The condo market in Canada may be cooling off, making Canadian investors take a look at Florida as a place to hedge their bets. Canadians already constitute a significant part of the market in the South Florida area. With winter on the way and with concerns in Canada about their condo market being close to its peak, those Canadians may be putting a lot of money into the Miami condos or Miami waterfront homes in Miami-Dade, Palm Beach and Broward county areas very soon.
US Economy Is Improving
While the news about the housing market has been up and down in the US, the US housing market is improving overall and a combination of issues in other nations are making Florida investment particularly attractive. For instance, the value of several international currencies has gone down over past years and that has made investing in the US more attractive on the international market.
The South Florida real estate market
has shown many of the features that investors are looking for. Rents are going up and the overall rental market has been very impressive in recent years. At the same time, however, the prices for homes and condos have remained low, creating an opportunity for investors from abroad who want to place some of their money in a US market. In particular, Miami’ many condominium properties as well as new projects, make it a particularly attractive place to invest.
The Florida Realtor’s Association estimates that nearly $4 billion in property is acquired by foreign investors every year in the South Florida area. These investors tend to prefer putting their money into condominiums, though all types of residential properties provide vehicles for investment for these individuals.
Investors from other nations are also looking into and expressing interest in distressed properties. While builder confidence is still in negative territory, according to surveys, foreign investors are major forces behind the condo boom that’s about to overtake the south Florida area once more. A number of new towers are being proposed and dollars from outside the US are playing a major part in making that happen.
Where foreign investment is concerned, however, no one outmatches our massive neighbor to the north in terms of how much real estate they purchase. Canadian investment accounts for nearly 40% of all international purchases, according the Florida Association of Realtors.
With Canada’s marking looking shaky, Canadian condominium investors are turning south more frequently when they look for opportunities. The US real estate market may not be raging like it was a decade ago, but for sure it will be very soon as it has been showing signs already, including much more stable market, gradual and sustainable recovery as well as very strong commercial real estate market in Miami. These attributes make it attractive to many foreign investors.
The ultra luxury oceanfront condos in Sunny Isles Beach for example, as well as other condominium properties available in the Miami area have always been popular with investors. As the economy continues to climb back to booming, it’s likely that investors in other nations with economic problems that have manifested already or that are about to may want to get in on the Miami market at a time when prices are low, rents are high and people are looking for great places to call their homes once again.