Arbitrage Canada

[Gaetan Boren]

Thegreat white north offers a wide range of opportunities for financial freedom. In fact, you can earn easy money by renting out a property without actually owning it. Rental Arbitrage enables this setup. It is a smart way to earn passive income with only minimal investment!

Yes, but rules vary per city in Canada. Quebec requires registration of short-term rentals of fewer than 31 days to get a license. Quebec was also the first Canadian province to regulate short-term rentals.

For convincing the landlord, rule number one is always talking about the upsides. If you can rent the property on Airbnb, so can the landlord himself. You need to make a deal with the landlord that is beneficial to them. So they lease the property to you instead of renting it by themselves.

In conclusion, you need to take care of the property like your own. Make sure to timely pay the monthly lease and keep the situation beneficial for both parties. You can also use a free rental arbitrage email template and propose your ideas to landlords!

Ideally, you should aim to lease a place that is semi-furnished. Furnishing a place from scratch can add anywhere from C$3,000 to C$5,000 to your initial capital. Not choosing the right property can make rental arbitrage not so low cost, so choose wisely.

If the place is semi-furnished, then your best bet is to shop cheap for the rest of the stuff. You can go and find cheap supplies from places like Home Depot and IKEA. Sometimes even Walmart can have a hidden gem if you look closely.

Maintaining a professional relationship with a real estate lawyer can be very helpful in the Airbnb business. Airbnb regulations keep updating and you would need some legal guidance on the way to adjust your business accordingly.

Some Americans fear higher taxes so much they are willing to move. The capital gains tax rate might go up. The step-up basis might go away. And the top marginal income tax rate might go up too. Therefore, may I present the best life hack for Americans: taking advantage of Canada!

Not only do some Americans face potentially higher taxes, but all Americans are also feeling the brunt of higher inflation. Combatting inflation by moving to Canada is a serious solution many middle-class Americans should consider.

My favorite money-making arbitrage opportunity for the next couple of decades is investing in non-coastal city real estate due to lower valuations and higher net rental yields. Technology is accelerating the flow of capital and people toward attractive real estate opportunities.

However, taking advantage of Canada could be an even greater multi-decade investment opportunity, especially if you have children. Despite the frigid weather for four months a year, Canadians have a lot going for them.

A 25-year-old friend in my SF softball league is from Vancouver, Canada. He went to the University of British Columbia, a top-five university where annual tuition is only $5,399 in the computer science department.

Yes, but let me make my money first. After five years in San Francisco making double the money, I'll then move to Seattle with my girlfriend where my firm is headquartered. Seattle pay is similar to San Francisco pay, despite the cost of living being 30% cheaper. Further, Vancouver is only a 3.1 hour drive away.

If Canadians wish to participate legally in our labor market and also buy and sell U.S. stocks and property, why not take advantage of the opportunity? After all, America is the greatest country in the world.

Canadians are consistently a top-3 largest foreign buyer of U.S. real estate. Without foreign buyers, American real estate would be more affordable. Therefore, we should return the favor and buy up Canadian real estate.

Following my softball friend's logic, Americans should take advantage of Canada's government safety net and immigrate to Canada after we've amassed our fortunes as well. This is the best life hack to make life easier.

One of the biggest problems we face in America is the runaway cost of healthcare. Medical-related expenses are our nation's #1 cause of bankruptcy. It would, therefore, seem logical that those who decide to retire early and are ineligible for Medicare should migrate to Canada and get their healthcare paid for.

For example, my family of four will pay about $28,000 a year for healthcare premiums plus co-pays and co-insurance in 2023. Does this sound reasonable to you for a healthy family who never sees a physician?

If my family moved to Canada, we'd be eliminating most of our present healthcare costs and could use the savings towards living a better lifestyle. We wouldn't have to purposefully reduce our income to get healthcare subsidies either. What a shame to stop writing on Financial Samurai, something I love to do, just for the sake of affordable healthcare.

The only problem is that wait times at hospitals and other health providers can be very long. Therefore, you may still want to pay for private health insurance if you live in Canada just in case. I plan to for a reasonable $3,000 a year.

