Originally posted by @Roy N.:
Originally posted by @Account Closed:
I am a US Citizen and I would like to begin investing in some properties in Canada with a friend of mine that is a citizen of US and Canada. I would like to learn more about what steps i need to take to be able to purchase these properties, and then be able to maintain the properties physically in Canada. I am wondering if i would need to either obtain work visa authorization to travel to Canada and maintain the properties, or if there would be some way to gain citizenship/permanent residency through these investments. Would we need a corporate entity set up in Canada for our partnership? We intend to purchase 2-4 properties within the next 12-24 months and depending on how it goes, continue to expand from there. Thanks so much in advance for any thoughts or suggestions.
Ray,
My first question would be "why would you wish to purchase rentals in Canada given prices here are crazy and returns in most parts of the country will pale in comparison to those you could obtain in the U.S.A. .... even with the current 20% on the dollar?"
Now that that is out of the way, are you planning to purchase residential (1-4 units, sometimes 5 & 6 with certain lenders) or commercial properties? How do you plan to finance these properties? If your friend is resident in Canada, s/he will be able to access conventional financing. If you are investing in commercial properties, you may be able to obtain financing even if neither of you are resident.
There is a programme whereby one can invest in the country ($75 - $200K+) and/or operate a business for a period of time as a path to obtaining permanent residency, but I do not know if it is open to U.S.A. citizens ... we mostly encounter folks from the middle east or Asia using this programme.
As far as setting up a Canadian corporation, it will really depend on your longterm objectives - whether you wish to retain earnings in country or repatriate them and your present tax situation. You would be best advised to seek out both an accountant and lawyer who specialize in cross-border investment to help you plan your execution.
Roy,
Thanks for the response, i will look into the programs you mentioned.
As for why i would like to buy in Canada there are many reasons. I have 1 property in Palm Desert C.A. this will be where i will be investing most my time and money. My friend who I would be partnering with is set on moving to Canada we both travel about 6 months out of the year so he will need help with the management side of things. I will also be adding value to the deal by handling construction work and other things like that. This will mean he will be putting up most of the money. We will be looking at single family homes and duplexes where we could live in it and rent rooms out. Even though its all speculation at this point the places we are looking has a large body of water that takes about 45 minutes to drive around and enter the city they are currently building a bridge that will make that 5 to 10 minutes so i would assume this will make it a more desirable Location.
However this may not pencil out after all that i have read there are extra fees and taxes they may make this very difficult. I talked to lawyer who had me call immigration services but getting someone on the phone that new what they were talking about was hard. I will continue to research and let you guys know if i find anything.
Thanks for the help
