Believe it or not but there is a country where 15% rental returns on IP’s can be found. And no, its not a third world country in Africa it has been voted by the UN as the best place in the world to live – it’s CANADA.
If you dont believe me then visit http://www.mls.ca and do a search. Towns in Alberta and British Columbia have houses for sale for approx $30,000 with rental returns of over $450 per month. I have visited many of these towns and they are not hick little ghost towns, they are booming towns with new factories opening, WALMART and other major stores opening there also.
I’m an Aussie now living in ALberta and my whole Investmant Strategy has changed. I’m half way through selling off property that I purchased in the early 90’s in Brisbane and investing in a country where Positive Cashflow is a possibility.
<<voted by the UN as the best place in the world to live – it’s CANADA.>>
Ahh my home country. A fabulous place and magnificent people.
I’m envious Rigby.
Rigby,
Good on you!!! You are very fortunate…
Good luck with your investing there.Canada is my Number 1 destination for a holiday…(ONE DAY) !!
Wayne, just curious, do you invest there also?
Regards,
Del
Originally posted by wilandel:Wayne, just curious, do you invest there also?
Regards,
Del
No Del, but certainly worth a look based on what Rigby has shown us.
<<Canada is my Number 1 destination for a holiday…(ONE DAY) !!>>
You won’t be dissappointed! Pass on the US, go straight to Canada.
Cheers
man – what you can get for 300k is amazing….im moving!!!
What are the legal requirements for non-residents purchasing property in Canada?
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
how do you get finance for houses oversea’s?
Hey Rigby,
Amazing country and fantastic people! Does Edmonton still have the largest shopping mall in the Northern Hemisphere?? My ex is from a town called Innisfail and came to know the area well!
Out of curiosity, what would be the differences in the rental market in Alberta, compared to Australia. Just asking as Alberta has some pretty cold winters (minus 35 was my record!). Just trying to generate some discussion about the things to look for in purchasing and how maintenance might differ!
Very jealous!!
Female, you apply to the lender in the country you want or secure the funds against Australian property and buy overseas without a mortgage.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Canada has no negative gearing tax deductability. Hence less speculative component. Funadamentals are strong. Nice ski fields too.
Overseas property is worth looking at but risky if you are not a local. Still a small foray can surprise on the upside. China and S/E asia have been going gangbusters recently. I visited Vietnam 10 years ago and was amazed that you could get a piece of CBD saigon for chips. I bought a bit of industrial property there through a local. There is a lot of legal risk so I only invested 30k. Simillar properties are now selling for 300k. So maybe it is getting a bit frothy there.
Don’t bet the bank on foreign property. But it can diversify your portfolio and be a nice little earner. And it is nice to see markets where the risk:reward is attractive and you do not feel like you are pushing sh*t up a hill with your nose with nosebleed rental yields
Cheap deals can still be had in Canada, Germany and eastern europe for the more risque. Also you learn interesting things about the locals and you get a wider perspective. I was in Germany last year so spent a day looking at the property market. After a looking at a few vacant properties I asked, hey why have these places got no light fittings ?? The guy said : light fittings are not included when you rent a place out. I thought what the fu ? They explained to me that most Berliners rent and you bring your own light fittings and take them with you when you finish renting there. That is pretty weird and may explain why the german economy is so stuffed up !
Thanks for the responses.
To Answer some of the questions –
1) As a general rule banks here require a 30% down payment on property purchased if you are not a Canadian Permanent Resident or you do not work in Canada. 30% on $30 – $40,000 is not much though!
2) Edmonton still has the largest mall in the world. I havent been there, not too much +CF property there.
3) Vacancy rates vary – I own one +CF IP on Vancouver Island that is in a town with less than 1% vacancy rate. This town is growing at such a rapid rate due to many factors – lifestyle, climate, jobs, tourism etc. Property is still unbelievable cheap there. During my last six months research here I have also found some towns that have +20% vacancy rates. If you are keen to invest in Property in Canada I recommend visiting here and doing lots of research and driving around when you are here.
4) As a warning some houses that you may see on the web seem like such a great deal with + 20% rental returns. I have inspected some of these houses and generally belong in towns that have declining populations and high vacancy rates.
4) I am no tax expert and dont invest in negatively geared property but it is my understanding after talking to other investors here that you can Negative Gear property in Canada and write off depreciation.
5) Capital Gains Tax works exactly like it does back home in Australia.
The only bad thing about Canada is that its -10 degrees outside right now!!
Canada has a 50% CGT rebate as in aust (for residents and non residents) but I thought there was no neg gearing deductability allowance. If this is not the case how do you account for the high relative yields compared to even the US ??
these yields are still possible in the US as well, am currently researching, and looking at a buying trip early next year, i have somone on the ground int he US who i will partner up with, gotta have local knowledge i think, massive advantage than going in cold nad not just on locations and property but all the admin stuff too
when the going gets weird the weird turn pro
Obiwan,
I’ll find out in a few days about the Negative Gearing aspect of property in Canada. I dont know the US market that well so I wont comment on yields there but some major bonuses of Canada are:
– that the currency exchange rate is almost 1:1
– interest rates are more than 1% lower than Australia,
– property management companies exist like OZ,
– Strong government and secure place to invest,
– More people are migrating to Canada than anywhere else.Personally I’d feel very insecure investing in China or Vietnam where I dont speak the language, dont know the culture and have little faith in the government due to corruption.
Canada has no negative gearing tax deductability. Hence less speculative component. Funadamentals are strong. Nice ski fields too.obiwan, I just finished reading Steve’s first book and in it he states:
The preferred weapon in the fight to achieve capital gains return in Australia, New Zealand and Canada in something called Negative Gearing – pg 348, 0 to 130 PropertiesHas the negative gearing deductability changed in the time that the book has been written? Or is there some minor difference that makes NG different?
Confused [wacko]
Chance favors the prepared mind.
im unannounced
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