Posted on: November 8, 2014
In a recent report by the National Post, Canadians are far and away the number one purchaser of Florida real estate, leading the international pack with 31.6% of purchased residential real estate and more than quadruple the next closest global buyer (the United Kingdom).
Condo Buyers and Value Hunters
Canadians are recognized as savvy real estate investors. 2014 represents the seventh consecutive year that Canada has been the world’s number one investor in Florida real estate. 50% of buyers paid less than $200,000 for their property and only 16% paid more than $400,000, with most coming in under the $100,000 mark. 89% of buyers paid in cash, too, which demonstrates the great value and that Canadian buyers are serious about their long-term investments.
Unsurprisingly, 49% of Canadians preferred condominiums to any other form of housing, including single detached homes. While the single detached home is the most coveted form of housing in Canada, in Florida Canadians seek compact condos that demonstrate great value and offer a range of investment opportunities.
The majority of buyers—about 53%—intend to use their condos as vacation property, while only another 14% will rent it out for investment purposes. 17% will blend personal vacationing with renting.
Low Prices, Sound Market, and Exceptional Location
One buyer, a 74-year-old retiree, reported buying a condo two years ago while vacationing in Florida and estimates that its value has already risen by about USD$39,000.
Florida, more than many American states, continues to be a leader in the recovery of the American housing market for a number of key reasons:
- Low Prices: The exceptional quality of homes offered at a tremendous value with those values steadily, incrementally gaining value is difficult to resist for investors.
- Scarcity: Canadian investors understand that the good times of quality condos in extremely attractive locales at historically low prices cannot last and are acting now. And why not? Can you really have too many safe, high yield investments?
- Demand: Florida real estate is a safe investment as the state experiences a demographic shift and population boom. Retiring Boomers from throughout the United States, particularly the northern states, are deciding to spend their retirement in Florida. Demand for quality housing, particularly smaller, down-sized homes like condos, that reflect the Boomers’ new lifestyle choices, are extremely attractive.
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