Canadian investors are looking at California real estate, as a good long-term investment, because of the devaluation of the US dollar. Simply put, the falling California real estate market, combined with a weakened and leveraged US economy, is giving Canadian investors a double whammy of a chance to own prime, California properties, cheap. This series will attempt to educate Canadians, looking to buy California properties.
How does the exchange rate work?
In January of 2007, a Canadian investor, buying a $300,000 (US) property in Long Beach, CA, , would have to pay $352,600 (Canadian). That was based on an exchange rate of $1.17553 Canadian to $1.00000 (US). Today, the exchange rate has dropped to $.98188 Canadian for one US dollar. That means that the same property in Long Beach, would costs $294,300.
But wait, there's more! CONTINUE
Brian,
We have quite a few Canadian clients ....we sold 5 condos...3 rentals to them in one are in the 100's all cash and we just went into escrow with a nice deal for a single family home for 617,000,...small mortgage on this one. My partner is from Canada and he agrees that with the devaluation of the dollar..he is calling more of his relatives right now and we also advertise in Canada for this very reason...I'm lucky to have a Canadian connection.
A local newspaper here tried to spin the perspective on the falling American dollar, saying Woodbury Commons' sales skyrocketed...I'm still not happy with our dollar's place, despite that.
Canucks have always been fans of California and Florida. Easy, cheap and quick flights from almost any city in Canada - and yet the weather differences (particularly in January) are extreme!
(That might be why HI does not have such a pervasive Canadian contingency ... the flights ... particularly from the Toronto area ... where the majority of Canadians live - can be VERY long.).
As a sun-loving', winter-hatin' Canuck ... I am one of those that decided to call California home ... and now that our dollar has caught up ... I know for a fact that there are a number of others that will follow suit (my parents just bought a retirement home in FLA last week! They definitely did not think that would have been possible 2, 5 or 10 years ago!).
Oh - and YEAH - we want the Cup back!!!!!!
I'm working with a fellow from Vancouver who will be buying here in North County.
Jeff