Strong Canadian Dollar Makes Costa Rica Real Estate a Bargain

Harsh winters in Canada have encouraged many snow birds to seek warmer winters in Costa Rica.

In fact, in our tranquil town of Atenas I would estimate that about 40% of the expats who reside here are Canadians, many of which have been here long before the first Americans discovered the charm of Atenas.

Over the past two years, significantly less Canadians have purchased real estate here compared to Americans. This may have been due to an unfavorable exchange rate for the Canadian dollar.

However, Bloomberg reported Saturday that the Canadian dollar has recently surpassed the 1-to-1 ratio with the U.S. dollar for the first time since 2008.

“The Canadian currency rose the most in two months against the U.S. dollar this week after two straight weekly declines. The loonie, as the currency is known for the image of the waterfowl on the C$1 coin, gained against most of its major counterparts as oil, the nation’s largest export, reached a two-year high.

…The Canadian dollar appreciated 1.4 percent to 98.73 cents per U.S. dollar in Toronto, from C$1.0013 cents Jan. 28. The currency yesterday touched 98.32 cents, the strongest level since May 29, 2008. One Canadian dollar buys $1.0129.”

Since most real estate in Costa Rica is priced in U.S dollars, Canadians are profoundly affected by the exchange rate. In March 2009, the Canadian dollar was significantly weaker as it took over 1.30 Canadian dollars to buy one U.S. dollar.

Although many average folks don’t normally consider the ramifications of this exchange rate on an everyday basis, those looking to purchase foreign assets like retirement or winter homes in Costa Rica would be wise to buy when conditions are optimal.

For example, if a Canadian bought a $300,000 home in Costa Rica (priced in U.S dollars) in March 2009, they would have effectively paid 390,000 Canadian dollars. That same purchase made today would cost around $295,500 Canadian.

That is a massive real world savings for Canadians of $94,500. Given the favorable exchange rate, Canadians who have been considering leaving the snowy winters for the near-perfect year-round weather in Costa Rica would be wise to take advantage now.

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For more information about homes and land for sale in the Atenas area, please contact our Recommended Realtors in Atenas by using the simple form below:

Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.