Things You Need To Know Before Investing In US Real Estate As A Canadian.
With an average house price of over $800,000 in Canada, it's no wonder that more and more Canadians are looking south of the US to invest in real estate. For much of the pandemic, Canada’s housing market has been on fire, with mortgage originations growing at a record pace.
At the same time, Canadians have also been busy buying up billions of dollars worth of property south of the border. In 2021, Canadians were estimated to have over $5 billion (CAD) worth of real estate in the U.S., making Canada the largest country of origin for foreign buyers of U.S. property.
However, you have to keep in mind that if you're a Canadian looking to invest in U.S. real estate, it's important to understand the process and what to expect including who to best work with. In this blog post, we'll provide a guide for first-time investors, including some pros and cons of investing in US real estate and leveraging gains through these properties. To begin with, the average housing price in the United States is less than half that of its Canadian counterpart, yet rentals are very comparable. Smaller monthly mortgage payments paired with comparable rentals make it considerably simpler to discover cash flow-positive properties in many US cities, but real estate investors in Canada are compelled to buy in tiny, isolated locations in quest of positive cash flow. Some of the best areas to invest in is in the Southeast US— namely Florida, California, Texas, Arizona and Washington. Second, when investing in the United States, one of the most noticeable distinctions is how rapidly areas change. Properties on one side of the road may sell for $200,000, while similar houses on the other side may sell for $100,000. It's critical to understand WHY, because that split might reflect something tangible, such as a ZIP CODE or a school zone district change. Unlike most cities in Canada, walking one or two blocks over in (any town) brings you close to any of these properties--- US may make all the difference. Lastly, landlord-friendly rules (in most of the above-mentioned US states) make it simpler for investors to minimize tenant risk and maximize the profit potential of their properties.
Ultimately, investing in the United States as a Canadian may be quite profitable in the long run. In other areas, you can buy entire apartment complexes for less than what individuals spend for houses in Toronto or Vancouver. However, you have to bear in mind that just like any other investment, investing in the US real estate market comes with a lot of risks. I highly advise anyone interested in investing in the United States as a Canadian to approach with care, ask plenty of questions, and consider working with someone who has been through the process.If you’d love the idea of having someone guide you through the process, our team of expert real estate investors would be happy to help. Our team has over 14 years of experience in raising real estate investments and has since sourced out multiple multifamily properties in the Southeast for as low as $60000 per door. If you are heavily interested, we are having a FREE introduction event to Investing in US Real Estate as a Canadian this 14th of September. If you’d like to know more details, head over to our website and get yourself registered for the said event: https://www.investinginusrealestate.com/How-to-Invest-in-U-S--Real-Estate-as-a-Canadian
