First time investor. Buy in ontario or in the U.S.

[Jeffrey Reynolds]

Hi Everyone,

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

[Roy Cleeves]

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.