|A Perfect Storm||14 December, 2016|
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Why Now Might Be the Time for Canadian Owners of US Property to Maximize Profit
BY KEVIN WETHERELL
CEO/Broker, Clearwater Montana Properties
Read More About Kevin
As a border state, we have a fair number of Canadian property owners in Montana. Most that we talk to are acutely aware of how persistently low oil prices have produced consistent downward pressure on the Loonie. But the savvy among them are realizing there's an opportunity to benefit from the current strength of the US dollar, a strong rebound in the American housing market, and a historically favorable exchange rate.
In fact, according to a recent article from CBC News, "Substantial foreign exchange gains and appreciation in home value over the last five years have created a 'perfect storm' for Canadian homeowners in the United States." Consider this: Based on the current exchange rate, a Canadian owner would realize an additional $33,333 CAD for every $100,000 USD of their US property's sale.
While the selling opportunity is compelling now, the coming year may offer a different outlook. The Canadian dollar tends to maintain a positively-correlated relationship with oil prices in the long term. This suggests that an increase in oil prices would in turn boost the strength of the Loonie – consequently eroding the benefit of the current exchange rate. Perhaps of critical importance, OPEC announced on November 30 that it would cut global oil supplies – an action that is almost certain to increase oil prices.
Given these market conditions, all signs indicate that now is a good time for Canadians who hold US property to maximize their return on investment. And if this describes you, Clearwater is ready and well-positioned to be of assistance. Contact us today to learn more.
Clearwater has partnered with Canadian buyers and sellers for over 22 years. With 32 offices in Montana, Idaho, Washington, and Wyoming, we have the local knowledge, global reach, and cutting-edge marketing tools required to maximize listing exposure and get properties SOLD. Decades of success with recreational, vacation, and investment properties demonstrate that we are equipped to deliver results no other brokerage can match.
Contact: 800.577.3013 | Info@CMPMontana.com