Canadians are continuing to head overseas to invest in real estate. The resilience of housing prices here and a strong Canadian dollar are making overseas investments look more attractive than those in our own nation. It is much safer to invest in a market such as the United State or Mexico, when real estate prices in those nations have all ready dropped to historical levels. Having a warm weather vacation home is a great long term investment and feels great when you tell your friends and relatives about it! It is the type of investment that you can enjoy while it appreciates in value. Investors have decided that the collapse of the U.S. real estate market is an opportunity they will take advantage of. A major shift in personal assets such as this needs planning and financial re-structuring. In some cases, houses abroad have been purchased without having to use local banks in the respective country. Buyers have sold their Muskoka cottage, or used savings, skipping tougher mortgage qualification process entirely, and paid cash for their home away from home. According to the U.S. National Association of Realtors (NAR), the number of Canadian buyers who used cash to pay for U.S. properties jumped to 81 per cent in 2009 from 47 per cent in 2007. Canadians were also twice as likely as any other foreign buyers to pay in cash. A recent report found that risk averse Canadian households are sitting on up to $1-trillion in cash and near-cash holdings.Homes in Mexico are a fraction of the price of their nearest Canadian counterpart, and combined with the higher interest rate there, encourages Canadians to pay cash for their Mexican properties.The number of Canadian buyers of U.S. properties eased to around 27,000 this year from 40,000 in the NAR’s 2008 study, but remains well above 2007 levels, when exchange rates and housing costs were not as favourable. Canadians were the biggest international buyers of U.S. real estate in 2008 and 2009, ahead of the United Kingdom, Mexico, India and China.Recent changes to the Canada-U.S. Tax Treaty helps prevent the double-taxation of Canadians, however all investors should become familiar with the local laws and tax system in the nation they choose to invest in.
Canadian banks, in general, will not provide mortgages on overseas properties. So, Canadians who choose to get financing here need to apply for a line of credit or raise the mortgage on their property in Canada. Consulting an expert with knowledge of both nation’s tax, mortgage and estate planning laws is a good idea for those wanting to take the plunge.
Most important to your purchase is to have a connection with the area you are investing in. Learn about the customs, the people and life there. You must love living in your vacation home even more than your primary home. This, more than anything will make overseas investment a profitable venture.
LloydsTSB is the largest UK bank…currently we have a Rep office in toronto which specializes in International Accounts and International Mortgages…we will finance purchases for investment and retirement homes in 11 different countries…if interested please call me at 416 642 5613…Cheers
I own a property in Mexico, its worth about $175,000 lets say 2.1 million pesos. A neighbour is trying to sell the same house as mine to an American for $2.1 Million dollars! So be careful. The poor guy might buy it, to an American it must seem like a good deal. But he doesn’t know the price of property, and thinks he does. Dangerous!
I think everyone should own a cottage by the beach before buying their home. The requirements of your home change over time, while the requirements of your beach house will not! Sun, Sun sun!
investing in the us might look good but right now is very risky. i would prefer mexico to the us and even canada doesnt look good to me. at least in mexico you know things cant go any lower.
There are problems for foriegners who want to buy property near the sea (beach) in Mexico, these are the most popular properties, and a foriegner is restricted from purchasing them.
Pay attention to Europe. They have real problems with their currency, productivity and social programs. Property there will look cheap to even us Americans.
I know enough not to invest in American real estate, but I would never invest in a country I do not know the laws.
Can you send me some information about investing in Brazil?
Just dont buy anything in Arizona! For that matter don’t do business with anyone from that state either.
You guys are smart. Look at my life, I get a raise, I get taxed more, so I am going backwards. If I could I would move down there, even Florida the cost of living is better than Toronto.
Honduras is a great place to buy now, and the process is very simple.
India number one country in the world for investment. This is very true.
Different countries, have a different mixture of competencies, one country has a good financial system, another a manufacturing base, another a resource economy, and another a textile based economy. the fluctuations in these various markets will cause fluctuations in the real estate values as well. so by diversifying your real estate in different countries, you can sell in a high country and buy in a low country. thats how to make money.
Don’t buy property by the beach. There are so many for rent, you get a better deal. Much better than if you had bought it. So dont buy – rent your beachfront property!
Get to know your neighbours if you will be away from your property for long periods of time. They will be valuable to you.
I a thinking of buying real estate in brazil but I am worried. what if something happens in venesuela. what will happen to my investment.
Look into Korea! we will be the next hot nation! we have good government, trade and economy! We have smartest workers, and inventors!
You must pay close attention to the currency whereever you buy. values of homes may be going up in that nation, but the currency could be dropping. You are essentially making two bets when you buy overseas.
Investing overseas is wonderful if you are just starting out. You don’t have to invest as much as you do here in Toronto, and you get a good property for your money (compared to here) The prices are so low, you may not even need a mortgage. So buy one, then see how it goes, then buy another. Once you got a few down wherever, sell them, and with the money you can put a downpayment on a Toronto property. HAHAAH as if!
So buying overseas is like training for investors? make your mistakes on a cheap property.
I can see the merit in spreading your assets in different locations around the globe. thankyou!
I learned more reading your website than I have all week long, genuinely wonderful.Thank you.