedule A banks ...(read: Nationally Chartered) ....

At least you didn't ask me if we have the Bank of Nova Scotia down here ;-)

You can find residential and small multi-unit properties for between $20 -$30K/unit still.  They are less numerous now that folks from Upper Canada are down here {over}paying for things ;-)   You will need to be prepared to either function as one of the "I don't really care" landlords or invest an additional 10 - 20K /unit into such properties.

Hai Loc · Answer

@Roy N.

Find me some duplexes for $45k. Do they have CIBC over there?

Charlotte Adams · Answer

Upon further research I learned this duplex has an oil spill that the seller is not willing to clean up.  The search and research continues.  Roy it sounds like you are extremely savvy in New Brunswick investment! Thank you for your insight

Roy N. · Answer

While you can find $45K duplexes in several places in the province, there is often a very good reason they are a mere $45K.   Spend some time to learn about the area and the local economy (or lack thereof) before investing.

Thomas S. · Answer

Go for it. Selling everything here and investing down there with leverage will generate income that will far surpass the value of appreciation. You need income to live on, appreciation is greatly over valued since it does not put food on the table.

If there is a market adjustment coming you will want to liquidate your holdings in Ontario soon and reinvest in NB for cash flow.