Americans scramble to buy Canada’s real estate

Dipping of Canadian dollar creates housing frenzy

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They are impressed by the health care, bargain meds, clean air, favorable exchange rate and clams. The buzz of the upcoming Olympics doesn't hurt either. Retirees and aging baby boomers "from the States" are drawn to Canadian property during a variety of seasons and for a variety of reasons, but it's best to do your research before signing on the bottom line. Americans face two large issues when investing in real estate abroad. First, you have the appreciation or depreciation of the real estate itself–or the "property side" of the decision. You also have the currency risk when you sell the property and bring the money back into this country. If the Canadian dollar slides further, you run the risk of losing money on that investment. However, if the Canadian dollar improves against the U.S. dollar, your investment suddenly rises significantly. Before those Canadian dollar signs in your eyes block your brainpower, research the capital-gains ramifications if you expect to execute a ...