More and more of the investors in the U.S., including over 50% in Las Vegas, are paying cash for properties and saying good-bye to highly mortgaged property in Canada that doesn't cash-flow.
Although Canada has not seen the same impact of the recession as the United States, it has not gone untarnished. Large urban centers are seeing more and more foreclosures. In contrast, small rural communities have seen a huge hike in home and land appreciation and the availability of affordable housing is increasingly sparse. Many Canadians are investing their money in the States, where affordability and return on their investment may be much more lucrative.
For example, an investment property in Canada at $350,000 requires a 20% down payment of $70,000 and a mortgage of $280,000. The challenge becomes servicing this mortgage debt and trying to cash-flow the property. Canadians are realizing single family properties can be acquired in the U.S. with a cash purchase, rented out in a market that does create cash-flow, and requires no mortgage.