March 17, 2009

Buying a Home: Limiting Exchange Rate Exposure

Strategies for reducing exchange rate exposure when purchasing Canadian real estate

Yesterday, we looked briefly at one of the risks involved when you purchase Canadian real estate: currency exchange rate. When you buy Whistler real estate, there is a chance that you could pay more, depending on the exchange rate. Your payments may even increase as the advantage changes. Here are three strategies you can employ to help you limit your exposure to exchange rate changes:

Buying spot currency. You have two days to buy the currency at an agreed-upon rate. You make an immediate purchase and use spot currency to pay for it.
Lock into an exchange rate with a forward.
In this strategy, you lock in a particular exchange rate. A forward is good for up to two years.
Regular payments abroad. This is often the most practical choice for many buying Canadian real estate. You fix a competitive exchange rate -- or even fix a definite payment -- that is good for up to two years.

Consult a professional before making a decision, however. You need to be sure that you are doing what's best for you, and that you are using professional advice.


	The Importance of Understanding Exchange Rate
	Purchasing Canadian or other foreign real estate
	http://skiresortmarkets.com/public/item/228775

Topic Tags: buying home, Canadian real estate, exchange rate, exchange rate exposure, ski resort real estate, spot currency, Whistler real estate

by Ski Resort Markets

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