I have several Canadian clients who are in the process of closing upon some Mexico Real Estate properties here in the Quintana Roo area Over the past 60 days, “the foreign currency markets have been extemely volatile” goes without saying Several Mexico home buyers from Canada and US have written asking how this will be affecting their closing and final payment obligations So, how does the Canadian dollar fluctuations affect the purchase process down in the Cancun real estate market or even a property up in Baja California
To be brief in the explaination Prices of Mexico properties listed within markets with a high concentration of international buyers are normally quoted in United States DollarsWhy is this The reason is that normally the USD gains in strength against the Mexican peso Although the gains in the past 8 years have been quite stable, most Mexico home owners feel safer in quoting in the more affluentAmerican currency So, Canadians buying here in Mexico, when making deposits, must pay the equivalent of a price quoted in USD Now a little history: in the fall of 2007, the Canadian dollar had gained important strength against the United States dollar to a record level Where as before, the exchange rate was hovering around $1.00 Canadian dollar per every $.65 – $.70 USD, within a short time span of several weeks $1.00 Canadian Dollar could then buy $1.05 usd This was an increase of nearly 30% which many people of this country took advantage and investd into Mexican Oceanfront properties or similar assets Recently though, within the past 30 days, the Candians lost a good percentage of this gain as it returned to near $.75USD In the past day, the Canadian dollar began gaining back ground when a surge from $.7680 upto $.8100 against the green back was registered Nathan Barcic, senior business development at HiFx Inc.stated “this move alone of 7% can save Canadians nearly $6750 CAD per every $100,000 CAD investment” HiFX Inc. has several tools that are quite interesting for people investing into latin american or even international countries such as “lock in rates” for upto 60 days or soFeel free to call me if you want to discuss this topic further or if you have any other questions regarding How to buy Real Estate in Mexico.
Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. A Mexican Certified Realtor he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company`s web site www.TOPmexicorealestate.com
