Foreign buyers in the USA

Move over China, Canada has become the top foreign investor in US real estate.

A report from commercial brokerage Marcus & Millichap, as reported by the Tampa Bay Times, found that, “an influx of cash-laden foreign investors, especially from Canada and South America, are targeting assets in Tampa Bay for lower entry costs and higher initial yields.”

It’s all pointing to signs of limitless, massive growth opportunity.

While opportunities across the United States are, in fact, limitless for Canadian investors, the key to investing well is to identify hot spots others have not identified. Take Phoenix, Arizona, for example, where Talia Jevan Properties Inc.’s High Income Real Estate has been aggressively buying property.

“Phoenix became one of the most battered real estate regions in the country,” noted Harmel Rayat. “Nowadays, the region just finished securing $430 million in deals in 2013 alone thanks to higher occupancy rates, falling unemployment, and opportunities for strong population growth.”

Read the full article here.

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Sport For All

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Orthomol Natal What phrase… Super, a brilliant idea

OV

A new house on an average sized lot costs you $1.25 to $1.8 million in Richmond, BC.

I think everyone can agree that AT LEAST, HAM has an impact on the “high-end”.

My Question: Is Richmond “high-end”? Because no COC with a CMHC loan can qualify for a new house on an average lot in Richmond.

Ulsterman

Thanks Vangrl

vangrl

I bought one in the late 80’s, when I was very young, it was a rental building that some guy bought and stratified, and then offered a discount to renters before putting the units on the market. I bought it for $120,000, so that unit was long paid off. The other unit is in the same building and I bought it I believe in 2001, or maybe 2002, for $179,000, and it was also paid off when I sold it. I sold that one to an investor and I’m renting back that unit.

Dividend income is the best! if that’s your only income you can make up to close to $60,000 without paying any taxes.

Ulsterman

Vangrl, wow! Kudos to you for your very astute investments. If you took your 720 and are up 44% you have over a million invested churning out your 55k in dividends.

I’m assuming that if you cleared 720 on two one beds that you must have been essentially mortgage free. Do you mind my asking when you bought? I’m not looking to pick holes, I’m just curious.

I’d love to be in your position!

bert

from up your ass ham.

ham

ubc in crisis mode:

and where are these numbers coming from? Source?

bullwhip29

@ 23 & 25

cpp comments meant to be a little tongue in cheek…obviously

having said this, you look at what blackstone has done in the us following their RE wipeout. probably the biggest landlord in the country now. would be rather amusing if many owners wound up renting from CMHC (at below mkt rates)

joe

It’s not just investors who are looking South. Now that many accommodative Canadian policies have helped to jack prices in urban Canada to kingdom come and made it difficult to start a family, I know where I’m starting to look.

vangrl

Joe Mainlander
“REBGV Benchmark Metro Van Apartment price:
July 2008 = $367,600
July 2014 = $376,500”

Sweet!

I sold 2-1 bedroom apartments in Kits, 1 in the spring of 2009, and 1 in the summer of 2010.

I took all the proceeds ($720,000) and invested it in dividend paying stocks. I’m up 44% or $$321,000 (including reinvested dividends). My dividend income alone is close to $55,000 a year now with all the dividend increases over the years.

If I held on to those condos I’d maybe be worth about $20,000 more, but I’d also be looking at strata fee increases because of the recent depreciation report & higher property taxes, plus I’d have to pay for this bloody stove that just crapped out on me.

Best decision I ever made!

The Man

@# 26 Rennie vs Lamb?

Unless those sneakers he wears make Rennie a fast runner, my money is on Lamb getting Rennie in a headlock screaming like a girl within 30 seconds.

UBC in crisis mode

Van West July 2014 Sales (buyer’s market):

July Van West Sales
Listings Sales Sale/Listing Ratio
Area (%)
Arbutus 52 5 9.6
Cambie 40 8 20.0
Dunbar 81 16 19.8
Kerrisdale 60 7 11.7
Kitsilano 41 6 14.6
Marpole 59 6 10.2
McKenzie Hts 30 4 13.3
M. Pleasant W. 3 1 33.3
Oakridge 31 0 0.0
Pt. Grey 86 16 18.6
Quichena 35 3 8.6
Shaughnessy 84 8 9.5
SW Marine 40 4 10.0
S Cambie 18 0 0.0
S Granville 118 9 7.6
Southlands 36 3 8.3
University 14 1 7.1
Total 828 97 11.7

paulb

New Listings 160
Price Changes 83
Sold Listings 95
TI:16431

http://www.paulboenisch.com

Best place on meth

“Can a nation have two kings? I think they need to both go on a TV reality show to battle it out.”

