Can You Buy Cash Flowing Real Estate in Canada
Home Sales in Canada have traditionally been expensive. In places like Toronto and Vancouver, you cannot expect cash flow from your investments. In Edmonton Alberta there are single family homes for sale with prices so low they may shock you! Especially given the reduced Canadian Dollar. So how do you find cash flow real estate?
The Right City
Most people know Canada for it’s cities: Toronto and Vancouver. However, we have several other successful cities with high average incomes and stable employment. I won’t discuss all of them but here’s a short list:
Edmonton – Median Income of $81,300 (2017)
Calgary – Median Income of $83,700 (2017)
Ottawa – Median Income of $72,700 (2017)
Winnipeg – Median Income of $65,800 (2017)
All of these cities have a population of approximately 1MM. Furthermore, ALL of these cities have an average home price UNDER 500,000 CAD or 365,000 USD (as of March 2023).
The Right Neighborhood
Each of these cities has good and bad areas to buy. The best thing to do when looking for investments abroad is to reach out to local talent. As a realtor in the city of Edmonton I will show you the difference between a neighborhood like Boyle Street and Crestwood. Crestwood is a more expensive neighborhood, but the appreciation year over year is impressive. Boyle is a worse neighborhood with more crime and older homes, it has no property appreciation. I chose these two examples as you can see purchase price matters! Boyle is very cheap while Crestwood is a bit more expensive. I think it’s important to buy a house in an area that is already popular and mostly gentrified.
The Right Real Estate Asset
It’s my job as a Local Realtor to know the type of assets out there, that appreciate well and provide a solid return on investment. If you want to see a more specific assessment of just single family houses, you can take a look at this post on owning versus renting.
When it comes to real estate investing, suited single family houses are your best option in Canada. Canadian Cities are structured, around rivers, lakes etc. neighborhoods with close access to these features appreciate. So, I highly recommend buying a legally suited house in one of these older neighborhoods. I have attached the ROI a client of mine received from a real estate investment in Edmonton.
The reason single family houses have such high cash flow is primarily due to location and space. Many neighborhoods are close to shopping, schools, and parks / city features like rivers or lakes. Space is another factor as Canadians have a lot of pets. So having access to a back yard or front yard, or nearby greenspaces is very important.
If you want to invest money abroad, you should look towards Canadian cities that have high populations, with high median incomes. If you are going to invest in a Canadian city, I would recommend reaching out to a local real estate agent. You should ask that agent if there are any central neighborhoods with cash flowing houses that include a basement suite. If you’re able to find a suited house in Edmonton, Winnipeg or any other large Canadian City you are sure to have invested your money wisely!