Housing Crisis everywhere you look? See What $350K Gets You Outside Canada

Frustrated by Canada’s Real Estate Prices?

Real estate investors and home buyers across the country have been feeling the squeeze for years. But the good news? There are better, smarter options beyond the border.

With a budget of just CAD $350,000, it’s absolutely possible to secure a high-quality overseas property. Even better? You can earn a net ROI of 5–8% on a well-chosen condo investment, without stretching your finances thin.

By contrast, if you have anywhere from CAD $200,000 to $1,000,000 and willing to invest in the Canadian real estate market, you may be in a difficult position. How do you earn positive income on a monthly basis and invest wisely to see your capital appreciation in the long term. This is the golden formula that most investors are seeking – but it seems to have faded as a Canadian real estate dream.

Remember the golden days of Canadian real estate?

When buying a home or condo, flipping it, and pocketing a tidy profit was almost second nature. When you could snag a condo with a mortgage and, after covering all your expenses, still walk away with positive cash flow from your rental income. Or when renting out your own home short-term didn’t require jumping through municipal hoops or worrying about capital gains taxes or CRA penalties eating into your profits. Those were simpler times—profitable, less regulated, and full of opportunity.

It seems like, as time passes on, the Canadian government and local regulators find new ways to inhibit home buyers and real estate investor’s opportunities to earn income and potential asset appreciation. Even with a new Minister in town and a new affordable housing plan in the making, the landscape is still uncertain.

This brings us to the topic of housing affordability. How affordable is it to invest overseas?

Having options becomes especially important when working within a stricter budget. Even investors with higher budgets should think carefully—just because one can afford to invest in a particular market doesn’t mean it’s the best choice if the potential return on investment is limited.

In Toronto or Vancouver, even with recent price declines, finding a property—such as a new condo—around the CAD $450,000 mark is virtually unheard of within the city. Most new condos start at $550,000 or more, not including additional costs like condo fees. The size of such condos are considered ‘micro-studios’ in the European market – but this term would not sit well with buyers in the Canadian market since that may be all they can afford. If an investor is seeking an actual house or land in the major cities, then they would need to be budgeting at least $1.5m and higher, unless they drive an hour out and perhaps can find figures closer to $1.1m.

Interestingly, although neither Toronto nor Vancouver ranks among the top 10 most expensive housing markets globally, both remain highly unaffordable for the average Canadian. With after-tax annual incomes averaging $79,500 in British Columbia and $62,050 in Toronto, homeownership is out of reach for much of the population.

We know the problem, but what is the solution?

It’s simpler than you think. You need to broaden your horizons beyond your own city or province or even country.

You need to broaden your horizons beyond your own city or province or even country. A useful analogy is that of a day trader investing in the local stock market (e.g., the TSX), only to later discover the existence of larger and more lucrative equity markets such as the NASDAQ or NYSE. The same principle applies to real estate investments, exploring other markets can open the door to greater opportunities and stronger returns.

Take Panama City for example, where a large expat community has and is continuously relocating, you can own a brand new condo with CAD$250,000 to CAD$350,000. These condos have the same facilities and amenities as any new condo in North America, and perhaps even more. Full time reception and security, gym, outdoor pool (since it’s always sunny in Panama), sauna facilities, event room, and indoor parking.

Most of the new units in Panama either have a view of the bay, the canal, the forest, or the old city – which is not something we can claim for condos being sold at double these prices in Vancouver or Toronto. With an extended budget of CAD$450,000, investors can buy a brand-new unit overlooking the ocean in Costa Del Este with a rooftop pool and 5-star amenities.

For those with larger budgets, $1.3 million can buy a brand-new, spacious villa just 10 minutes from the city center, situated on a plot of approximately 400 square meters. This is a far cry from what can be purchased in Toronto or Vancouver for a single detached home, which of course wouldn’t be new.

Meanwhile, investors with budgets ranging from $250,000 to $1,000,000 will find their purchasing power stretched 2.5 to 3 times further in Panama City.

What About Resale? Will Your Property Hold Its Value if You invest overseas?

