For a real property investment, dollar weakening is good news.
Considering benefits of the conversion rates that are in favour,
investors from foreign countries are welcome to collect real property
investments in major US cities. So the question arises, who is
purchasing and what is the destination for investments?
Who is purchasing?
The
United States real property market has experienced the largest number
of investments from foreign investors like Canada in recent years.
Canada was the biggest investor in 2004, putting out over 4 billion
dollars for that year.
What is the destination for investments?
Nowadays, because of lowering interests in mortgages and dollar
weakening, foreign investors are acquiring property, residential and
commercial major in all US cities, even including the biggest ad
well-known.
Canadian benefiting into a system
Even the
northern border neighbours, Canadians, are looking for the benefits.
Though the Canadian dollar has unstable positions weaker than the US
positions for years, still many Canadians have their own vacation homes
in the United States, particularly in Arizona. Canadians are the biggest
investors, making the highest volume of US real property market.
Whether purchasing or selling, Canadians are delighting stronger buying
power, while the position of US dollar remains very low.
Some
Canadians, instead of purchasing, are following the example of investors
from foreign countries who sell the current estate of the United States
in preparation for purchasing at a rate even better in cases when the
dollar continues falling.
What is the time of its lasting?
Though mortgage
rates are an attractive draw, they definitely will not remain low the
rest of the time. Nevertheless, such foreclosed properties being low
priced like the financial investment will potentially be lucrative for
investors from foreign countries, while the dollar will still remain too
low, despite only the interest rates.
Investors from foreign
countries mostly are looking for long term profits, including an
increase in the US dollar as a motive to be purchased. Investing, while
the Canadian dollar is strong and the US dollar is losing its positions,
means that the property is available at a relatively small price.
Already some of the foreign countries are seeing a 35% reduction on the
basis of exchange rates that are in favor. Moreover, the goal is to
maintain the real estate until the US dollar has a strong position, and
only then conversion to the Canadian dollar would be high in profits.
With
the accessibility of real estate online, it is becoming easier than
ever for foreign investors to find suitable properties, even without
crossing an ocean. Some of the best bargains, such as seizures, can be
searched and bought even without arriving to the United States. In such a
way it makes investing in the United States real property a great
possibility for foreign investors, regardless of the place they reside,
particularly Canadians.
So consider all pros and cons in
purchasing real estate in the United States and define the aim of buying
property that will make a final step in investing money.