Seems that Canadians are less interested in saving via their RRSPs and TFSAs and are more interested in scooping up real estate in the United States.
For the fourth year in a row, Canadians account for 23% of foreigners buying homes in the U.S. At the end of March 2011, foreigners scooped up $82 billion worth of real estate, which is up from $66 billion the year before.
A recent survey* outlines the reasons why Canadians are so quick to buy homes in the U.S. and what prompts their choices. Reasons why include:
- – U.S. homes are generally less expensive
- – U.S. homes are a secure investment
- – U.S. homes offer rental opportunities and long-term appreciation
- – The Canadian dollar is quite strong
Canadians seek warmer climates during winter months so it seems that Canadian home purchases are mostly occuring in Arizona and Florida. In 2010, Canadians bought 8% of the homes sold in Florida; since 2009, over 150 homes worth $1 million or more have been sold to Canadians in Maricopa County, Arizona.
It seems, however, that Canadian investors are beginning to delve deeper in the U.S., as they are currently scooping up homes in Washington State, Montana, Las Vegas, Texas, Georgia, North and South Carolina, and Vermont.
Another survey from the Bank of Montreal reveals that 20% of Canadians are considering buying a home in the U.S., although Canadians are being a little more cautious before investing.
Due to the improvement in the U.S. housing market, Canadians are becoming even more interested than ever in investing in homes in the U.S.
*National Association of Realtors