While there have been periods during 2009 through 2012 in which the CAD vs USD was at parity or even higher, the current 30 year average for the Loonie is around 78 cents USD. The chart above displays CAD vs USD from 1972 to 2018. Currently we are hovering very close to the mean average for all these years.
Some will have a strategy to get into the market as soon as possible so that whatever you buy can continue to appreciate in value. While others have a wait and see attitude hoping that the Canadian dollar will go up. However with the waiting type of strategy, while you are hoping for the dollar to go up, properties are appreciating at the current rate of 5-6% on average which can negate any potential gains and/or cost you more by waiting.
The cost of living is so much less expensive down here compared to Canadian cities & towns….you have to eat, gas up the car/truck, attend sporting events, other entertainment, possibly golf, etc wherever you are. And so even when you convert over CAD to USD, you’re still close to even or possibly ahead because of the lower cost of living.
Once you decide to proceed with a purchase, it is the fluctuations while you are waiting for a sale to close on the purchase of your home that can drive you crazy. A change upward can get a buyer excited thinking that TV sets or dining room furniture for the new vacation home are paid for only to see the gains negated right before you wire the funds down to pay the balance.
For sellers that are cashing in on the currency exchange difference when selling, the waiting game until closing day can drive you crazy too.
Consider utilizing a foreign currency company or your bank to convert your money while you are waiting? It could be wise to convert $25000, $50000 or $100000 or more at a rate that you can live with rather than losing sleep worrying about it. Even if the rate goes a little higher after you converted a portion at least the rate didn’t go the other direction leaving you scrambling to make up the difference! It’s all about a comfort zone with how much you are willing to convert and how much to gamble on potential gains. A good currency exchange plan sure can reduce anxiety levels during this very exciting experience. And why pay your bank commissions that they want to earn on the exchange? I think it’s a great idea to compare what your bank is willing to charge you or give you with what a currency exchange company can do.
Search Greater Phoenix MLS Listings-Homes for sale
