New Brunswick to implement rent control of 3% next year. What markets are left for investment in Canada? US Investing Workshop completed. Pros and cons of multi-family, investing and developing in health care buildings with guest Dr Wing Lim.  All this and more on the Truth About Real Estate Investing Show for Canadians.

I’m your host Erwin Szeto, 4X Realtor of the Year to Investors in Ontario, an award I’ll never win again because, in general, the everyday investor shouldn’t be investing in long term rentals in Ontario unless they hate cash flow and love having no rights as a landlord. Instead our Realtor work in Ontario consists of helping our clients maintain what they have, navigate the impossible LTB, help them sell their investment properties for maximum ROI.

Widely considered the best practice when selling is wait for the tenants to leave on their own then renovate to maximize returns on sale price.  Note that tenanted properties in our experience sell for $50,000 to $70,000 less and take nearly twice as much time to sell.

Keep in mind, real estate rental property is a business, the long-term tenant is your customer.  In what business where having a paying customer devalues the business?  It’s not a business I would recommend for my clients, friends or family.

If you have friends in real estate like I do, notice how so many are in short and mid-term rentals, developing, flipping. No different to guests on this show.

As I tell my clients, follow the smart money, especially how people invest their own money. Needless to say, avoid scammers. My friend Tarl Yarber created a hilarious Reel on the subject here: https://www.instagram.com/p/DBR3UFvtISC/

Back to investing in Canada! But where? 

I don’t usually weigh in on provincial politics outside of Ontario let alone follow them, but New Brunwick’s election caught my eye. With many in our community investing in New Brunswick for cash flow, the Conservatives were defeated badly replaced by a Liberal majority and the Liberals promised rent control in 2025, with a 3% cap on rent increases. There are reduced provincial sales taxes to incent developers to build rental housing and when I cornered ChatGPT to wear an housing economist’s hat and asked if it expects more or less rental housing to be developed by the private sector the conclusion was fewer rental housing units would be expected.

Makes you wonder why socialist governments implement policy that will slow rent increases in the short term but long-term rents rising faster for new tenants or those not covered by the rent cap.

The trend in Canada is not the friend of the real estate investor aside from the irresponsible levels of immigration.  I hope my friends who invested in New Brunswick planned for this scenario but unfortunately this is likely a net loss for residential real estate investors.  I’m no New Brunswick expert though but past guest Elizabeth Kelly and I’ve invited another to the show to give their expert insights from the streets!  Stay tuned!!

What markets are left that do not have rent control? Alberta, Newfoundland, Northwest Territories, Nunavut. Saskatchewan has relaxed rent control.

For fun, I asked ChatGPT, I’m thinking I should just let ChatGPT host this show but anyways, only Alberta would make the top 10 list for places to invest in North America in the 7th-9th ranking. 

But one still has to factor in mortgage financing and once you do, “in summary if you’re looking to grow your real estate portfolio quickly and efficiently, the U.S. (with DSCR loans) far surpasses any Canadian province, including Alberta, in terms of scalability and return on investment potential.”

And that’s quoting ChatGPT.  Ai knows where to best invest for the everyday Canadian investor, I hope you do.

Developing Healthcare & Senior Living Facilities w/ Dr. Wing Lim

Thank goodness however for non everyday investors like today’s guest Dr. Wing Lim a true renaissance man – a dedicated medical professional and serial entrepreneur who has built an impressive portfolio of healthcare facilities and senior living communities. For over 30 years, he has balanced a thriving family medicine practice with innovative real estate ventures.

Dr. Lim’s impact extends far beyond the medical field. He has spearheaded the creation of the state-of-the-art Synergy Wellness Center and the award-winning Esther Gardens senior residence, providing invaluable resources and care to thousands. Beyond his professional accomplishments, he is committed to empowering the next generation through his Physician Empowerment podcast. Link: https://www.physempowerment.ca/ 

Join us as we dive into Dr. Lim’s remarkable journey – from the challenges of running a medical practice to the triumphs of building a real estate and senior living empire. His story is a testament to the power of vision, perseverance, and a relentless drive to create positive change. Canada needs more investors like Dr Wing Lim and I hope this show inspires one of my 17 listeners.

To Listen:

HELP US OUT!

BEFORE YOU GO…

Before you go, if you’re interested in what kind of properties I am looking at in the landlord friendly states of the USA please go to iwin.sharesfr.com for what I consider the best investment for most Canadians, most of the time.

I’ve been investing in Ontario since 2005 and while it’s been a great, great run. I started out buying properties in the 100,000s and now it’s $800,000 to $1,000,000.  How much higher can it go? I don’t know

To me, the remaining potential for appreciation does not match the risk hence I’m advising my clients to look to where one can find rental properties that are affordable range of $150,000 to $350,000 US$, with rents that range from $1,400 to 2,600/month plus utilities.   As many Canadians recognize, these numbers will be positive cash flow and are night and day compared to anything locally. Plus the landlord has all of the rights, no rent control, and income is US dollars which are better than Canadian dollars.

If you don’t believe me, US dollars are better than Canadian dollars, go ask 100 non-Canadians which currency they prefer to be paid in.

So to regain control of your retirement planning.  Go to iwin.sharesfr.com and check out what great cash flow properties are available in the USA.  

The best part is, my US investments will be much more passive compared to by local investments as I’m hiring an asset manager called SHARE to hand hold me through the entire process.  As their client and shareholder, Share will source me quality income properties, help me with legal structure and taxes, they manage the property manager and insurance provider while passing down to me preferred rates so I save both time and money.  

Share will even tell me when to strategically refinance or sell.  SHARE can even support investors all over the country for proper diversification hence my plan is to own in Tennessee, Georgia, and Texas.  Share is like my joint venture partner but I only have to pay them fees while I keep 100% ownership and control.

If your goal in investing is to increase cash flow, I don’t know of a better strategy for most Canadians most of the time.  One last time that’s iwin.sharesfr.com to see what boring, cash flowing real estate investing can look like on your path towards financial peace.

This is how I’m going to make real estate investing great again for my family and hope you choose the same.  Till next time!

Sponsored by:

This episode is brought to you by me! We don’t have sponsors for this show. I only share with you services owned by my wife Cherry and me.  Real estate investing is a staple in my life and allowed me to build wealth and, more importantly, achieve financial peace about the future, knowing our retirement is taken care of and my kids will be able to afford a home when they grow up.  If you, too, are interested in my systematic strategy to implement the #1 investment strategy, the same one pretty much all my guests are doing themselves, then go visit www.infinitywealth.ca/events and register for our next event.

Till next time, just do it because I believe in you.

Erwin

W: erwinszeto.com
FB: https://www.facebook.com/erwin.szeto
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Disclaimer:

As a committed advocate for transparent and responsible real estate investment, I want to openly share my involvement with SHARE SFR (Single Family Rental) as an Advisor. I hold an equity position in this company and receive a referral commission for clients I introduce to their services. My endorsement of their business model – focusing on direct ownership of positive cash flow income properties – is consistent with my own personal investing since 2005, is based not only on a professional assessment but also on my personal experience and belief in their approach. Please note that while I stand behind my recommendations, it is crucial for each individual to conduct their own due diligence and consider their unique circumstances before making any investment decisions. As always, my priority is to provide you with honest, insightful, and practical real estate investment education.