Something I’m certainly starting to see a lot more of these days is folks trying to buy properties out of province... especially the east coast. 

Call me conservative in my investing mentality, but I’m not a huge fan. 

Don’t get me wrong, I totally understand the appeal... especially living in Toronto. The prices are a lot lower, the properties are bigger, and then of course the romanticism of beautiful locales. It’s hard not to fall in love with the idea. The truth is, it’s worked for a lot of people. 

There’s been a lot of folks in the last year or two that have sold their homes in Toronto and moved to the east coast, bought a larger place for next to nothing, and seem to be living happily ever after. 

There’s a reason for this, a particular set of circumstances.

First, they’re selling a home in Toronto. I’m not even sure if there’s any homes left in Toronto that are less than a million dollars (of course I know there are, I’m just trying to illustrate a point). So they sold a highly valuable property in a hot market, and got top dollar. There’s also a good chance that their work situation has changed, and they’re either retired, or telecommuting. Lastly, the prices of homes on the east coast look ridiculously low...at least if you’re coming from a market like Toronto. 

The thing is, for that person, that strategy works. 

What I see a lot of however is very different. Folks want to buy an investment property out of province. Here’s why I’m not a huge fan.

Unless you’re an experienced investor, owning an investment property out of province adds a level of risk that I would never suggest people take on. You can’t visit the property regularly, the laws can be somewhat different in other provinces, and totally different in other countries, and you’re not as familiar with the market. 

Here’s the thing, if the price is low... there’s a reason. 

Now don’t get me wrong, I’m not a fatalist. I’m not saying you can’t overcome these challenges, educate yourself, and make it a profitable investment. I’m just saying that it’s more challenging, and it’s easier to cut your teeth on a property much closer to home. 

All that being said, if you still want to buy something out of province, we’re talking about exactly that on today’s episode of the “Investment Property Income” podcast. 

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