Canadian Real Estate Investment Opportunity on the Texas Gulf Coast

Canadian Investing Opportunity in the United States

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!
Source: bizops.ca

Canadians Interested in US Ownership

"I see more clients with successful rental properties in the United States than here in Canada." I find many clients rent out their US property or buy through a shared program like hotel condos. "When they buy in the United States, they tend to do a better job with their investment. They pay more attention to details. We rarely have someone coming in with a loss in the US."   -David Ingram, Vancouver-based CEN-TA Services

Canadians Flying South for a Deal

Doug Morrison saw the snow outside his Edmonton, Alberta, bedroom window one morning last week and knew this was the time. Three hours later, he was on a plane to Palm Springs, Calif.

By lunchtime, the 49-year-old Canadian bureaucrat was checking out a two-bedroom condominium on a golf course, priced at $322,500. Later that afternoon, Mr. Morrison pondered the deal as he dined in shirtsleeves at a sidewalk table.

Cold-weary Canadians have long flocked south for the winter. But they've had a powerful incentive in recent weeks: a favorable exchange rate that last month put the Canadian dollar at a 30-year high against the dollar.

In states such as Michigan and Montana, that has meant Canadians sweeping across the border to snap up consumer goods including clothes and cars. And in the snowbird haven of Palm Springs, it's given a glimmer of hope to real estate agents suffering from the slowdown in housing sales.   Source: dentonrc.com

Look into the uncrowded, underdeveloped, and undiscovered Texas Gulf Coast, the "Middle Coast". On average South Padre Island and the surrounding area is 40% more affordable than Florida or California.

Contact Roman C. Esparza for Canadian Investments Phone: 956.433.9600