Investing in Florida: Why it is appealing to Canadians

Investing in Florida: Why it is appealing to Canadians

Posted on: July 3, 2012

FACT: Canadians make up 27 per cent of purchasers buying foreclosed property in the United States.

More and more Canadians are seeking the financial benefits to owning an investment property in the United States. Between short sales, foreclosures and the current state of property values, there has never been a better time to invest in the Florida real estate market.

Here are the top five reasons for Canadians to invest in Florida real estate:

1. Physical Locality
Flight times to the Florida area are less than two hours, making trips to see your investment property short and affordable.

2. Exchange Rate at Par
Since the Canadian Dollar has been close to or at par with the US Dollar, your investment will reap the benefits when the US Dollar gets stronger. You will experience a higher conversion rate when you bring your investment earnings back into Canada.

3. Return on Investment
Currently, investments in the Florida real estate market are experiencing a return on investment of eight to nine per cent annually. In Toronto, the returns are considerably lower.

4. Active Tourism Industry
Florida has very active industries including, tourism, , international trade, construction, agriculture and aerospace providing hundreds of thousands of jobs for local residents These are the kind of strong economic fundamentals that MSR Americas looks for when analyzing possible investment opportunities.

5. Property Values
According to a report from the foreclosure data firm RealtyTrac, short sales jumped 33 per cent from January 2011 to January 2012. In 12 states – including California, Arizona, Colorado, Florida, New York and New Jersey – there were more short sales recorded during the month of January than sales of foreclosured properties.

In Florida specifically, one in every 340 homes listed is a foreclosure. Low property values present excellent opportunities for potential investors.