The Canadian dollar has been struggling against the greenback, political tensions between our two nations are intensifying, and climate change is increasingly hitting popular vacation spots.
Any one of those factors might cause U.S-bound snowbirds to reconsider booking their flights, but the combination of all three are leaving Canadians who own vacation homes or timeshares in states like Florida or California scrambling to offload their properties.
But is selling the best move, or are there smarter financial strategies to consider? Here’s what you need to know before making a decision you might regret.
Costs are soaring for Canadian property owners down south
A report from the National Association of Realtors found that Canadians accounted for nearly 25% of foreign property sales in Florida between April 2023 and March 2024, up from 11% the previous year. Financial planners report that clients are increasingly questioning whether holding onto U.S. real estate is worth the cost, especially as maintenance fees, insurance, and property taxes continue to rise.
Jackie Porter, a certified financial planner, notes that exchange rate fluctuations have significantly increased the cost of U.S. homeownership for Canadians.
“A big challenge for one client of mine is she purchased her property in Florida when the dollar was at par in 2010 and has dealt with the falling loonie ever since,” says Porter. “This means her costs for owning and maintaining the property have gone up over 30 percent as the exchange costs do not factor in inflation as well.”
Additionally, she says, “the property taxes and insurance costs for a beachfront condo in Florida have also skyrocketed due to climate change.”
Related: What to know about buying property in the U.S.
Five steps to selling your U.S. vacation home
If ballooning expenses and an invigorated sense of patriotism have you leaning toward selling your Florida vacation home, you will want to sit back and think carefully about how and when to do so. It’s crucial to approach it strategically to maximize returns and avoid unnecessary financial pitfalls.
Here are things to run over with a professional:
- Evaluate the market.
Check recent sale prices on listing sites like Zillow, Redfin, or Realtor.com to gauge the current demand. A real estate agent who specializes in foreign-owned properties can provide additional insight. - Understand the tax implications.
Selling U.S. property as a Canadian means you could face capital gains taxes in both the U.S. and Canada. Consulting a cross-border tax professional can help you navigate these complexities. - Time it right.
If the U.S. dollar strengthens against the loonie, your selling power increases. However, offloading a property too quickly in a declining market will likely come with a financial hit. - Get acquainted with the paperwork.
Choose an agent with experience in international transactions to handle paperwork, negotiations, and legal requirements. - Prepare the home for sale.
Staging, minor renovations, and professional photography can boost your property’s appeal and help you get the best price.
Timeshares can be notoriously difficult to exit. With thousands of Canadians owning them, many face additional challenges breaking free. If you're determined to get out, here are your best options:
- Contact the timeshare company.
Some developers have “deed-back” programs that allow owners to return their timeshare at little to no cost. - Resell on a legitimate platform.
Websites like RedWeek or Timeshare Users Group (TUG) can connect you with buyers looking for resale opportunities. - Hire a timeshare exit company.
Look for reputable companies with a history of successful exits and positive reviews from former clients. - Negotiate a transfer.
Some timeshare agreements allow you to transfer ownership to another party – check your contract for details. - Go over your legal options.
If your timeshare contract was misleading or fraudulent, a real estate attorney may be able to help you void the agreement.
Rent it out or sell? What’s the better move?
If selling seems risky, renting could be a viable alternative. Platforms like Airbnb, Vrbo, and Booking.com allow owners to generate income while waiting for market conditions to improve.
Pros of Renting:
● Keeps your asset while generating income
● Helps cover maintenance costs and taxes
● Allows you to sell later at a potentially better price
Cons of Renting:
● Requires ongoing management and maintenance
● Potential for problematic guests
● Market fluctuations can impact demand
Porter says that many of her clients are opting to rent out their properties to help cover costs. However, she advises property owners to carefully review their insurance policies if you decide to go this route.
“It’s important for Canadians who own homes in the U.S. to read the fine print of their insurance contract to ensure they are properly covered, so they don’t face additional financial surprises that make it more challenging to carry as time goes on,” she warns.
Read more: What you need to know before renting out your home on Airbnb
Is now the right time to sell?
Before making a final decision, ask yourself these key questions:
● Can you afford to hold onto the property if market conditions shift?
● Would renting provide a better financial return in the long run?
● Are you making this decision based on emotions or financial strategy?
Experts suggest that selling in haste – especially in a buyer’s market – could lead to unnecessary losses. If the U.S. dollar continues to strengthen, holding onto your property might prove to be a more lucrative long-term investment.
Porter also notes that political and tariff implications are becoming increasingly relevant to property owners.
“These are conversations that I am just starting to have with clients, as these issues have come on very quickly,” she explains. “For many clients, they need to understand the long-term financial implications before deciding on a strategy, as buying a property in the U.S. is both a financial and emotional one, so they want more time to see how this will play out.”
Selling a vacation home or exiting a timeshare isn’t a decision to rush into. Take time to assess market conditions, consult financial and real estate professionals specializing in cross-border investments, and weigh your long-term financial goals. Whether you sell, rent, or hold onto your property, a strategic approach will ensure you make the best move for your financial future.
Read next: How to cancel your home insurance policy
