General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
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.
The fundamentals of multi-family investments are as strong as ever. Rents are rising rapidly and helping to offset higher borrowing costs which is allowing multi-family business owners to ride out the wave of rising rates.
Even if rates rise much higher than expected in the fight to beat inflation, apartment investments would probably survive, says Borsos. Investors are likely to hunker down and wait for the capital markets to get back to normal, he says.
- Data is backing up what many multifamily buyers and sellers already know — cap rates are rising for apartments around the country.
- A new report from CBRE says that going-in cap rates rose 33 basis points to 4.09% in the third quarter. In the second quarter, they jumped 39 bps (their biggest increase in a quarter ever) — marking a 72 bps increase over six months. Still, they are below their fourth-quarter 2019 level of 4.16%.
- Exit cap rates, or the rate used to estimate a property’s value at the end of the holding period, increased 21 bps in the third quarter versus 30 in the second quarter. However, the current 4.63% exit cap rate sits below pre-pandemic levels. Internal rate of return targets passed the pre-pandemic average, rising 35 basis points to 6.39%.
Cost of ownership is skyrocketing, which is pushing rents up. With cap rates rising, Blackrock is focusing on cash flow with multifamily acquisitions.
https://www.multifamilydive.com/news/blackstone-sees-for-sale-cost-increases-driving-rental-demand-investment-capital-housing/635265/
Thanks to the region's history of innovation, abundance of talented students from local universities, and the many top companies located there, industry analysis shows 226 optics and photonics companies in Arizona and about 7,700 jobs in the industry. Estimated $4 billion impact on the local economy!#arizona #phoenix #jobs #realestate #USArealestate #investing
While the rental market in some major cities like San Francisco, Boston, and New York continued to struggle with declining rents, other areas like Sacramento, Tampa, and Las Vegas saw significant rent growth. RealPage also reported that the overall occupancy rate for U.S. apartments was 95.8% in February, up slightly from 95.7% in January. However, experts predict that rent growth will pick up in the coming months due to increasing demand as the pandemic situation improves and more people return to cities.
Windsor finds itself at the center of the EV revolution that is reverberating throughout the province. This next wave of investment is sure to have a significant impact on our local realestate market. Perfectly positioned with a 100 year automotive history, a large blue collar workforce, and proximity to the USA with 3 international border crossings, Windsor will benefit from Billions in investments over the coming decades.
Several large companies, including Goldman Sachs, Blackstone, and Citadel, have recently announced plans to relocate or expand their operations in Florida, citing the state's favorable tax policies, business-friendly environment, and quality of life as reasons for their move. As a result, demand for commercial and residential real estate in Florida has surged, with prices and rental rates increasing in many areas.The article suggests that this trend is likely to continue, as more companies seek to take advantage of Florida's business-friendly policies and growing economy.