Canadians Buying Property In The USA May Be Retiring Early!
Canadians buying property in the USA may be retiring early either due to the new vacation homes they are picking up at record low prices… or, due to the amount of rental property they can buy with the stronger Canadian dollar!
In particular, they are flocking to Arizona these days… and it’s not just for the blue skies and warm temperatures. Arizona Real Estate is on many people’s minds when they touch down at Phoenix Sky Harbor Airport and it’s for good reason: low, low prices, a Canadian dollar near par and the lowest interest rates in history. These three factors combined make Arizona for Canadian buyers, a unique opportunity when Canadians are looking for a cash flow investment or great vacation property.
Of course, many of the Canadians buying property in the USA already know that opportunities to buy like this are rare, but when you look at the amount of cash flow a Canadian investor can buy in the USA, in comparison to that of Canada… The US deals win hands down. In Arizona for example, we have multi-unit investment properties that are selling for 10k per door! Many of these are going for less than 200k and are cash flowing 3 or 4 thousand per month! For some, that income will replace what they are earning at their jobs… So why not retire early?
But more than any other area of the country, what is it that is drawing Canadian Buyers in record droves? If you had to add to the obvious being great weather in Arizona, it is the fastest growing state in the U.S. and its economy is faring better than the other sunshine states such as California, Nevada and Florida. With a population forecast to double by 2035 and an unemployment rate lower than the U.S. national average, Canadians should realize that Arizona is poised to continue to lead the nation in job growth in the areas of health care, green technologies, education and tourism-related industries. This makes for a stable economy and points to stability and growth in the years to come making investments solid for the long term. Of course we are experiencing a pretty severe downturn at the present moment but what is attracting Canadians in particular is confidence in the future. So… it doesn’t take much to understand why Canadians buying property in the USA are poised for solid future financial benefits.
Commercial land buyers and investors know this. Their 20-50 year projections have propelled them to purchase land in outlying areas with the secure knowledge that the population of Phoenix will increase significantly in the next decades. Increased population means more growth in every sector of the economy and the goods and service that will be need to provide for the population and spur more commercial growth as well.
Anyone who is investing in Arizona real estate knows this. They are capitalizing on the factors that at the present moment represent a golden opportunity to plunk down their hard earned cash and get a piece of what will undoubtedly be valuable real estate as we progress forward and move past this downturn and onward toward the future.
Stats show that Arizona real estate prices have dropped more than 50% since their peak in 2006 and newer homes can be purchased for as little as $50 per square foot, making this a great opportunity for Canadians buying property in the USA to purchase a second home for those in retirement, or planning to spend more time in the sunny south sometime in the future. Contrast that to the historical average annual increase of 7% per year since 1980 and this market bottom has nowhere to go but up over the medium to long term. Canadians looking to buy property in USA and Arizona in particular will find that homes here are in great demand for seasonal or full-time rental. Our property management companies tell us that there are not enough rental properties available for the large number of qualified tenants.
Coupled with the value of Arizonan real estate itself are the many amenities for a great lifestyle. Just look around! We have incredible golf courses dotting the landscape. It often makes me stop and wonder how much green we have in the desert!
We have attracted world renowned chefs and world class restaurants with every type of cuisine imaginable and for every palate. Our municipalities are committed to the upkeep and the aesthetic beauty of the infrastructure spending millions of dollars to build and maintain our roadways, bridges not just for the sake of maintenance but if you look closely, they are beautiful in their design. Why wouldn’t you look to include Arizona in your retirement plan?
The Phoenix Metro area is a hub of activity for National Sports Teams. We have pretty much all the bases covered (no pun intended)… ehave the most recent and modern football & baseball stadiums representing state of the art facilities. We have, baseball, hockey ( a real important one to our Canadian friends…), basketball are all represented in the National Arena and if that isn’t enough, for real enthusiasts we have Spring training for quite a number of professional baseball teams with the newest training facility built specifically for the San Francisco Giants in Scottsdale this past December.
Obviously, Canadians buying property in the USA have their pick of destinations, but Arizona seems to be one of the prime targets…
Arizona draws many great entertainers and has unequaled venues in which to enjoy them as well. If your liking is country music, we’ve got it..Is opera your thing? We’ve got great venues to hear and see world class productions. Great pop artist and rock artists visit Phoenix and put great festivals together every year!
As you can see there are a huge number of reasons why Canadians or anyone else for that matter understand and act on buying Arizona real estate. It important for anyone, especially Canadians who have made it loud and clear that they intend to buy in Arizona and will continue to, work with an experienced Arizona Realtor who understands the market, and is familiar with the process as it pertains to Canadians. The transaction process, financing and tax rules for Canadians are not the same as they are for Americans. Knowing these differences can be crucial in making sure your purchase goes smoothly.
