what works for you in Canada? Ontario

Question

just curious what people are doing in Canada that is working... is anyone making money? esp in Ontario. thanks!!!

Dave Vogt · Answer

I am an hour south of Toronto in the Niagara Region and the house prices our way are actually very reasonable. You can find many good cash flowing investments. Cap rates are good due to the lower carrying costs and reasonable rents.

Me and my partner primarily flip house, but we do own rentals. Personally I am not a big fan of condos due to the fees and the possibility of increases in those fees especially for a long term investment.

I would prefer to stay in my backyard investing if at all possible. Investing in the states as a Canadian has it's own list of problems, both tax related and management related. Had the pleasure of listening to an accountant that specialized in US investing for Canadians. By the time I was done listening I realized that investing in the US was not for me. Too many things to worry about for my taste...not to mention the knowledge of the area you would want to invest in. The numbers look often look really good, but if you want to go this route do your homework.

I strongly feel that Ontario has a very robust investment environment and our company continues to enjoy excellent returns on our flips and our rentals. Obviously Toronto and the surrounding area have seen some major house pricing increases that have negatively affected the returns for investors looking to do long term holds, but knowing your market and doing your due diligence can certainly source out a good investment.

Eric Scott · Answer

Agree with Thane Lanz. I also think that in Canada condominiums are the best  way to invest money. It provides benefits to both owner and buyer. I live in Ontario and Ontario condominium act provides specific protections.  Read this to know more about condominiums act and new condominiums project in Burlington.
	 http://www.sse.gov.on.ca/mcs/en/Pages/Condos.aspx

Gary McGowan · Answer

There are many great Investment strategies. I have never invested in condos. There are certain areas where this does make sense and other areas like Toronto where you would never have positive cash flow.

It also comes down to your investment strategy and I also believe you should start with what type of tenant do you want to attract and work backwards from there.

Ibrahim Hughes · Answer

Is anyone on the North York, Ontario area? I have a dilemma as explained here:

http://www.biggerpockets.com/forums/90/topics/69281-need-help-from-canadian-investor-or-realtor

For your convenience I'll repost here in hopes that someone can help me out. And I'm willing to pay so please respond if you can help. Thanks in advance!

I have a closing coming up at 1pm and I'm having trouble reaching my seller whose supposed to fax us a signed HUD-1. She sent the closing docs last week. But I can't seem to find her (note, she has gone missing a few times in the past - just one of those 'the telephone isn't that important to me' types I guess).

In any event, can someone up there tell me which airport, preferably an 'int'l airport', is closest to North York, Ontario? I'm setting up a contingency plan in case I or my Brother has to shoot up there. Trying to work a couple of other options first.

And does anyone live in that area? I may need your services.

Thanks in advance.

UPDATE: I now need someone to visit her home at an apartment complex on Sheppard Ave West and get a HUD-1 signed. Anyone available?

Mike Jakobczak · Answer

well my thoughts exactly.  Majority of investors usually take the conventional way.  Which limits them.  Just leaves more opportunity for those who seek it.

David Wedemire · Answer

It is a great answer Mike but not a reason to stay out of the US market. No financing forces you to be creative with your purchases. There are so many ways for a Canadian to buy property in the States other than conventional financing

Theresa Matella · Answer

Great Answer Mike!  My Canadian buyers are always cash buyers.

Mike Jakobczak · Answer

I'm from Ontario,

You can't really compare US and Canada when it comes to real estate.

One of the main reason people stay out of the US is because as Canadians we can't get financing to pay for anything.  So cash is king and if you have it you can buy some great deals.

Where have you looked in Ontario?

Theresa Matella · Answer

I have heard that the Canadian foreclosure market is tough because the government controls the bank reduction resale amounts from some family that lives in Ontario.  They decided to invest in the US because the banks have reduced the homes so drastically here.

For Example: If you are looking for a home that you can rent weekly-monthly, etc. then why not look in Central Florida Disney area?  I saw a home a couple of days ago that was 4 bed 3 bath over 1900sq ft. with a pool, fully furnished vacation home for $134,950.  Homes in this area were selling for over $400,000 back in 2006.

Great Rock Bottom Deals to invest in Florida, if you don't find any great ones in Canada!  Good Luck on your future investments!

Thane Lanz · Answer

It is always a good deal to buy condos that cash flow over the long term. Watch for condo fees though, so make sure you include all costs when measuring net cash flow.

My company has a couple of 46% Cash on Cash JV deals available for less than 10% down. Look for developers who can be creative with down payments, as the new CMHC rules make purchasing investment real estate harder than it used to be.

Cheers,

Thane Lanz