To invest in the U.S. or hold off in the short-term? While the fluctuating Loonie and authorities clamping down on the residency rule is causing headaches for some, the lure of affordable housing stock and promises of high returns is too much for others. So, what should you do? Sean M. Greene, director of Platinum Investment Real Estate Group discusses.
Video transcript below:
Reporter: The Loony is falling, so is low cost housing. Opportunities are still aplenty in the U.S., but are Canadian Investors running out of time to get a slice of the market? We find out in this week’s episode of investor insight on CREW TV.
Cash has been king in U.S. transactions, the dipping loony is adding to the cost of the American dream. But all is not lost. Are the U.S. Banks finally going to loosen their purse strings for Canadian Investors?
Sean Greene, Owner, Platinum Investment Group
Sean Greene: Personally we have seen a loosening within the banking, the U.S. banking market where loans are now becoming a little more available, readily available for a Canadian, what we would call a non-resident of the United States. The reason for that is that the markets have shown that they have been able to go through all of the turmoil of the 2007-2008 financial crisis and a large amount of e-leveraging has taken place and I believe that the banks are now starting to feel that the market is going to see a steady increase in values over the next several years.
That being said Americans have really have their personal credits beat up when it comes to obtaining mortgages and are still finding it very very difficult to qualify for mortgage financing. Therefore my feeling is that the banks have opened up, have loosened their criteria to allow someone like a Canadian to go into United States and obtain financing on a property on a mortgage, when six months ago, twelve months ago it was highly likely that if you were a Canadian investing in the United States you had to obtain some type of loan that was collateralised against something or some type of real estate or investment you had within Canada that would allow to go into United States and finance your U.S. property purchase.
My personal feeling is, we are seeing that loosen and there is now an ability to go into the U.S. into their own banking market and obtain mortgage financing from those institutions directly.