Tuesday, September 18, 2012

Canadians buying up Florida Real Estate

Northern flight: Canadians gobbling up Southwest Florida real estate
From July 2011 to June 2012, foreigners accounted for 19 percent of the home sales volume in Florida, led by Canadians, according to an industry report by Florida Realtors, a statewide trade group. In that year, sales to foreigners in the state reached an estimated $10.7 billion — out of a total of $58 billion. Canadians accounted for 31 percent of those foreign purchases, putting them in first place among all nationalities.
In the Cape Coral-Fort Myers market, Canadians ranked as the top country for foreign home buyers in the year ending June 30, with a 56 percent share, according to the National Association of Realtors' 2012 Profile of International Home Buying Activity. That was followed by Germany with 17 percent, then the United Kingdom and Honduras, each with 6 percent.
I wonder what percent of these buyers are taking out equity back in Canada to fund these purchases?
Glen Bigness, a Realtor with Premiere Plus Realty Co., said in an email that he sees a great number of Canadians visiting his websites.

He's in regular contact with lenders who provide loans to foreign nationals.

"Most tell me money is tight, and qualification is very narrow and stringent for them, so most deals seem to still be cash at closing," Bigness said.

His company offers a "buy and fly" program to Canadians. Buyers who spend at least $200,000 get up to $500 at closing to pay for their flight to Southwest Florida.
If you can't afford a plane ticket, how can you afford to be a long distance owner?

When these foreign markets also adjust, U.S. housing is going to find another bottom.

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