I will pay good money to see this if it’s a fight to the death.

patriotz

@23:

CPP is already a major RE owner. Interestingly only 15% of holdings are in Canada:

http://www.cppib.com/en/what-we-do/real-invest-overview.html

CPP owns the same kind of RE as REIT’s – i.e. large properties. SFH or condos would make no sense for such an investor even if the price were reasonable.

Also it should be noted that contrary to what a lot of people think, CPP is not controlled by the federal government, but jointly by it and the provinces and the feds cannot give it orders what to invest in.

CONservatives

liberals know that HAM is a myth and that this bubble is fueled easy credit thanks to the CONservatives.

http://www.liberal.ca/newsroom/just-the-facts/reality-check-budget-2013-conservative-record-skilled-workers-immigration/

Loon

@Bullwhip # 11

I’m not convinced that CPP/CMHC will be the knight in shining armor that you suggest. With waves of foreclosures and write downs, they’d most likely wait on the sidelines until it’s too late like most gov orgs.

HAM usually like to by premium status symbol products, by that time Canadian real estate may look like an investment for ‘poor people’. Perhaps we will have PAM (poor asian money) buyers by then ?

This is hypothetical situation but it must be discussed and explored as it is entirely possible, so I thank you for your comment.

Bull! Bull! Bull!

once they get PR or immigration, they aren’t foreign anymore. even if they aren’t actually in the country – see canada’s exit loophole and new treaty to share entry exit info with east asian countries.

Joe Mainlander

#19 Yes.

Interestingly, for the last ten years sales were usually in the 35k-50k per year range, both side of Fraser. (less in ’08 of course)

So, even if all those 4400 foreign owned properties were bought in the last ten years that would still be around 1% of sales volumes. Unless Landor is way off, it does not appear that foreign ownership could have any significant impact.

patriotz

@18: “Realtor and developer Brad Lamb – known as Toronto’s “Condo King” – says half of Toronto’s condominiums are in the hands of investors. More than double the 17 percent stated in a Canada Mortgage and Housing Corporation (CMHC) report released last week. ”

We have already established that the CMHC report does not indicate that the total % of condos owned by investors is 17%. Next Lamb is quoted as talking about % of buyers which is not the same as % of owners, without any comment from the writer. Useless article.

I would not be at all surprised if 50% of buyers (not owners) in Toronto or Vancouver are investors.

patriotz

@16: ” Perhaps they are leaving out purpose-built rental units and basement suites.”

They are not leaving out anything. Many properties (a property is something with its own title) have more than one dwelling, so more dwellings than properties.

“Still, if less than 1%, foreign buyers are insignificant.”

Foreign owners not foreign buyers (stock not flow). Probably foreign buyers are higher but still in single digits.

Many Franks

@Mondo Condo: Here’s a thick slice of idiocy…

But is 50 percent [investor ownership of condos] such a bad thing? Lamb believes the massive discrepancy in the numbers is coming to the rescue of young urbanites starved for apartments and unable to buy houses.

“In Ontario we haven’t built any apartment buildings really in the last 45 years. If we aren’t building apartment buildings and people can’t afford houses, where are they going to live? The market has picked up where the purpose built housing market has left off. We build apartments that are 300 to 700 square feet for young people to live,” said Lamb.

As though the two are totally unrelated…

Mondo Condo

“Toronto ‘Condo King’ debunks CMHC study” BNN

http://www.bnn.ca/News/2014/8/14/Condo-King-debunks-CMHC-study.aspx

Toronto has a Condo King?! I though Bob Rennie was the Condo King.

Can a nation have two kings? I think they need to both go on a TV reality show to battle it out.
Condo King: East vs West.

Joe Mainlander

@#15 – GVRD Metro Van Housing Handbook 2014 (2011 stats) states 890k for ‘occupied dwellings’. Landcor states ‘properties’. Perhaps they are leaving out purpose-built rental units and basement suites.

Still, if less than 1%, foreign buyers are insignificant.