The affordable properties and varied choices offered at foreclosure auctions in Florida have attracted a number of foreign investors and home buyers in the past few years. Recently though, one group of buyers has emerged as front-runners. According to state housing reports, Canadians account for a big percentage of foreign property purchasers in the region.
Local realtors have reported that foreigners, particularly those coming from cold weather countries, are not only lured by the low prices of properties under Miami foreclosure listings and from other distressed listings in various areas of Florida, but are also coming to the state to experience the sunny weather of the region. Realtors stated that most of these foreign buyers started out as tourists looking for some sun and beaches, but a big percentage of them ends up buying properties in the state.
In 2010, 8% of buyers of Florida foreclosures were accounted for by Canadians, making Canada the foreign country with the biggest representation in Florida's home buying market. Local realtors have revealed that one advantage that Canadian buyers have is that they have low interest rates in their country, which allow them to borrow against the equity of their homes back in Canada and use it to purchase a home in Florida.
Housing experts stated that foreclosure auctions are quite rare in Canada. The U.S. housing industry crisis did not spill over the Canadian housing market and the country is also protected by solid financial regulations. According to home market experts, securitized mortgages and subprime loans are not common in Canada, so foreclosures are also uncommon.
The strong Canadian housing market allowed most of them to take out cash from their home equity and use it to purchase foreclosed homes for sale. Local realtors revealed that Canadian homebuyers are divided almost equally among those who wish to stay and live in Florida permanently and those who use the properties as investments.
Florida realtors also reported that a number of properties bought from foreclosure auctions by Canadian buyers have been converted into rental dwellings, which provide them with cash resources. Others have purchased dwellings to serve as beachfront vacation homes where they can stay when the cold gets too much in their country.
