Ontario versus Alberta?

[ycheun2]

Dear all,



I am starting this new thread because the business license bylaws in the City of Waterloo is frightening and I like to get some opinions here.



If I am just starting out to invest in Canada and am based in Ontario, do you think it is a good idea to go cross the province and get into a more capitalist province, like Alberta?



The rent control and the licensing bylaws are making the Ontario government more much more socialist and business UNFRIENDLY and I think more NASTY things may come out against the landlords. I am seriously thinking of going to other provinces like Alberta to look for investment properties.



But since I am just starting out and just joined REIN, do you think this is a risky proposition?



Shirley

 

[ChrisDavies]

There's a lot of people who do it, and I just talked to a client this past week who has sold out of Ontario and is buying here.



The key is to have a great team (Realtor, Property Manager and Maintenance crew) so you don't have to jump on a plane very often, and buy properties which are easier to manage, rent and maintain.

 

[invst4profit]

In light of the fact that you are just starting out I would strongly suggest you start close to home. Within a easy driving distance say 45 minutes.

There is a very steep learning curve involved in this business which would be made easier, if you run into problems, by having the property in close proximity to where you live.

I agree Ontario is very landlord unfriendly however assuming you buy right you do have the option of selling and moving your investments farther afield once you are more experienced.

This is not necessary of course if you are comfortable placing your money in the hands of strangers and allowing them to manage the investment for you but keep in mind you will be responsible for managing them.

 

[Rav]

No one in ontario loves paying the land transfer tax, loves the capped rents, loves paying HST, loves the rules that favours the tenant - everyone here wishes that we had Alberta's rules regardless if you invest in KWC, Hamilton or Barrie/Orillia - its a no brainer - but we live here, if your comfort level allows, OF COURSE, invest in Alberta! If it doesn't allow then make a slower, steady gain here! It's all good! Kinda like fixed vs variable - go variable, but only if your comfort level allows - hope it helps!



Rav Toor

www.ravtoor.com

 

[Thomas Beyer]

[quote user=ycheun2]do you think this is a risky proposition?


ON is close to home and has lower prices !



AB is far away, has higher prices, but also lower op costs (lower property taxes per $1000 in value, lower utility costs and no PST) .. but similar rent .. (depending on city) but (in my humble opinion) MORE UPSIDE.



Ontario is more like Europe (or the US): less resources, more manufacturing oriented, higher taxes, rent control, more government red tape, higher unemployment, higher DEBT, and HIGHER DEFICITS ..



But the cost to operate a small portfolio of 3 houses from afar should not be overlooked !



Check out both places (or 2-3 per province, then narrow it down) .. then
look at SPECIFIC properties in SPECIFIC neighborhoods with SPECIFIC
characteristics ... then decide !

 

[invst4profit]

If what Thomas describes sounds like a lot of work that's because it is. Just one more reason why I recommend staying close to home when starting out in this business.



Plenty of work, time and stress even before you buy your first property.

 

[bizaro86]

[quote user=ycheun2]If I am just starting out to invest in Canada and am based in Ontario, do you think it is a good idea to go cross the province and get into a more capitalist province, like Alberta?




Unless you are able to move to Alberta personally (which might be worth considering, although I obviously don't know your situation) I would invest in Ontario. It makes sense to get the "learning" portion out of the way when the cost of your tuition doesn't include airplane tickets.



Regards,



Michael

 

[bizaro86]

Sorry, double post

 

[housingrental]

I would not invest in Alberta

The cost to properly start and administer your properties unless you have a significant portfolio should give you chills.

I would not invest in Ontario either currently - but dedicate some time to learn for awhile then take action.

 

[Thomas Beyer]

[quote user=invst4profit]If what Thomas describes sounds like a lot of work that's because it is. Just one more reason why I recommend staying close to home when starting out in this business.


Real estate is a business.



Any business takes work.



Any new business takes even more work.



Do the business you love to do with capital you deem appropriate for your lifestyle and risk tolerance, in a location that is conducive for the business. that may be close to home .. or 12,000 km away. Distance has disadvanatges (cost to get there, less oversight) but also advantages (might be a better business climate, less day-to-day hassles if managed well by a person close to it) ! Judge those advantages and disadvantages .. then decide what business in what location is appropriate for you.

 

[JimWhitelaw]

[quote user=ycheun2]If I am just starting out to invest in Canada and am based in Ontario, do you think it is a good idea to go cross the province and get into a more capitalist province, like Alberta? Another option for you to consider is to partner with someone who is here in Alberta and has a top-notch team in place. It's also a good opportunity to work closely with an experienced investor who can "show you the ropes" and walk you through your first couple deals. I've worked with several investors who were wanting to learn from our experience on a couple deals before going out on their own, as well as some who want to be completely hands-off and the property location isn't as important.

 

[markl]

Chris,



Funny I just had someone sell everything out West and is focusing all their investment in the Hamilton area.



I invest where I can build the best and most efficient team to manage my assets.



If your looking for a place to invest REIN has already done a bunch of research for you but you still need to develop the right team to ensure everything is nice and boring.



Regards,

 

[David George]

[quote user=ycheun2]

If I am just starting out to invest in Canada and am based in Ontario, do you think it is a good idea to go cross the province and get into a more capitalist province, like Alberta?



Shirley





Hi Shirley,

If you are based in Ontario I would start out close to home so you can learn everything you need to know about real estate investing by hands on experience, especially what it takes to manage your own properties and find your own tenants. You can eventually delegate that to someone else or a property management company, but I believe you can't tell someone else what you want done if you have never done it yourself before.



As I mentioned, I am still investing in Kitchener-Waterloo even with the proposed by law. You just need to understand what risks there are in the area you want to invest and mitigate those risks.