Canadian Investing Opportunity in the United States

Written by Marc on October 1st, 2007

As I write this article, the Canadian dollar is worth more than the American dollar.  In fact, it is at its’ highest level since the late 1970s. 

What does this mean for us as Canadians?

One word:  Opportunity.

Consider that the American housing market is in turmoil and people are being forced to foreclose on their houses because they can no longer afford them.  This housing crunch has put downward pressure on housing prices, making it a great buying opportunity.

For example, looking at a real estate auction site based out of the U.S., for under $100,000 US I can buy a four unit property that brings in just under $20,000 US per year.  Looking up here in my community of Saskatoon, the best I can do for $100,000 CDN I can buy a house that is in a poor neighborhood that rents for about $7,200 CDN per year.  The small apartment available in the US definitely offers a better return on investment.

The best part of it is our dollar is worth more than theirs.  We can buy investments for less money than it would cost up here, which will also increase our return on investment.

I know some of you will say that we should keep our money in our country.  To be honest, look how many foreign investors invest in Canada – there are a lot.  Besides, the money you make from your income property, will come back here and be taxed here, so you will be returning the money back to our country.

Last but not least, it also protects your investment portfolio from currency markets.  Depending on which economy is doing better (either Canada or the United States) you can benefit from the prosperity on either side of the border.  It also gives you some leverage – if one currency is stronger than the other, you can use it across the border to increase your return on investment by lowering your initial investment.

So, take a look across the border and unleash the buying power of your Canadian dollar!

Read more articles on Business Opportunities and Real Estate Investing.

7 Responses to “Canadian Investing Opportunity in the United States”

  1. Your article is timely and very well written!

    I believe now is the time for Canadians to take advantage of the opportunity of investing in US Real Estate, especially since the loonie has surged.

    My firm has seen a lot of interest from Canadians and Europeans looking to place the appreciated loonie into under-valued US Real Estate. We invest in apartments (usually 25-150 units) for our clients and we see opportunities all around us with very good annual returns. Although it does help that we are locals in the marketplace. I am available to be a resource to anyone that is desiring to purchase apartments in California, Arizona, or the Texas marketplaces.

  2. Good article, I have the same thoughts. I really do wish to invest in this opportunity. However, since I am still an undergraduate student, I have no experience and limited capital. I would greatly appreciate it if someone could lend a hand and point me to valuable learning resources or mentors.

  3. We are extremely interested in buying some property in the US but are having a hard time trying to get info on financing. Can we as Canadians get a mortgage in the US? Do we need to have an american bank account? Are there other financing options for properties in the US? We have some cash that we can use for down payment but still need financing and would rather have a mortgage than get a loan. Any information or references or resources that you have would be most appreciated. We are also interested in the purchase of an apartment building if the proper financing is in place.

  4. I am a local real estate agent who has recently taken a trip down to Mexico to look at investment opportunities and also have family currently purchasing in Florida. I am setting up a great data base of realtors in various states who are jumping at the opportunity to help Canadian investors reap maximum benefits. It is important to work with someone trustworthy and I am here to help with that aspect of the purchase.
    I would like more info from you, Mike, on what you can do for my clients who are looking and see if we can help each other out and in turn, help out many other Canadian (and especially Saskatoon residents!) in purchasing real estate in the US! Feel free to contact me! http://www.karicalder.com Thanks!

  5. Canada seems to have lot of people from asian origin and this is definitely a plus.Since the Canadian dollar is on a high , i believe this is the right time to invest.If you still have any doubts regarding Real Estate Investing feel free to visit -http://www.realestateinvestor.com

  6. I am a mortgage broker in Florida but can do loans all over the United States. Now is a great time to purchase a property in the US because of declining values. It’s not going to be that way forever. Take advantage of our weak dollar too. If you have a valid passport from your country of origin and cash to close you can get approved for a mortgage. No US credit or Foreign credit required. No green card required. The mortgage does require a US bank account by the time of closing which we will help you with. It’s super easy to qualify. Scott 954-636-3783 or email scott@lowestraterefi.com and I will call you.

  7. One thing for sure lots of my friends already migrated to Canada. Still thinking whether I should follow the steps

    cheers,

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