Why Canadians Are Giving Florida Another Look.
It is very possible to finance your Florida winter vacation home through RBC Royal Bank in Canada™ or RBC Bank™ right here in Florida. You must be a Canadian citizen and not just a resident to apply for these mortgages. Your property here in Florida must be used as a residence or vacation property but NOT an investment.
Why Now?
Younger Baby Boomers in their mid-40s to mid-50s are reaching the age when some are taking active steps toward retirement. For many, that means looking for a house in a warm climate with lots of amenities from which to choose. In the last two years U.S. prices have been falling; but it seems that prices are now stabilizing and the window of opportunity is open. For the Canadians who are considering retirement in three to five years, the return on their investment looks favorable to purchase a Florida property for $150,000 to $200,000 that two years ago sold for $350,000 to $450,000. These new buyers will also likely find familiar accents in their new Florida neighborhood. Currently 50 % of our buyers are Canadian eh!
Dollar for Dollar, It’s A Very Tempting Opportunity
The exchange rate for the Canadian dollar and the U.S. dollar is close to par. Movement of a few percentage points makes a substantial difference in a purchase of $200,000. There may be no better time to take advantage of the favorable exchange rate in combination with historically low mortgage interest rates and a choice of properties at affordable prices. Understanding the process for locking in a current exchange rate for a period in the future, for example, can make a difference of tens of thousands of dollars when it is time to close on a new property.
Short Sales and Foreclosures Draw Attention
The prospect of getting a tremendous bargain, which a foreclosure may represent, is offset to an extent by the length of time and complexity of the process required to buy in a short sale or to purchase a foreclosed property. The appeal of capturing the very best deal also extends to different geographies around the state. Understanding West Coast vs East Coast and Northern vs Southern markets is very important in weighing cost and value, but is not easy from 2,000 miles away.
Homeowners Associations offer prospects of Convenience, Choice and Confusion
A property might have a low purchase price, but require a significant monthly fee paid to the homeowners association. Understanding those HOA fees and what they cover can increase the comfort level for prospective buyers and help them establish realistic budgets.
Lifestyle Is Key
For some buyers, a condominium with no frills, but plenty of access to the sun and surf is just the right fit. For others, the gated community offering golf, tennis, pools and other club amenities makes the decision easy. The Florida market provides both kinds of properties – and others in between. But for prospective buyers who are just starting the process and who want to know the implications of cross border tax issues, immigration restrictions and other critical information, the decisions about the vacation and retirement home are complex.
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