In Q1 2025, Downtown Vancouver two-bedroom condos had an average “Days on the Market” or DOM of 14.67 days, down from 38.91 days in 2024. North Vancouver’s average DOM for all property types was 11 days in April 2025, up from 8 days in 2024. This is a much more positive indicator than the Toronto market which is currently at 33 “Days on the Market” for residential condos as of April 2025. In Panama the overall average days on the market for all types of residential properties is at 77 days, as the market has been softer in the past year for resale condos. Reselling in any of these markets does require you to budget for the real estate commissions which average roughly 5% to cover your agent and the buyer’s agent’s commissions. This is true for Panama City, Toronto and Vancouver. The title transfer process is quite streamlined, similar to Toronto and Vancouver, a transaction can take 1.5-2 months to close.

When it comes to the rental market, how likely are you to find renters? 

As an investor seeking real estate opportunities, making sure that there is strong demand for the units being purchased to provide A) passive income or B) service debt to carry the property for future value appreciation are very important factors.

The rental market has been quite strong both in Vancouver and Toronto. Even at its highest vacancy rate. Toronto’s condo rental unit vacancies are reported at 3.4% as of Q4 2024. Condo rental rates have softened in Toronto recently but have traditionally remained very strong. Due to the expected population growth in Toronto, rental rates are expected to rise again. Although rental vacancy rates increased to 14.4% in Vancouver, the rental rates have remained strong and even increased in 2024. The outlook for the Vancouver rental market is softer than Toronto’s, but in general both markets have historically experienced a stable and constant demand for rental units.

Over the past 5 years, rental prices have increased by 40% in Panama City exhibiting a robust and fast-growing market for tourists and expats.

One of the key concerns for investors and homebuyers is the return on investment. How does buying property internationally compare to purchasing at home?

When investors purchase real estate, unless it’s land or a tear down, they seek a return on investment by renting out the property or unit. Although gross ROI can be appealing, the higher maintenance and carrying costs can eliminate almost all of the returns the investor expects. When calculating the true ROI, investors should consider annual property tax, monthly interest payments for any mortgages, monthly condo and maintenance fees, and any property management fees, if applicable.  In Vancouver’s downtown, the gross ROI ranges between 3.5% and 4.0%, while in Toronto’s downtown core, it is approximately 4.5%.

For example, if you purchase a new condo unit in Toronto for CAD $650,000 and secure a long-term tenant, here’s how the numbers might break down:

• • Annual property tax: $4,901.57

• • Annual interest on mortgage interest (on a $300,000 mortgage): $12,207.27
  (Note: In the early years, interest makes up the majority of monthly payments.)

• • Annual condo fees (estimated): $6,000

After deducting these expenses, your estimated net rental income would be $6,141.16 per year, or approximately $511.76 per month. This means in reality it’s less than a 1% ROI for this investment in downtown Toronto. In case you want to invest $650,000 cash and not use any external financing, your net ROI would be in the best-case scenario 2.8%. In case you feel that our calculations are skewed based on the mortgage interest deductions, then you should note that we did not consider the land transfer tax in our equation when acquiring the $650,000 condo which would make the actual cost of this new condo an additional $18,950 or $10,475 if the first time home buyer’s rebate is applied (keep in mind that Toronto municipal land transfer tax is on top of the provincial land transfer tax in Ontario).

In Panama City, a comparable condo can be purchased for nearly half the price of one in Toronto. Key financial advantages include:

• • No initial land transfer tax

• • Lower mortgage requirements due to more affordable property prices

• • Lower maintenance fees, averaging around $300 per month

• • Annual property taxes range from 0.5% to 1.2%

             • In some areas, like the historic Casco Viejo district, new developments can qualify for a 3-year property tax exemption

   

The net ROI would range from 5 to 7% depending on the property management fee and if you are renting out long term vs short term. Besides the higher ROI, more affordable units, more amenities and the same construction quality, the developers have in-house property management staff to handle everything on behalf of the owner as a ‘hands-off’ solution.

As an example of alternative ROI opportunities in Panama real estate, one pre-construction project in Playa Bonita—developed by the Westin Group—is building a 5-star, hotel-serviced residential tower right next to the existing Westin beach resort.

