It comes as little surprise that increasing numbers of Canadians are spending more time down in Florida. As well as being an attractive proposition for Canadians looking to escape the winter blues, the Sunshine State is also proving to be a lucrative market for Canadian real estate investors. Canadians are flocking down south in record numbers and each one of them needs a property to either rent or buy.
The demand in Floridian sun is creating an opportunity for Canadian investors willing to expand their horizons, but why are so many investors ignoring cities like Orlando? With a perfect climate and competitive real estate market, it’s a region that presents a lucrative opportunity.
“More Canadians purchase property in Florida than anyone else,” says Garry Walmsley, Senior Global Real Estate Advisor at The Orlando Agency, a Division of Global Real Estate Services, who leads a team of professionals that specialize in the representation of international clients. “Over 500,000 Canadians currently own homes in Florida – that’s approximately 1 in every 72 Canadians. In the latest release of the Profile of International Activity in U.S. Residential Real Estate, Canadians accounted for 37.0% of all foreign purchased real estate in Florida. In fact, Canadians purchased $7.03BN of real estate in Florida between April 2016 and March 2017, which represents an increase of 227% against $3.09BN invested in 2015-2016.”
Whether an investor wants to follow a buy, hold and flip strategy, or simply buy and rent-out, the opportunities in Florida are plentiful. But, with so many Canada-based investors either unwilling to transact business across the border or unaware of the opportunities on offer, the majority of the yield is going into the bank accounts of American investors.
“It’s a real shame for those Canadian investors who don’t expand their horizons beyond Canada,” says Walmsley. “In a traditional real estate market, like Toronto, opportunities are starting to look really limited. But in the world’s number vacation destination, it’s a completely different scenario. The market is international one and it’s less competitive than the Canadian market, where the opportunities to earn a solid income as an investor are diminishing.”