Canadian dollar
After several years of heading down to the USA for a couple of months in the late winter, we have more or less decided we will not do it this year due to the poor exchange rate of the Canadian dollar....
Forum Discussion
Why would the weak Canadian dollar force Canadians to liquidate probably their best investment, US real estate? The fact that the Canadian dollar has fallen 30+% means that their US real estate investment has given them a 30% return in Canadian Dollars, even if the value of the property has remained completely flat in US dollars.
The only reason to sell is if you feel the weakness is only temporary and the Loon will soon return to a value nearer Par. You sell your $100,000 US property, collect $100,000 US, convert it to $130,000Cn and then wait for Par. Then you convert $100,000Cn to $100,000US and buy the property back. You profit $30,000Cn. The falling Loon is great for Canadian holders of US, dollar denominated assets. Any increase in expenses to travel in the US would easily be offset by the currency exchange values created from owning that US property.
The only reason to sell is if you feel the weakness is only temporary and the Loon will soon return to a value nearer Par. You sell your $100,000 US property, collect $100,000 US, convert it to $130,000Cn and then wait for Par. Then you convert $100,000Cn to $100,000US and buy the property back. You profit $30,000Cn. The falling Loon is great for Canadian holders of US, dollar denominated assets. Any increase in expenses to travel in the US would easily be offset by the currency exchange values created from owning that US property.
