Strong loonie drives sales of homes in Central America
Business Edge, September 07, 2007
Canadians are flocking to Central America for second homes thanks to a strong currency, tax
benefits and lifestyle gains, according to a new poll.
HiFX, a provider of foreign exchange services, surveyed more than 100 agents in Mexico,
Nicaragua and Costa Rica. The survey results show nearly 30 per cent of all real estate clients in
these regions are Canadian.
Broken out by country, more than 32 per cent of the clients purchasing in Mexico are Canadian,
as are 27 per cent of clients purchasing in Nicaragua and 26 per cent in Costa Rica.
"The strength of the Canadian dollar is making purchases in Central America increasingly
attractive, and meanwhile you are in some of the most naturally beautiful regions of the world,"
said Ward Naughton, president of HiFX.
Investors should plan carefully and consider the currency risks associated with buying a property
abroad, cautions HiFX.
For example, says the company, if a buyer had considered purchasing a property in Mexico
priced at US$500,000 at the beginning of January 2007, it would have cost Cdn$592,000. But if
that same property had been purchased seven months later, it would only have cost
Cdn$528,000, an 11-per-cent discount due to currency fluctuations.