Investing as a Foreign Buyer
Let’s hear from Ricky from South Florida! | Investing in Canadian real estate as a foreign buyer can be exciting, even with challenges like the foreign buyer ban. With the right plan, you can still find success in this market. Ricky, a recent buyer from the U.S., shares why he chose Saskatoon as his investment spot, the hurdles he faced, and how he overcame them from abroad.
Ricky’s Insights - My Challenges + Strategies:
When buying, consider a property with at least four units. This can help you sidestep foreign buyer restrictions and move forward with your investment. Be ready to put down at least 20%, which is much higher than the 5% typically required for first-time home buyers in Canada.
Do your homework. Have cash ready for inspections and be flexible if things don’t go as planned. Patience and thorough research are key—take your time to analyze cash flow and other essential details to make intelligent decisions.
A solid local team is crucial, especially if you can’t visit the property in person. Trusted professionals make all the difference. My realtor, Taylor Morrison, managed the process smoothly—she had helped me with a property in Kansas City before, and her expertise was a game-changer. A good mortgage broker (shoutout to Jasmine Floch, who handled the finances perfectly) and a reliable property manager are also essential for keeping everything on track.
Why Saskatoon?
I set a big Champagne Goal for 2024: to buy a multi-family complex. I wasn’t sure where or how, but I knew what I wanted. After some research, Saskatoon stood out as the best place to make it happen. Unlike expensive markets like South Florida, Saskatoon offers more affordable properties with solid cash flow potential. Its growing economy, driven by sectors like tech, agriculture, and education keeps rental demand steady. After crunching the numbers, I knew Saskatoon was the right choice for me.
Final Thoughts:
To succeed in Canadian real estate as a foreign buyer, look for properties with multiple units, be ready for a 20% down payment, do your research, build a strong local team, and explore up-and-coming markets like Saskatoon for better opportunities.
