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Canadian Sourced Income?


Sonia

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If your source of income is Canadian dollars be very careful in planning your finances when renting or buying. The Canadian dollar is dropping and is expected to continue doing so vs US dollar. This means if paying rent in US$ your rent will change every month and likely rise. If you are buying a property priced in US$ by the time you close that house may be thousands of dollars more due to exchange rates. If one has a home for sale, priced in US $ please remember for the majority of buyers (Mexicans and some Canadians etc) your price is changing and mostly rising on an on-going basis. When this happened significantly in the past some were unable to close or decided not to do so and lost their large deposits. Our home is priced in Mexican pesos and part of our income is from Canada so we are very aware of the consequences.

saludos

Sonia

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Fortunately though, the Canadian$ vs. Mexican peso has been relatively constant so doesn't have too much impact on those of us who stay away from the US$ if it continues this way. Problem for Canadians and Mexicans both is the rapidly rising cost of goods imported from the US.

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Ezzie agree totally and we stay away from US costs, except for Amazon. :-) The US may start to raise interest rates this year. If they do many are predicting a gain of possibly 10% in the US$ making the exchange rates greater. In addition, a deal with Iran is likely and that will allow them to sell more oil lowering price of oil and lowering C$. I have been told,TD bank stated Canada is in a recession.

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Sonia

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If your source of income is Canadian dollars be very careful in planning your finances when renting or buying. The Canadian dollar is dropping and is expected to continue doing so vs US dollar. This means if paying rent in US$ your rent will change every month and likely rise. If you are buying a property priced in US$ by the time you close that house may be thousands of dollars more due to exchange rates. If one has a home for sale, priced in US $ please remember for the vast majority of buyers (mostly Mexicans and some are Canadians) your price is changing and mostly rising on an on-going basis. When this happened significantly in the past some were unable to close or decided not to do so and lost their large deposits. Our home is priced in Mexican pesos and part of our income is from Canada so we are very aware of the consequences.

saludos

Sonia

Thank you for posting this. It is quite the reality. Everything a Canadian buys, costs them about 15 to 20% more than what an American pays, due to the dropping dollar. With things aimed at the U.S. market here, that translates into a higher cost of living, all round. I have seen an instance where a purchaser paid $100,00.00 more for a house, upon closing, due to exactly what Sonia just posted.

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Your glass is half full. 10/12 years ago the CAD was what, around 60cents to the USD. Amazing how many traders, investors run to a safe haven, like the USA with it's warts and all. Like Walmart, people hate the place but "everyone" shops there. Happy 4th July

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I remember when we got 6 Pesos for a CAD now it more than double. Currencies swing and when the USD goes up most other currencies go down. Comparing my cost of living with 20 years ago its very much the same today. The USD will come down again and other currencies will rise, we are living in an unstable world and currencies are used to play dangerous games that will backfire.

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The point, though, is to be aware if you rely on Canadian or Mexican income and you are considering buying or leasing a home.... Avoid signing any contract that sets the price in US dollars. Personally, I refuse to deal with any travel agent or Dr. that quotes me prices in US dollars. This is Mexico, so I want prices in pesos, please. It is hard to budget if the price is moving.

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