NEW YORK (MainStreet)Canadian real estate investor Victor Menasce has bought and sold 30 American properties in the past two years, including houses and condos in the Sun Belt, Pennsylvania, Illinois, Florida and Arizona. He even bought a baseball stadium in New Jersey.
"We see value in places that Americans don't notice quite so readily," says ottawa-based Menasce, who is author of the book The Great Canadian Takeover (CreateSpace, 2013).
In fact, international buyers purchased $82.5 billion in U.S. real estate last year up from $66.4 billion in 2011.
"The reason this is happening is because we're living in a global economy," said Rick Raddatz, a political commentator and founder of TheSolution.org in Denver, Colorado. "As international market places become integrated, we're discovering more efficient ways to work with each other. The internet also enhances global interaction,"
Menasce is one of many Canadians who are buying $19.8 billion of residential real estate in the U.S., according to the National Association of Realtors.
"The trend is a result of a combination of factors including the devaluing of the US dollar, a strong Canadian dollar, an inexpensive U.S. real estate market and properties selling far below construction costs," said Menasce. Compared to the prices of homes in Canada, U.S. residential real estate appears to be on sale. The median sale price for a house is $353,000 in Ottawa, $510,000 in Toronto and $149,000 in Tampa, Flor.
"Initially, the impact is positive, because when Canadians buy a home, they also spend money on furniture, restaurants and other things, so it's positive for the U.S. economy, because there's more cash coming into the country," said Jenny Witterick, a chartered financial analyst and president of Sky Investment Council.