Foreigner buyers now consider the U.S. more affordable due to the historical lows of the dollar against their currency. Below is an example of a sale that occurred on Marco Island in April 2003 and sold again in May 2007. This example details how a Canadian buyer would have lost $66,000 in gains due to the devaluation of the US$ against the Canadian$; whereas, the U.S. buyer gains over $340,000 during the 4 year period.
In April 2003, $1,255,000 US would convert to $1,827,154 Canadian. In May 2007, this same $1,255,000 US would convert to $1,380,851 Canadian. Therefore, a Canadian buyer today would only need $1,380,851 Canadian to purchase a $1,255,000 US home; whereas, 4 years ago, this same buyer would have needed $1,827,154 in Canadian$ to purchase a $1,255,000 US home.
Now consider the fact that a spacious 3400 square foot home, built in 2000, with partial bay views, sold for $1,600,000 in May 2007. In May 2007, the sale at $1,600,000 US converted to $1,760,448 Canadian. This same home was sold in April 2003 for $1,255,000 US which converted to $1,827,154 Canadian at that time. Therefore, the U.S. Seller had a gain of over $340,000 US. A Canadian seller would have lost over $66,000 Canadian when they converted their money between US$ in 2004 for the purchase and back to Canadian$ in 2007 for the sale. Another way to look at the devaluation is that the Canadian Buyer can now buy a luxury home in Florida for less money today than he could in 2003 even with the home appreciation.
Enjoy the benefits of the devalued dollar and use the online tools for currency conversion. The online tools are a great way to understand the conversion rates when you are dealing with our foreign counterparts.
Good luck!
Natalie Kirstein, MBA
Premier Properties of SW FL, Inc.
Phone: 239-642-2222
E-mail: NatalieK@premiermail.net
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