Canadians Cashing in on Low US Real Estate Costs

One of the most notable signs of the ongoing recession in the US is the fact that the American dollar is now on par with other currencies – like the Canadian dollar. Another sign of the current economic woes is the lingering malaise in the real estate sector, though there are signs of improvement. Canadians are taking advantage of both of these facts, and are buying up real estate across the border in the US. What are the benefits offered here?

One of the most significant benefits for Canadians entering the US real estate market is the fact that they do not have any income tax concerns, so long as the home is used for personal reasons. For instance, if a Canadian family wanted a second home in the US, or a vacation home that would remain empty when the family wasn’t using it, then there are no issues. Once income is generated from the home (through rent or use as an investment), that changes.

Another benefit to Canadian homebuyers eying the American market is the fact that they can take advantage of some of the lowest prices in history, at a time when the Canadian loonie is at its highest point in three years, compared to the American dollar. Simply put, there has not been a better time to own a home across the border in a very long time. Of course, Canadians interested in making this move should ensure that they use the services of an agent who knows their way around across-the-border real estate transactions.

 

Demand For Single Family Rental Are High

 

Although real estate prices have fallen dramatically for the past 2 or 3 years, rents are rising. High demands for single family rentals are on the rise due to the volume of foreclosures and short sales. No matter what the reason for these families losing their homes they still need places to live. Consequently the demand for single family rentals is high.

For a lot of these families leaving their homes, they are not necessary wanting to leave their neighborhoods. They are looking to keep the kids in the same schools and keep their friends. For these new renters the rents are less than their old mortgage payments, they are relieved from maintenance work and they are happier to be out from under the massive payments.

In the past’s multi-family units, i.e. apartments, duplexes were easy to rent, but with so many more renters looking to live in SFR’s this is starting to change. We are starting to see the demand “good” single family property rentals in nice neighborhoods go up.

Investors will benefit from this information because they understand prices have been dropping on properties and the demand for good rentals has been going up. Investors are confident that they can rent for a good rate and have an easier sale when they are ready to sell after the prices rise.

If you are thinking of buying or selling a home, condo or investment property call me Mark Spector 310-430-0633