Jan 15, 2016
Now could be a good time for Canadians to consider selling their property in the US. The conditions are becoming very favorable mostly because of the currency exchange. As of today 1 US dollar is worth 1.45 Canadian dollars. Just four years ago the USD and the CAD were trading evenly, or at par, with each other. See the chart here. That is a 45% increase since 2011. It's been 12 years since the US dollar was this strong against the Canadian Dollar.
For example, if you own a property here in Florida that is worth $300,000 USD, that is equivalent to $435,000 CAD. In the past 20 years the most the CAD dollar has been against the USD was $1.60 in January 2002. We are fast approaching that point now and who knows if it will get that high. The two currencies will continue to fluctuate and there is no telling where it will go from here. Eventually it will shift again and any gains could be lost.
As it becomes more expensive for Canadians to travel and spend time in Florida and the rest of the US, I see more of them selling and taking their money home. Here in Broward County, an area very popular with Canadian snowbirds, I have noticed it has gotten tougher to sell beach and golf course properties over the past year. I see prices in those areas flattening because Canadians are not buying like they were when the two dollars were at par with each other. Some folks will argue presidential politics strengthens the argument to sell now. I think it is a bit too soon to tell how that will affect Canadian property owners.
If you are Canadian and bought a $200,000 property in 2010 or 2011 you have benefited not only with an asset that has appreciated 30% to $300,000, but the the currency exchange has given you the added benefit of an asset that is now worth double what you paid for it if you sell it and take your money back to Canada ($435,000 CAD). You can always continue to visit Florida by renting seasonally with the huge profit you are making. We are approaching the best selling season, which is now through early summer and conditions may never be this favorable again.
You can see what your property is worth at this website I run, right here. You will get an instant estimate of it's value. Be sure to then multiply the value by 1.45 to see what it is worth in Canadian Dollars. For a more accurate market valuation I would need to see your property.
If you are considering selling contact me at 954-895-2431 and I can handle it all for you. If you are outside of my area I can also find the right agent for you.
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