“Talked to a Vancouver man who sold all his assets in Vancouver. He told me he bought a newer house in Arizona for $105K that has a renter that pays $850 a month.”

“I went to a real estate seminar in Phoenix and the prices to rent ratios were awesome for investors. Talked to a Vancouver man who sold all his assets in Vancouver. He told me he bought a newer house in Surprise Arizona for $105,000 that has a renter that pays $850 a month. I guess Canadians have higher incomes for higher price real estate.”
happy renter at greaterfool.ca 4 Mar 2013

21 responses to ““Talked to a Vancouver man who sold all his assets in Vancouver. He told me he bought a newer house in Arizona for $105K that has a renter that pays $850 a month.”

  1. Surprise Arizona averages over 100 degrees F for the months of June – September. Surprise! Hope the house has air conditioning. Record highs are in the 120s. Now for us rain lovers here in Vancouver it might seem like a welcome break but wow, that is hot!

    Understanding that Vancouver MOI is high right now, does anyone have any current informaton on MOI for markets in Arizona. It might be a lot cheaper to get into the market in Surprise but how about getting out?

    • Ralph Cramdown

      I would imagine their local real estate board would have MOI info. Why look, they do!
      http://paronline.com/resources/market-statistics/

      The exit strategy for a decent property with a decent cap rate is usually pretty straightforward. It’s things that don’t pay you to own them that are difficult to unload.

      • Thanks Ralph. I google mapped Surprise. It looks like a place that the folks from Edward Scissorhands would spend their winters. Same houses, same lots, etc… But if they are willing to rent for $850 a month ….

  2. You also need to deal with any cross border taxation problems. Unless you are willing to open up yourself to IRS, I hope the potential return justify these headaches.

  3. I was talking to a friend earlier today, He’s getting worried about his parents financial situation…

    Get this.
    $2.6 million invested in real estate… all in the Lower Mainland.
    $1.4 million or mortgage debt (54%). Dad is over 70, mom not much younger.

    Imagine a collapse of 50% of the market in the LM. The entire’s family net worth would be wiped out. Really scary. The irony? They want to invest even more in real estate (because they lost so much money in mutual funds…).

  4. Aldus Huxtable

    Arizona is fantastic. Anyone who complains about weather over 100 needs to embrace exhibitionism, skin cancer, air conditioning and sunscreen.

    On top of that, check it the costs of insuring a vehicle there, food etc, day to day cost of living makes us look like fools here.

    I spend a reasonable amount of time in Phoenix and my discussions on RE with people evokes strange emotions from them as they see the dark specter of a crash far easier than we do with their hindsight.

    You can shop at whole foods in Phoenix and pay less than Safeway west end prices.

    • Aldus Huxtable

      I meant to add I have overheard friends conversations about investing in Arizona, you can buy a 12 unit condo building for the price of an east side teardown apparently.

      • back in 09, i have seen ads in papers here from Phoenix realtors that are selling 50+ units apartment building for $1M!!!

  5. Anyone knows any resource or have referrals to lawyers and accountants that specializes in owning investment RE in US? Specifically I’m thinking if it would be better to put everything into corporations as a way to reduce legal and tax hassles?? You know, like put the house into a locally registered corp. Create a company here in Van and put the house purchase $$ into it. This Cdn company then lends out the $$ to the US RE holding company and the interest rate is set every month so that all profits are extracted out back to Cdn company. The Cdn company then pays out the money as dividends, hopefully as qualifying small business and enjoy those ultra low tax rates? Does that sound reasonable?? Anyone have expereinces with this??

  6. Vancouver has lower incomes than Detroit

    • The Wings, Lions, Tigers, Pimps, Ted Nugent and Pistons skew the average income in Detroit. I think only the Canucks and the marquee players on the Lions and Caps earn over the Vancouver average wage.

  7. A real estate seminar, ug.

    I’d want to carefully check anything they’d claim, especially if there’s a big overhang of homes that could come on the rental market suddenly.

  8. Not easy being in 60-70 years old now days. After doing well stock markets and GICs in 80 and 90…..came the CRASH…most folks lost 20-25% in investments. Then a lot of them shifted to real estate since GIC give you what ? – 1-1.5% a year in return.I don’t know anybody who made a good profit in mutal funds after paying the bank for missmanaging it – some are at par. Now, they are looking at 10-20% drop in real estate value in next 1-2 years. The loses are easy to see, folks are getting poorer and….the banks have record profit regardless. Do you still believe the banker is your friend ?…or just a salesman working on commission? Easy to see a pattern.
    The older folks need to learn to let go, not easy to deal with stress at 70.

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