One of the primary challenges in the Canadian real estate market is that it is nearly impossible to find positively cash-flowing properties. This is due to the high purchase prices and the fact that market rents cannot support those prices. As a result, many investors struggle to find properties that generate positive cash flow, which can limit their ability to grow their investment portfolio.
Furthermore, Canadian government policies keep rents artificially low while housing prices continue to climb. Government-mandated rent controls keep rents artificially low, which limits the rental income that investors can generate from their properties. Meanwhile, historically low-interest rates and population growth keep pushing real estate prices higher, making it more difficult for investors to enter the market.
On the other hand, investing in real estate in Florida offers a more balanced real estate market with less government intervention. The state of Florida has no state income tax, which makes it an attractive location for businesses and individuals to live and/or do business in. This, coupled with a growing population and a healthy economy, creates a strong demand for real estate, which can lead to higher rental income and appreciation potential.
Another advantage of investing in real estate in Florida is that the market is more balanced. With a healthier ratio of homes for sale versus population growth compared to Canada, Florida’s property market is more predictable where properties have a lot more room to appreciate in value over time. Additionally, Florida’s warm climate and beautiful beaches make it a popular tourist destination, which can lead to higher rental income potential.
