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Buying a rental property in Vancouver (Canada)

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  1. #11

    That risk is there but I'm also fretting the CAD will rise in my 3-5 year time line. The CAD is closely linked to oil prices.

    If property prices fall due to interest rates rising then one would assume the CAD will become more valuable.


  2. #12

    If you leverage your property, increases in the CAD will be of no benefit for the leveraged part unless you're willing to convert all your savings to CAD at the same time as when you buy the property. If you're convinced the CAD will rise and you want to realize that gain, you can just buy CAD now without being exposed to a risky real estate market.

    If you're interested in a property investment in Canada though, I'd suggest Windsor. Unemployment is down, there's lots of positive news for the auto sector, there's no property bubble or angst about Chinese money, and for the price of a house in Vancouver, you can have several houses there. When you're ready to move to Canada, you can then either sell or use the rental income to pay the mortgage on your personal property.

    HowardCoombs likes this.

  3. #13

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    Increase in CAD only benefits you if you leave Canada and use money elsewhere.


  4. #14
    Quote Originally Posted by MandM!:
    Increase in CAD only benefits you if you leave Canada and use money elsewhere.
    But a rising CAD works against me if I am to move even part of my assets back to Canada when I leave Hong Kong.
    civil_servant likes this.

  5. #15
    Quote Originally Posted by MandM!:
    Increase in CAD only benefits you if you leave Canada and use money elsewhere.
    That comment makes no sense. My left cerebral cortex is going haywire.

  6. #16

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    Quote Originally Posted by civil_servant:
    That comment makes no sense. My left cerebral cortex is going haywire.
    Next time, put a nice big himalayan salt lamp on your head when reading responses from MandM and you will find that they will make perfect sense

  7. #17

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    Blahh....

    If he moves to Canada now and transfers all funds to CAD, then doesn't matter if CAD goes up or down as everything he has is CAD based. Only makes a difference if he needs to sell CAD in the future to use outside of Canada.


  8. #18
    Quote Originally Posted by MandM!:
    Blahh....

    If he moves to Canada now and transfers all funds to CAD, then doesn't matter if CAD goes up or down as everything he has is CAD based. Only makes a difference if he needs to sell CAD in the future to use outside of Canada.
    He's not moving now, but in 3-5 years.

  9. #19

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    Ok, makes sense.


  10. #20
    Quote Originally Posted by civil_servant:
    If you leverage your property, increases in the CAD will be of no benefit for the leveraged part unless you're willing to convert all your savings to CAD at the same time as when you buy the property. If you're convinced the CAD will rise and you want to realize that gain, you can just buy CAD now without being exposed to a risky real estate market.

    If you're interested in a property investment in Canada though, I'd suggest Windsor. Unemployment is down, there's lots of positive news for the auto sector, there's no property bubble or angst about Chinese money, and for the price of a house in Vancouver, you can have several houses there. When you're ready to move to Canada, you can then either sell or use the rental income to pay the mortgage on your personal property.

    Yes, I suppose I could just remit and keep it in cash or invest in low risk securities. Yet, I would feel anxious if Vancouver property prices were to continue to rise.

    On the other hand, if I'm invested in the property market I could stomach a retreat in price given the low/zero leverage and hedging factor to upsize when I move back.

    As for Windsor, it feels too foreign to me. Between the angst of Chinese money and a Trump trade war with Canada (NAFTA, Ford's recent U turn in Mexico), I'll choose the former.