[1]Marketing to International Buyers
By Mike Mattina
Sarasota is in a prime position to attract potential Canadian home
buyers. A quick, inexpensive flight from Buffalo and they’re on the way
to experiencing Sarasota. The allure of Florida sunshine, a struggling
housing market and the Canadian dream of owning a piece of paradise are
truly affordable realities in our present economic state.
The travel relationship between Florida and Canada finds Canadian
visitors spending more time and more money in Florida than in any other
U.S. state. Representing $1.94 Billion spent in 2005 among the 2,038,700
Canadian visits.
According to the 2008 National Association of REALTORS® “Profile of
International Home Buying Activity,” between 150,000 and 190,000 homes
were sold to foreign nationals from May 2007 to May 2008. This year,
Canada replaced Mexico as the country with the largest share of foreign
buyers with the percentage of Canadian buyers doubling to 23.5% percent
from 11% last year.
Canadian’s are completely enamored with the American Culture. Their
inflated “loonie” exchange rate, along with Florida’s bargain real
estate market, has them perched to purchase. Canadian’s have a greater
sense of overall wealth in the U.S. Their currency goes further to
achieve a paradise lifestyle, and let’s face it…the Florida life is hard
to beat.
From an investment standpoint, of course there are some great
opportunities for Canadian buyers. It is also our opportunity to make
sure that we promote our community to those interested in purchasing on
Florida’s SW Coast. We must take the steps to become more aware of the
desires and investment strategies of the Canadian buyer. Educating our
real estate professionals will assist in meeting the needs of the
potential Canadian buyer. Gain knowledge of the laws and the distinct
differences that affect titling of a property in the U.S. Understand the
lending differences and options for the Canadian buyer, if not a cash
purchase.
The Royal Bank of Canada (better known in Florida as “RBC Centura”) has
been very aggressive in the U.S. and can finance Canadian’s interested
in U.S. properties. Financing can be arranged within a very short time
frame based upon the client’s Canadian credit, their Canadian assets and
their customary down payment of 20 to 25%. As the credit market
tightens, RBC Centura views a Canadian investor as a better client than
most U.S. banks. Additionally, beyond the second home or vacation home
purchase, Canadian investors experience tremendous success with U.S.
rental properties.
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