During the year from April 2016 until March 2017, more Canadians have bought real estate in the United States than anyone else, according to the United States National Association of Realtors. In 2016, only China bought more U.S. properties than Canada, which is quite interesting. The first question of course is why, and the second question is, where do they get the money to buy.
It’s not so easy for someone in Canada to borrow money from a bank in the U.S., which means that Canadians are either borrowing from a bank by securing a line of credit, or refinancing their mortgage. This will explain where they get the funds to purchase property in the U.S.. Borrowing money to make an investment isn’t a bad thing, and many financial advisors will tell people so.
If you want to invest in real estate, one of the first questions will be whether you can afford it. You can start by using a mortgage calculator to determine what your possible repayment will be on a specific mortgage amount, which will help to get you going in the right direction.
How Canadians are Buying Property
Canadians are only behind China when it comes to the most U.S. real estate purchases; but what’s interesting to note is that China has a population of more than 1.3 billion, while Canada has a population of less than 40 million. But Canadians are not only buying U.S. real estate, they are also selling U.S. properties as well.
It’s no secret that U.S. real estate has doubled in more than one market during the last decade. And many purchases were done about a decade ago when the Canadian dollar was around 0.76USD, which leaves a pretty good return on investment. It’s a very good investment option.
Homeowners can significantly grow their financial position by investing in property. And with the U.S. property market growing so exponentially, it’s always a good location to start. It’s important to do your homework and speak to an expert to help guide you in the right direction if you want to invest.
Buying property is definitely a good way to increase your wealth; people want to own their own home, and many want to invest in real estate. You can get started by using a mortgage calculator to get an accurate estimate on what a home loan could cost you, and for how much you could qualify.
For more information on how to obtain a mortgage in order to purchase U.S. real estate, speak to the Mortgage Guys. Our expert team can help you with accurate and valuable information on mortgages, equity loans and more.