Canadians that purchased years back are profiting
Canadians that purchased homes back when prices were low after the economy was flattened out about 3 to 4 years ago may be in a great position to sell. Now that the U.S. dollar is outperforming the Canadian dollar, purchasing power for the Canadians has weakened tremendously but selling could be another thing. Back when the homes in Florida were at their lowest point near the tail end of the recession, many Canadians were making home purchases. Now those homes have probably appreciated handsomely. With the sales prices on the rise and coupled with the exchange rate of the American dollar, some Canadians are enjoying a hefty profit on the sale of their vacation homes.
Even for some Canadians that purchased when prices were a little higher than they are now, the difference in the exchange rates can make the transaction a positive event. Some buyers that purchased for example - $30,000 higher in 2008 may actually break even on a sale now because the American dollar is paying about $1.20 over the Canadian dollar. Of course a seller has to do their calculations and take the normal selling factors into account such as commission charges and closing costs. Some items a seller can expect to pay are title charges and documentary tax stamps to the State of Florida which is a Real Estate transfer fee. The Transfer fee is calculated by taking the sale price - example - $300K divided by 100 is 3000 units. Take the 3000 units and multiply by $.70 (70 cents) which will yield an end result of $2,100.
If you're a Canadian owner of Real Estate and lightly thinking of selling your home in Florida, you may want to shift gears and do some serious thinking and number crunching. Remember, the exchange rates could flip anytime and an opportunity may be missed!