Posted 1.24.13 @ 12:5
Many Canadians are heading down to Florida to get a good deal on a home, but they’re having to fight Chinese buyers doing the same. The inventory of distressed (foreclosed) homes under $150,000 USD has dropped steadily over the last year, leaving more and more Canadians struggling to find a cheap place to stash their money. While Canadian buyers tend to be more hands on and want to go view the property before they decide whether or not to buy (always a smart choice!), many Asian buyers find a picture sufficient.
A Toronto “home finder” for US properties was recently talking about how a Chinese investment group bought up a 36 unit condo without even flying in to check on it. Canadian interests were still waiting to book their flight, getting beat out because of a more hands on approach. While Asian interest in Florida real estate is still minor, it’s expected to grow over the coming years.
Bulk Investors More of a Threat
Bulk investors are actually currently a greater threat to Canadian snowbirds looking to buy a new home in the Sunbelt. They’ll swoop in, buy up bulk distressed properties all at once and sit on them until the time for development is right. Some are Canadian companies, others are Americans – but they’re beginning to wipe out the bottom rung of the market. Wherever you turn in the US you’ll see billboards for home buying services looking at distressed and undeveloped properties (“We buy ugly houses” is a popular one!) One of the better known groups, Blackstone Group LP bought up over $2.5B (billion, with a b) of 16,000+ properties across the country, using them as rentals and long term investments.
Brazil a Contender
Surprisingly enough Brazilians have been buying up a lot of real estate in Florida – they’re paying on average 50% more than other bargain hunters that are coming in from outside the country like Canada and China. If you don’t mind paying around $200,000 to $300,000 for a property down south, you might still be able to find a deal.
Time to Start Considering Deals Closer to Home?
Of course we’re going to recommend Oakville luxury homes over other options, but with more and more interests vying for cheap properties, the supply of cheap properties dwindling and the US economy resurging after years of problems, it may not be the best time to invest in Florida. You can still find great deals in the Greater Toronto Area, but nothing is going to scratch that Snowbird itch like a home in America’s Sunbelt. There are other states for people looking for a warm climate – the Gulf Coast has plenty of deals, Texas, the Greater Southwest (New Mexico, Arizona, Nevada). But the days of cheap houses right on the beach may soon come to a close.
We Have Snow, But We Also Have Better Houses!
Sure, Ontario has snow but when you buy here you don’t have to (usually) deal with a property manager or hurricanes while you’re away. Check out what Oakville real estate has to offer you and see what the Goodale Miller team can do for you!