Canadian Investors in Northern Virginia – Why, What and Where
It’s no secret that Canadian investors in real estate have been making inroads into the US property scene for a long time. In fact, until just a few years ago, Canada was the single largest foreign real estate investor in America. While Chinese investors recently outperformed Canadian investors, you’ll find our northern neighbors are still avidly buying up properties across the country. And while states like Ohio, Utah and Michigan are very popular, many choose to buy in northern Virginia.
Many areas have undeniable appeal to real estate investors from abroad. Utah is rich in resorts, and buying properties around these areas gives investors a decent reward on their investment. Ohio has a very stable population, and cities like Columbus have increasing demands in the area of rental housing, making them smart choices. Even Detroit, Michigan is easy to understand – investors love the rock-bottom pricing. Why do so many choose northern Virginia, though? It’s all about location. Northern Virginia properties give investors something impossible to find anywhere else – proximity to the nation’s capital, combined with relatively low real estate prices and a stable real estate market.
Where in Virginia?
The “where” of things is a bit harder to nail down. Chinese investors tend to buy properties in highly urbanized areas near high-tech firms, or else within cultural enclaves in the state. Canadians share a very similar culture with Americans, and aren’t restricted by language barriers. Additionally, many are choosing to move away from highly urbanized areas for their investing because of high competition from other international investors. Where are they turning? More and more are putting their money into properties in smaller regional hubs that connect small town America, rather than big cities. So, you’re more likely to see Canadian real estate investors active in places like Charlottesville than Arlington.
What Are They Buying?
This one is even more difficult to nail down than the “where” – Canadian real estate investors are interested in a very wide range of different properties. Those with enough capital tend to focus on high-end properties with proximity to major hubs and the corridors of power in D.C., while others focus on smaller multiunit properties away from those major hubs. Single-family properties are popular as well, and provide a significant return on an initial investment. More and more Canadians are considering multifamily housing as a good investment as well. Apartment buildings, condos and the like are easily marketable and in high demand, particularly as northern Virginia’s population continues to climb with the recent influx of new employers and international residents to the area.
Key Features for Canadian Investors
Canadian Real Estate Wealth is a leading magazine dedicated to real estate investors in Canada, and it offers valuable insight into the minds of these investors, particularly what makes an appealing property. In an article published in December 2014, Ken Davidson recommends basing an investment decision on factors like high accessibility, public infrastructure redevelopment, employment trends, population growth and price.
Canadian real estate investors find that northern Virginia meets all of these criteria, providing a sound investment option.