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Old 07-30-2019, 06:41 PM
 
346 posts, read 423,286 times
Reputation: 226

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Hey, I'm Canadian and I'm in early stages of THINKING about U.S. property...I have a little bit of money and wanna make some more by buying cheap houses in US markets that look like they're up and coming or tourist areas. I've seen some decent looking housing for very cheap

Like let's say I buy a US property for 50-100k...how much extra would I have to pay based on being from Canada? I have zero experience doing this and will find out any of this before I plunge but I would like to get a basic idea first.

I'm not even thinking about doing it here cus prices are too ridiculous.
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Old 07-30-2019, 10:05 PM
 
Location: British Columbia ☀️ ♥ 🍁 ♥ ☀️
7,413 posts, read 6,671,495 times
Reputation: 14596
Try asking in CD's Real Estate forum too: http://www.city-data.com/forum/real-estate/
.
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Old 08-03-2019, 12:08 PM
 
18,398 posts, read 10,461,433 times
Reputation: 13457
Quote:
Originally Posted by travel-a-lot View Post
Hey, I'm Canadian and I'm in early stages of THINKING about U.S. property...I have a little bit of money and wanna make some more by buying cheap houses in US markets that look like they're up and coming or tourist areas. I've seen some decent looking housing for very cheap

Like let's say I buy a US property for 50-100k...how much extra would I have to pay based on being from Canada? I have zero experience doing this and will find out any of this before I plunge but I would like to get a basic idea first.

I'm not even thinking about doing it here cus prices are too ridiculous.
Well, having bought property in the U.S. I can tell you there is nothing unique about it and yes the prices are or were attractive before the exchange rate went back into the 1980's zone.

The complications are solely related to the exchange rate and the rental or "flipping" income you receive by these means.

Remember to consider isolating your earnings versus expenditures to the extent you're not misleading yourself about your profit to loss ratios.

Remember too that the IRS has some very rigid rules regarding your income gained from U.S. sources and the taxes owed on that income to the point that a judgement can be made to attach your Canadian income with Canada complying with that judgement. You will have to file. don't even think about trying to do this under the table. An IRS audit is akin to you being stripped naked and being orifice probed before a crowd of thousands with them finding you have one more kidney, and/or gonad than you actually need at the moment.

I'd consider investing in other means of return to wait out the real estate bubble bursting in Canada before using Canadian dollars to purchase an American asset requiring you to make over 30% return on your initial investment just to break even.
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Old 08-03-2019, 07:11 PM
 
Location: Somewhere flat in Mississippi
9,612 posts, read 9,487,386 times
Reputation: 6767
Hey, hey, maybe some Quebec farmers are thinking about buying land in the South to try their luck at cotton farming, eh?
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Old 08-04-2019, 07:52 PM
 
42 posts, read 16,107 times
Reputation: 40
After nearly 10 years of building a sizable portfolio in my hometown, I decided to expand into the U.S. in 2012 (in retrospect, this was a good time - the loonie was at par) because the cap rates at that time were great.

Never regretted it; there are many great advantages over my neck of the woods in Canada.

I'm on my phone so I won't be typing a book today, but I can tell you, there aren't really any "extra costs". (What exactly did you have in mind when you wrote this?) However, I really recommend making sure your portfolio is in a place you visit regularly, or where you have trusty relatives or friends.
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Old 08-04-2019, 08:03 PM
 
42 posts, read 16,107 times
Reputation: 40
Quote:
Originally Posted by BruSan View Post
... before using Canadian dollars to purchase an American asset requiring you to make over 30% return on your initial investment just to break even.
This is totally incorrect, for the record.

The right way to look at it is that your real estate investment doubles as a bet on the USD whether you want it or not, and at the exchange rate of the moment. If you "get in" at 75 cents to the dollar for example, if it stays there you're perfectly fine, if it goes up you lost a bit and if it goes down you actually gained.

It hasn't moved much during the last four years... and while I am happy some of my earlier properties were bought at par or near par, I have bought several at ~75 cents to the loonie later on. That isn't a problem at all. They're valued in USD and generating USD, and I treat them independently of my Canadian assets.
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Old Yesterday, 07:44 AM
 
34,549 posts, read 41,719,434 times
Reputation: 30006
Quote:
Originally Posted by Mouldy Old Schmo View Post
Hey, hey, maybe some Quebec farmers are thinking about buying land in the South to try their luck at cotton farming, eh?
While researching that possibility i came across this fascinating video that shows how cotton is picked today , enjoy =

https://www.youtube.com/watch?v=nCohUi4EAo8
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Old Yesterday, 07:56 AM
 
18,398 posts, read 10,461,433 times
Reputation: 13457
Quote:
Originally Posted by jambo101 View Post
While researching that possibility i came across this fascinating video that shows how cotton is picked today , enjoy =

WOW!
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Old Yesterday, 08:05 AM
 
Location: Gatineau, Québec
22,027 posts, read 27,508,798 times
Reputation: 8628
Now wait just one cotton pickin' minute!


(That's not something I would actually say. I just find it's a funny expression.)
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Old Today, 08:46 AM
 
Location: In transition
10,154 posts, read 11,963,442 times
Reputation: 4457
Quote:
Originally Posted by Acajack View Post
Now wait just one cotton pickin' minute!


(That's not something I would actually say. I just find it's a funny expression.)
My grandfather used that expression all the time. When you wrote it, I immediately thought of him
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