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Investment in Florida Real Estates is a smart choice for Canadians

Investment in Florida Real Estates is a smart choice for Canadians

With the recent decline of the Canadian dollar, the numbers of Canadians who are looking to buy Florida real estate are surely to decline.  The once in a lifetime opportunity of depressed US real estate prices in Florida and a strong Canadian dollar are now gone.  While a number of Canadians will continue to buy Florida real estate, despite the increased cost, the volume will be lower.

The Canadians that continue to buy in the US will likely continue because it is more of a lifestyle choice than an investment. Canadians were the number one buyer of Florida real estate in 2013-2014 with $2.2 billion in volume. Canadians were buying 31.6% of all international buyers, down from 35.1% share in 2010. Most Canadians that are buying Florida real estate buy homes worth less than $200,000.

The falling Canadian dollar didn’t impact home sales to Canadians in 2013/2014 but the recent drop in the Canadian dollar is a big shift from where the currency used to be. Florida buyers had better purchasing power with a stronger Canadian dollar – that is now gone.

While most Canadians buy Florida real estate with cash, US financing may start to open up for them as US banks feel better about the housing market and mortgage balance sheets. Many Canadians use their line of credit on their Canadian home to finance their Florida purchase.

The top areas where Canadians continue to buy are Tampa-St Petersburg, Naples, and Fort Lauderdale.  About 50% of Canadians are buying condos in Florida. While the boom days of Canadians lining up for Florida real estate are gone, many will continue to buy because they love the lifestyle and hate the cold Canadian winters.