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Canadians Investing in US Real Estate
Low interest rates, favourable exchange turn U.S. into hotspot
EVEN FOR INVESTORS IN CENTRAL CANADA, WHERE THE METROPOLISES OFFER DIMINISHING RETURN ON INVESTMENTS, THE UNITED STATES OFFERS DENSELY-POPULATED MARKETS WITH STRONG FUNDAMENTALS AND NO SHORTAGE OF RENTAL DEMAND.
All across Canada real estate prices continue to rise at an incredible rate making buying an investment property an increasingly difficult task. The Canadian government has mismanaged the real estate market so insidiously that investors may find themselves struggling for cash flow and high ROI. This has many looking South of the border for investment opportunities.
The US real estate market (in contrast with the Canadian real estate market) was built on capitalist ideologies, less red tape, more incentives to develop, and real estate friendly tax rules, meaning there is a far greater opportunity for higher returns. Investors always go where the returns are.
Homebuyers face stiff competition in South Florida as northerners arrive — with cash
AS HOMEBUYERS JOSTLE FOR A DWINDLING SUPPLY OF HOUSES IN SOUTH FLORIDA, LOCAL BIDDERS ARE FINDING THEMSELVES IN A GROWING COMPETITION WITH OUT-OF-STATE PEOPLE WHO ARE OFFERING CASH ON THE SPOT.
The new work-from-home economy has caused a major shift in how real estate works around the world. In the US, what's happening now is people are fleeing highly taxes, expensive cities with cold winter weather (i.e. New York) and heading to tax-friendly states like Florida. Spotting this long-term trend early enough can make you a long-term fortune.
Real estate investing isn't rocket science. Just think about it, if you were working from home where would you want to live? I know I'd choose somewhere like Florida with the warm weather, low taxes, and hundreds of miles of ocean front.
Want Warm Weather, Low Taxes, and Waterfront Property? So do Many Others.
“THE DEMAND HAS BEEN OFF THE CHARTS,” STERNBERG SAID. “THE STARS ARE ALIGNING FOR SOUTH FLORIDA.”
One thing that Canadian real estate simply can't compete with is the combination of down south weather, ocean views, and low taxes. Globally speaking, there are certain US states that provide real estate opportunities that Canadian cities simply can't match. This is certainly the case with many South Florida areas that have demand from buyers US buyers and buyers around the globe:
https://www.miamiherald.com/news/business/real-estate-news/article249767193.html?fbclid=IwAR27aUYWc_I-0SAsIVBH8eo7pibHw9bm_42--tEi48VcTB5bL1j585_M_GI
Is talk of an overheated housing market full of hot air?
IS THE MARKET OVERHEATED WITH SPECULATORS AND INVESTORS, OR ARE THE FUNDAMENTALS OF SUPPLY AND DEMAND DRIVING PRICES HIGHER?
“There aren’t any signs of speculation. The majority of transactions are for owner-occupied properties—that’s what we’re seeing—and we don’t have foreign buyers,” Woodhouse told CREW. “Why is it so hard to understand we haven’t kept up with building housing? More Canadians are living alone than ever before. The notion of the Bank of Canada increasing interest rates to slow down the real estate market is laughable. That’s a notion put forward by people incapable of doing math, because a quarter-point increase to the average mortgage, which is $400,000, raises it by $60.”
Robust fundamentals driving Texas’s multi-family sector
Warm weather, low taxes, and low levels of regulation have businesses and people flocking to the Lonestar State. The population of the major Texas cities is projected to skyrocket over the coming decades as many flee higher tax (and colder) states.
Population growth leads to higher real estate prices as the economics of supply and demand push prices higher.
Looking for the reasons why Canada's housing prices are rising faster than in the U.S.
RAPIDLY RISING REAL ESTATE PRICES IN CANADA AND DIMINISHING RETURNS HAVE CANADIAN REAL ESTATE INVESTORS LOOKING SOUTH OF THE BORDER
Real estate is heavily regulated in major cities across Canada which makes keeping up with demand very difficult and costly. When supply can't keep up with demand, prices rise. The supply-demand imbalance has gotten so out of whack that prices across the country are skyrocketing. The problem with skyrocketing prices is that it makes finding cashflowing assets more-and-more challenging as rents simply can't keep up with prices.
https://financialpost.com/real-estate/looking-for-the-reasons-why-canadas-housing-prices-are-rising-faster-than-in-the-u-s
Tampa Bay rents keep rising, while in some cities they’re falling. Why?
INVESTORS SEE OPPORTUNITY IN TAMPA BAY’S APARTMENT BUILDINGS. THAT COULD SPELL BAD NEWS FOR THE PEOPLE RENTING THEM
'It's crazy. There is no inventory.' Housing industry veteran marvels at real estate boom
The USA housing market simply hasn't kept up with population growth and there is now a shortage across the country. "We've been under-building for the last 15 years," said Mezger.This is the exact opposite situation as the 2008/2009 subprime housing crisis in which developers built TOO MUCH housing and eventually crashed the market. Not only is the USA, like Canada, severely short on housing, but building costs and construction delays are going to make catching up very difficult.
When a high demand resource is in short supply, as an investor, you want to own as much of that resource as possible!