Paying for college by sending them to a Canadian college is also so much cheaper. You will experience less stress and anxiety having to work and save so much for college tuition. A four-year private university costs $80,000 a year in America nowadays!

In addition to recommending all adult Americans seeking financial independence migrate to Canada, there's also a way for our children to take advantage of Canada too. The best life hack is when you can help your children as well.

One of the reasons why I became a high school tennis coach was because I wanted to learn how to interact with teenage boys before my own boy becomes a teenager in 2031. It may sound crazy to prepare so far in advance to be a better father, but I figure why not try? Planning is free to do.

Occidental College is a good school, but I thought he was going to attend a top-10-ranked school instead. He was super smart, very wealthy, and was frequently late to practice due to constant after-school tutoring.

He mentioned a classmate was attending McGill University in Canada and I was immediately impressed. I remember having a financial analyst classmate at Goldman Sachs who had also attended McGill University.

She was extremely kind and smart. Further, she was the only one in my 1999 financial analyst class who survived the post-dotbomb layoffs and made Managing Director 10 years later. MD at 33 is quite a feat!

Never one to surrender so easily, I looked at the data closely and the 46.3% acceptance rate was from 2016. As someone who is proficient with search engines, I knew Google often had old data in its featured snippets.

A 41.7% acceptance rate for arguably the best university in Canada is comical by US standards for the top school. The high acceptance rate shows that Canadians really are much more accepting of everybody than we are in America.

In America, where meritocracy is under attack, maybe making it easier for everybody to get into great schools and land well-paying jobs isn't so bad after all. Think about how much less stress parents and children will feel for decades.

And if your kids are Asian, then they've really got a Mt. Everest to climb. Is there no wonder why so many Asian families run small businesses? They know their odds are stacked against them, so they bypass the gatekeepers.

What is the point of trying to grind so hard in middle school and high school to try and get into a top American university with a 10% or lower acceptance rate? Instead, you can be an average student and still get into a top-five Canadian university!

The reputations of the top Canadian universities are higher than their respective acceptance rates indicate. And some consider the top Canadian universities to have a similar amount of prestige to the top American universities.

During my three years as a high school tennis coach, I saw and overheard my students talk incessantly about their studies. They discussed how they needed to go to expensive SAT tutoring after practice. They complained about having to take more practice AP exams and so forth.

Several even showed up late to important matches because they required extra time on their exams. They then wanted to talk to their teachers after class. I could feel the pressure they were under to try and do it all.

Instead of spending $52,659 in annual tuition going to Harvard only to end up with the same type of job as everyone else, why not spend 1/9th the annual tuition at the University of British Columbia and work at a US-based firm for more money instead? You might have to live in Canada for a year or two to be able to pay Canadian tuition, but it'll be worth it!

According to Macrotrends, Canada has only 1.97 crimes per 100,000 people compared to 6.52 crimes per 100,000 people in America. When you've got a larger social safety net and less poverty, there tends to be less crime.

Take a look at the crime by country rate chart below. Maybe it's not a coincidence Sam Bankman-Fried set up FTX in the Bahamas. Its crime rate is the second highest in the world! With higher crime comes more government corruption and the ability to bribe your way to success.

I encourage all American high school students to apply to Canadian universities. You'll get a great education and save on costs. Then once you've accumulated enough capital in America to retire, you can then return to Canada to live off the government's good graces.

At the end of the day, Canada is great for early retirees, traditional retirees, people seeking financial independence, entrepreneurs, and children. Canadians are more laid back as its citizens are more focused on work-life balance.

Anybody currently or planning on taking advantage of Canada to live a better life? What are some of the downsides to taking advantage of Canada besides long wait times for healthcare and cold weather? Should American work and education culture trend more towards Canadian work and education culture to there's less stress and anxiety?

Real estate is a core asset class that has proven to build long-term wealth for Americans. Real estate is a tangible asset that provides utility and a steady stream of income if you own rental properties.

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