Currency Exchange Arbitrage in Fort Lauderdale Real Estate

36: In a recent blog post and video, the Gary Lanham Group at Coldwell Banker Fort Lauderdale Beach Office explored the convergence of two important forces. First, we delved into the attraction of the 2019 Pompano Beach housing market as a South Florida waterfront or beachfront condominium, single family, duplex, or triplex marketplace. No Broward County community can rival Pompano Beach as a prime coastal town. If you want a neighborhood combining lifestyle, entertainment, dining, and beautiful living, Pompano Beach is unmatched.


The second force was the compelling argument behind buying a residential property for purposes of investment and retirement planning. Those families who bought in Pompano Beach anytime since the 1950s and even into the 2000s have seen a marked appreciation in their asset value.

Financial appreciation, currency devaluation, currency exchange, and the real estate market has Canadians inextricably intertwined with the Florida housing market in 2019.

Generally speaking, there’s no better investment for long-term appreciation than real estate. In a market like South Florida and the Pompano Beach real estate market, little performs better.

A snapshot of the buyers includes people from the Northeast U.S., including New York, New Jersey, Connecticut, and other important tourism and residential feeder markets.

Yet those who have seen the benefits of “currency arbitrage” have been international buyers who sought to invest in Pompano Beach. This is especially true for our neighbors to the north - the Canadian buyer and investor.

In fact, this applies to any South Florida real estate market that is enjoying value appreciation. Communities include Fort Lauderdale, Boca Raton, Sailboat Bend, Wilton Manors, Coral Ridge, Imperial Point, Coral Ridge Isles, and Oakland Park.

Early Investors, Big Returns

Pompano Beach’s history has been tied closely to market development and the dynamics brought by an influx of Canadians. To be sure, visitors from New York, New Jersey, Connecticut, and other areas, flocked here - only increasing as the years passed. As far back as the 1950s and 1960s, Canadians were among those northerners escaping cold winters.

The Pompano Beach waterfront real estate market, however, is the quintessential South Florida lifestyle play.

From the early years, the relationship between the two currencies - the American and Canadian dollars - proved beneficial to those international investors. While values have fluctuated, currency parity between the two dollars has helped investors enjoy stable and travelers and buyers coming.

As discussed previously, Blue Wave Certified beaches, world-class fishing, dining, shopping, and even entertainment venues draw patrons from across South Florida, the U.S., Canada, and even overseas.

Domestic and Canadian buyers have been those fleeing wintry northern weather. Whether millennials, baby boomers, empty-nesters, retirees, or grandparents looking for beachfront destination to live, play, and enjoy their family in the sub-tropics, Pompano Beach is a gem on the Atlantic coast.

Canadian Investing in Florida Real Estate

How can real estate and currency exchange considerations affect an international buyer’s value appreciation? Let’s work with a hypothetical purchase as it relates to the 2019 Pompano Beach housing market, because Canadians and the Florida housing market exemplify both the evolution and trends.

Imagine the Canadian owner of a Pompano Beach property seeks to sell a home, condo, duplex or triplex. For this discussion, the property is valued at $400,000 in Canadian dollars. So calculates to about $340,000 in U.S. dollars.

Let’s flip the equation. If the Canadian owner was to sell it in U.S. dollars, that would be $340,000 Canadian, which translates to $400,000. That equates to a $60,000 gain, in addition to the appreciation of the property itself.

International Currency Exchange & Real Estate

Many investors play the currency exchange market. Just as Canadians helped transform the Pompano Beach real estate marketplace, wealthy Canadian investors who are not as impacted by currency fluctuations are arriving in the market.

Many are selling to take advantage of the currency exchange to take money back to families in Canada. Some fear the uncertainties of the U.S. financial market or the relationship between the two currencies.

It’s critical for people buying and selling real estate to understand how they are motivated by life events and current economic cycles. Some people are selling because of currency exchanges, cycles and fluctuations. Currently, the Canadian dollar is worth less than the U.S. dollar. But if a Canadian owner sell in U.S. dollars, they're taking more money home.

That’s why it's so important to understand personal life cycles, economic cycles and what motivates people to buy and sell - and when. Beyond the real estate appreciation, sellers and buyers alike can take advantage of market fluctuations.

At the Gary Lanham Group at Coldwell Banker Fort Lauderdale Beach Office, we take seriously our role of helping Canadian buyers and sellers, as well as those from across the Americas, Europe, even Asia, take advantage of a strong real estate market.

Fort Lauderdale Buyers & Sellers Welcome

The Gary Lanham Group at Coldwell Banker Fort Lauderdale Beach Office appreciates what Canadian buyers and sellers have meant to the Pompano Beach real estate marketplace. Their dollars, whether Canadian or U.S., have boosted our economy. Beyond the purchase price, the taxes they spend, or the money they spend wining, dining, going to area entertainment, or just enjoying life in South Florida, it's a wonderful time to live in Greater Fort Lauderdale.

And if you speak French, Spanish, Portuguese, or English, we are a multilingual team. We want to work with you and help you maximize your investment - and future in South Florida.

Gary Lanham Group at Coldwell Banker Residential Real Estate is a boutique real estate organization offering sales, leasing, and brokerage services to the Greater Fort Lauderdale area. A listings agent matches home sellers with buyers and tenants with landlords. While Broward County is our universe, we focus on Coral Ridge Country Club, Oakland Park, Wilton Manors, Pompano Beach, and the surrounding areas. Call us today at (954) 695-6518 or visit www.GaryLanhamGroup.com.

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