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Canadians Are Buying California (and they want the Stanley Cup Back)

By
Commercial Real Estate Agent with Matthews Capital Markets NMLS 2415712

scCanadian 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

Comments(7)

Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

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.

Oct 21, 2007 08:38 AM
Randy L. Prothero
eXp Realty - Hollister, MO
Missouri REALTOR, (808) 384-5645
I have not seen any Canadian clients here in Hawaii.  I am sure if the dollar exchange continues to be favorable they will find their way to paradise.
Oct 21, 2007 09:32 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County
We continue to have quite a few Canadians moving to Florida. Why not the U.S. north-easterners do?
Oct 21, 2007 12:29 PM
Danielle V. Lewis
DDR Realty - Newburgh, NY
DDR Realty

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.

Oct 21, 2007 11:50 PM
My Essistant
MyEssistant - Santa Monica, CA

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!!!!!!

Oct 22, 2007 02:44 PM
Carrie Maniaci
LUXE HOME Real Estate - Laguna Beach, CA
Canadians seem to be buying Real Estate straight down the West coast, from Seattle down to San Diego. I was in Vancouver, B.C. and the the border crossing line to get back into the US was 3 hours long. This was never heard of before. Time to start marketing our friends to the North since their dollar is going strong in our market.
Oct 22, 2007 03:16 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I'm working with a fellow from Vancouver who will be buying here in North County.

Jeff

Nov 09, 2007 11:09 AM