Costa Rica Real Estate

Canadians opt for Central American Homes

Canadians opt for Central America homes


By Business Edge -
Published: 09/07/2007 - Vol. 3, No. 18


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.

posted by Coldwell Banker Costa Rica @ 1:58 PM