Canadian Investments Due to a Weaker Dollar
For a real property investment, dollar weakening is good news
. Considering benefits of the conversion rates that are in favour, investors from foreign countries are welcome to collect real property investments in major US cities. So the question arises, who is purchasing and what is the destination for investments?
Who is purchasing?
The United States real property market has experienced the largest number of investments from foreign investors like Canada in recent years. Canada was the biggest investor in 2004, putting out over 4 billion dollars for that year.
What is the destination for investments? Nowadays, because of lowering interests in mortgages and dollar weakening, foreign investors are acquiring property, residential and commercial major in all US cities, even including the biggest ad well-known.
Canadian benefiting into a system
Even the northeern border neighbours, Canadians, are looking for the benefits. Though the Canadian dollar has unstable positions weaker than the US positions for years, still many Canadians have their own vacation homes in the United States, particularly in Arizona. Canadians are the biggest investors, making the highest volume of US real property market. Whether purchasing or selling, Canadians are delighting stronger buying power, while the position of US dollar remains very low.
Some Canadians, instead of purchasing, are following the example of investors from foreign countries who sell the current estate of the United States in preparation for purchasing at a rate even better in cases when the dollar continues falling.
What is the time of its lasting?
Though mortgage rates are an attractive draw, they definitely will not remain low the rest of the time. Nevertheless, such foreclosed properties being low priced like the financial investment will potentially be lucrative for investors from foreign countries, while the dollar will still remain too low, despite only the interest rates.
Investors from foreign countries mostly are looking for long term profits, including an increase in the US dollar as a motive to be purchased. Investing, while the Canadian dollar is strong and the US dollar is losing its positions, means that the property is available at a relatively small price. Already some of the foreign countries are seeing a 35% reduction on the basis of exchange rates that are in favor. Moreover, the goal is to maintain the real estate until the US dollar has a strong position, and only then conversion to the Canadian dollar would be high in profits.
With the accessibility of real estate online, it is becoming easier than ever for foreign investors to find suitable properties, even without crossing an ocean. Some of the best bargains, such as seizures, can be searched and bought even without arriving to the United States. In such a way it makes investing in the United States real property a great possibility for foreign investors, regardless of the place they reside, particularly Canadians.
So consider all pros and cons in purchasing real estate in the United States and define the aim of buying property that will make a final step in investing money.
Canadian Investments Due to a Weaker Dollar
By: Jeanette De Boer
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