Tesla now hiring for 300 jobs in Austin area; Exec hints at opportunities to partner with local businesses
LOCAL RESTAURANTS IN THE FACTORY? RECRUITING DIRECTOR SAYS MANY KINDS OF LOCAL BUSINESSES NEEDED
It's not overly-difficult to spot a real estate boom, just follow the businesses and follow the money
Why Companies Are Leaving California For Texas (VIDEO)
It's not rocket science to see why companies are leaving California for Texas. Lower regulation, lower taxes, lower real estate costs.
https://youtu.be/IPu1joJv_zk
Corporate interest in Frisco, TX is heating up, city official says
The city currently has 43 active companies looking to set up shop
https://www.bizjournals.com/.../relocation-station-frisco...
Some 11 percent of Americans have already moved in the past year, some by choice and others by necessity, according to the survey. DFW is a beneficiary of what the Zillow report terms the Great Reshuffling, which could cause millions of additional households to enter the real estate market as a result of the pandemic.
https://www.bizjournals.com/da...
Snippet of data highlights how LA, Bay Area are pushing Austin's population into overdrive
11% of Americans have moved in the past year, report says; 'Great Reshuffling' is on
This is what happens when your state is completely mismanaged. Governors who think taxing citizens and corporations is a good long-term strategy are often sorely mistaken. Once a breaking point is reached, they will simply leave.
Coinbase early investor expects many of crypto's future big successes will likely be in Miami, Austin
Check out this quote:
https://www.bizjournals.com/.../coinbase-investor-bullish...
Another tech startup trades West Coast for booming Austin scene
Oracle Corp. reveals River North tech hub plans with record-breaking 8,500 jobs
The thing I love about the US real estate market vs Canada is that the US has MASSIVE multi-billion dollar global corporations that fuel the economy, whereas, Canada is fueled mostly by tight supply, socialist policies, and immigration.
Originally posted by @Scott Innocente:
Oracle Corp. reveals River North tech hub plans with record-breaking 8,500 jobs
The thing I love about the US real estate market vs Canada is that the US has MASSIVE multi-billion dollar global corporations that fuel the economy, whereas, Canada is fueled mostly by tight supply, socialist policies, and immigration.
Totally agree. The long term outlook on the fundamentals cannot sustain this insane market. Prices are up 50% in one year in the nearby to you Chatham market.
Luxury home prices in South Florida have surged as wealthy people flock to the region.
Florida continues to attract wealthy people who are fed up with high state taxes and increasing regulation (California/New York)
New York tech company relocates HQ to Plano amid plan to go public
A technology company moving toward the public markets has shifted its headquarters to the Dallas area from New York City, joining the long list of firms that have made their way to North Texas from throughout the U.S.
US home prices rose 11.9% in February, fastest since 2014
The same thing that's happened across Canada for the past 5 years is now happening across the USA. Short supply, high demand, heavy immigration are driving prices higher. Canada is simply 5 years ahead of the curve. Buy US real estate if possible.
Exodus from California, high-tax states driving unprecedented real estate boom
The pandemic has people re-thinking how and where they live their lives.
https://www.ktvu.com/news/exodus-from-california-high-tax-states-driving-unprecedented-real-estate-boom?utm_campaign=trueanthem&utm_medium=trueanthem&utm_source=facebook&fbclid=IwAR29Okrfjcwu8-LdBpg9wxXejDHWwMS3S5li737aJMZ9EO-sRhYef1CxN0M
Retro Fitness moves headquarters in West Palm Beach
RETRO FITNESS, A GYM CHAIN PREVIOUSLY BASED IN NEW JERSEY, IS THE LATEST COMPANY TO RELOCATE TO SOUTH FLORIDA FROM THE NORTHEAST
Business are tired of lockdowns, high state taxes, and government bureaucracy and are flocking to Florida, which could be the next New York or California of the USA.
Real estate investors across Canada have watched housing prices explode over the past five years because we don't have enough houses to meet demand. The same fundamental drivers are now in place in the US making real estate south of the border a very interesting investment opportunity.
Simply put, when there is more demand than supply, prices go up. The US is short nearly 2 million homes which could take 5+ years for supply to catch up to demand. In the meantime, like we've seen in Canada, prices will continue to skyrocket across the US. Might be a good idea to expand your portfolio south of the border as soon as possible.
Record-high lumber prices add as much as $30K to the cost of building a house
Windsor desperately needs new, affordable housing, which is quickly becoming an oxymoron. With rising building costs, labor, and material shortages, and a lack of centralized land to build on, there are not enough houses to meet rising demand. The new work-from-home economy has people flocking to more affordable cities like Windsor while retaining their corporate earnings from big companies in Toronto.
These high income earners are often selling their residences in the GTA and purchasing double the house for half the price here in Windsor.
Simply put, until supply and demand come into balance, prices will continue to rise.
Tech jobs, sun, and no income tax: experts explain why Florida is poised to keep growing even after the pandemic
More and more workers are moving to Florida during the pandemic — and the sunny climate isn't the only reason why.Top companies are opening new offices in the state, and the rise in remote working is giving staff more freedom to choose where they want to live.Florida's population grew by 2.7 million — or 14.6% — between 2010 and 2020, according to US Census data. This is double the rate of overall US population growth.
Home prices are still going up almost everywhere across the US
There is a shortage of housing across the US. We've seen this in Ontario for 5+ years as prices have risen drastically simply because there aren't enough houses to meet demand. It's just starting across many US markets and it's looking like a very good time to buy real estate in states with rapidly growing populations like Florida, Texas, and Arizona.