They’re offering investors 4% annual interest on their purchase price until the project is completed. That’s higher than most GICs currently available in the Canadian market. Plus, this Westin development is expected to be one of the most desirable properties in the area, thanks to its prime location—just a 10–15 minute drive from the core of Panama City and right by the nearest swimmable beach.

They have an in-house property management team, and the units can be handed over furnished. This is just one example of how a pre-construction project, backed by a reputed brand such as Westin group, is offering a higher ROI than most condo project investments in the Canadian market. When these units are ready in approx. 3 years, the ROI for the rental income will be significantly higher.

Some developers even guarantee a certain ROI % for investors when purchasing directly from their projects – allowing the investor to enjoy a minimum guaranteed net ROI, while the developer’s property management team handles the property for them.

It is also important to consider the Long-Term Capital appreciation.

This is many investors’ favorite aspect of real estate: long-term value appreciation. Real estate is often seen as a kind of piggy bank—an asset that builds value over time. The idea is that the money invested and paid into the property will pay off when it’s eventually sold.

The appreciation of residential properties in the major metropolitan cities of Canada has been very stagnant, and especially condos. In Toronto, there has been a drop in condo and single detached home prices in the past year and continuing in 2025. The table below shows the major market trends in the two largest real estate markets in Canada.

Approx 35% of all residential investments in Panama are done in cash – predominantly by foreign buyers (meaning there is no debt tied to the acquisition of the property). Approx 30% of all residential homes in Panama City were constructed in the past 10 years, making it a very new market. During the Pandemic the real estate prices were hit hard and the market was in a slump, similar to many other markets. Since 2022 Panama City has seen a steady growth in its real estate prices, depending on the specific neighborhood and location, although quite subtle. Many foreign investors seek the ROI and wealth preservation in USD through the investments they make in Panamanian real estate.

Lastly, let’s not forget about the weather conditions for high-demand short-term rentals.

If you are considering short-term rental opportunities for your real estate investments, some of the most important factors are:

•      •  Frequency and size of events (conferences, trade shows, concerts, sports events)

•      •  Volume of tourists

•      •  Weather (nicer weather always attracts more tourists and short-term visitors)

•      •   Availability and supply of hotels and commercial short-term accommodations

Vancouver has been traditionally a strong short-term rental market as it checks many of the boxes above. Toronto has its dips between December to April due to the cold weather. Many house owners who participate in the short-term rental market in Toronto see a significant drop in income during this period. Condo rentals for Airbnb are stronger and more robust but also limited in terms of the condo by-laws for the specific building where the investor has purchased their unit.

In Panama, temperatures stay consistently warm year-round, ranging between 28°C and 32°C. The climate typically includes 1–2 hours of rain daily, followed by plenty of sunshine. The country offers beautiful beaches, a tropical lifestyle, and a tourism industry that began experiencing double-digit growth in 2024. The majority of visitors are holiday tourists and expats who come visit for holiday, to invest, for immigration purposes or a combination of these activities.

Panama is growing in terms of influx of visitors every year, with the Asian market picking up steam. The government has also implemented visa-free access for more nationalities to visit Panama easily since October of 2024. Throughout the year the short- and long-term rental market in Panama has robust demand. Americans, Europeans and wealthy Latinos are the top 3 visitors to this country.

So, what’s the takeaway?

Canadian real estate investors are facing an increasingly restrictive and saturated market. With rising taxes, rental licensing hurdles, and shrinking ROI, the old formulas simply don’t work anymore. But that doesn’t mean opportunity is gone—it just means it's moved.

What Panama and other countries offer is not a speculative trend, but a practical shift in how and where smart investors are reallocating capital. From significantly higher net ROI and freehold ownership to full-service management, USD-denominated income, and a pro-investor legal framework, Panama has quietly positioned itself as a viable alternative for Canadians looking to regain control over their investments.

By expanding your real estate portfolio beyond Canada, you’re not just chasing returns—you’re future-proofing your financial freedom.

Book a 1-on-1 Strategy Consultation with Us!

If you’d like to explore alternatives and receive guidance from our cross-border investment team, we can help you create a tailored real estate plan based on your budget and goals. Simply  book a consultation or fill out our form and we will gladly guide you.