Canadian investors have been flocking to the California coastline and Arizona desert to buy prime American real estate at a bargain. The strong Canadian dollar, while inopportune for Canadian manufacturing firms, is giving Calgary investors built in downside protection when they buy American real estate. I explain that here:
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.
The vacuum, however, lies in the mortgage financing for Canadian investors. Mortgage companies require as much as 35% down payment for Calgary citizens buying a vacation home in America. In some areas (California, Arizona, Nevada, and Florida), that financing is about to be suspended. The leading bank suspended its loan programs, for Canadian investors, in those four states, as of April 1, 2008.
There's still money available for Calgary residents buying U.S homes- click here to find out where
A compendium of articles about how Canadian investors need mortgages from U.S. Banks:
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