For Americans looking to invest in real estate in another country, it is important that you start off with knowledge of both the country as well as the property you’re looking to invest in. Canada hosted the Winter Olympics in Vancouver and has dealt very well with the current global economic crisis. Other countries including the United States have nearly double digit unemployment along with slow job growth. Why Canada? Perhaps it’s the banking industry or maybe it’s their growth in the financial sector.

Canada’s banking industry, unlike the US, has much stricter regulations and qualifying levels. Part of the reason the US mortgage industry had problems was due to the fact that many unqualified borrowers were able to obtain loans. Canada escaped some of America’s pitfalls by sticking to their standards. Much of Eastern Europe has experienced much of the same hardships as their American counterparts. According to experts, even though housing values fell during the recession in Canada, they have regained most of their value and have even gained value in some instances. Interest rates have remained about the same throughout. This means that investors can likely expect low volatility. Rental rates are increasing and lenders are lending to both home and real estate investors but, they lend with the same cautious approach that kept the market safe.

Another reason why an American should consider real estate investments in Canada for Wealth Management is the strong Canadian dollar.  Investing in a country with a strong dollar could provide a shield should the US dollar continue to stay weak. The US dollar has been going through some rough changes despite what the stock exchange may indicate. There have been periods over the last 2 years when the US dollar was less the Canadian dollar. This may signal that it is a good time to look to invest your money in foreign productive markets. Also, forecasters predict that there could be additional real estate and economic downturns on the way in America.

This article was written by Jennifer Nobles. Jen is a promoter of good business and solid financial advice. During her time studying finance and through her career, she has developed an expertise in money market funds, bankers’ acceptances, flow through shares, gold production, and mining stocks. These investment opportunities can be a great part of a diversified Wealth Management portfolio.

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