Real Estate Investor · Toronto, Ontario · Member since 2017 · 7 posts · 1 vote
To anyone investing in Real Estate in Canada
Just wondering, for anyone who has been watching the Bigger Pockets podcasts online. Do you find the information relevant to the Real Estate in Canada? Or helpful when looking to invest?
I can't seem to imagine doing the same thing here (Toronto area)- the same way as they are explaining it online- wholesaling, flipping, etc. due to our prices being astronomically high.
To give you an example, a 4 bedroom, fully-detached house that is about 2500sq ft would normally cost about 600k or more. It's a lot more in certain areas.
Simply put, it is ridiculous.
Our gov't has also implemented new rules that make it tough for investors to make money doing real estate.
My question is, should I look elsewhere to invest?
Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
9y
Miko Dimagiba
Yes, we find the information helpful for our Canadian investments as well.
You can make money in Toronto - it all depends on your strategy. Like all high growth cities wholesaling and high cashflow are nearly impossible. However, buy and hold, fix and flips are very doable.
If those aren't your thing you may want to look elsewhere. We have property in Canada but primarily do most of our deals in the US.
Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
9y
Miko Dimagiba
Yes, we find the information helpful for our Canadian investments as well.
You can make money in Toronto - it all depends on your strategy. Like all high growth cities wholesaling and high cashflow are nearly impossible. However, buy and hold, fix and flips are very doable.
If those aren't your thing you may want to look elsewhere. We have property in Canada but primarily do most of our deals in the US.
Yes, we find the information helpful for our Canadian investments as well.
You can make money in Toronto - it all depends on your strategy. Like all high growth cities wholesaling and high cashflow are nearly impossible. However, buy and hold, fix and flips are very doable.
If those aren't your thing you may want to look elsewhere. We have property in Canada but primarily do most of our deals in the US.
I'm also in a high growth city - Vancouver BC. Most of the fix and flips strategies I've seen on BP are for homes that are very cheap. Do the same strategies apply to more expensive homes (1 million +)? Are margins on fix and flips typically higher or lower for more expensive homes? I'm starting my investment career soon and would love to hear your Canadian investment strategies as most of the info found here are from State-side.
This is precisely why I started investing in the US about 4 years ago. There are way more opportunities and price points about 1/10 of those in Toronto. Sure you won't make as much per deal, but you also don't have the same degree of risk, such as a falling market which is starting to happen now in the GTA.
I agree with you. The degree of risk is tolerable.
As a Canadian however, how would you invest in real estate in the US? Do you need a special permit? or Do you need someone to represent you in order to buy or sell.
I agree with you. The degree of risk is tolerable.
As a Canadian however, how would you invest in real estate in the US? Do you need a special permit? or Do you need someone to represent you in order to buy or sell.
No special permit is required, however it is best to engage a realtor who is investor friendly and if possible one who has represented Foreign Nationals. You will have to pay taxes on any rent collected or capital gain upon sale in the US, then pay the remainder in Canada - minus the taxes already paid to the IRS as Canada's are always higher )-:
Investor · Tampa, FL · Member since 2016 · 334 posts · 215 votes
9y
Originally posted by @Account Closed:
I'm also in a high growth city - Vancouver BC. Most of the fix and flips strategies I've seen on BP are for homes that are very cheap. Do the same strategies apply to more expensive homes (1 million +)? Are margins on fix and flips typically higher or lower for more expensive homes?
Hey Magnum,
Your margin should be based on several factors:
-your time and effort
-market conditions
-your risk
The same strategies will work whether it's a $100K flip or a 1 mil. You may have a higher margin due to some fixed costs being the same but otherwise you should be able to apply the same principals.