Is there a silver lining for the loonie?
We’re nearing the end of January, and so far 2016 has not been kind to Canadians. Gas is trading at less than $30 a barrel, the men’s junior hockey team will not be going to the semis, and the loonie is at a 15 year low and predicted to drop even lower. From a general consumer standpoint, when compared to the greenback, the loonie is a lightweight in a heavyweight bout. Other than a decrease in cross-border shopping and maybe plans to vacation in Florida be thwarted, how does the loonie impact Canadians?
Foreign investment in Canada’s real estate market is nothing new, but the current state of the loonie will boost interest even further. There are already dedicated business developers who hold overseas conferences that boast the benefits of buying Canadian property. With the strength of the American dollar, we can expect the demand for Canadian vacation properties to rise. Although potential homebuyers in Toronto are feeling the strain of affordability creeping further out of reach, there is good news for those who have already invested in the real estate market. If you currently own investment property and have toyed with the idea of selling in the past, 2016 is the perfect time to capitalize on higher sales prices.
There is also good news for industries like the tourism, film and manufacturing. Travelling to Canada has not been this affordable in years, which makes major cities very appealing to American tourists. Furthermore, filmmakers will be coming in droves, transforming our city streets into T.V. and movie sets — giving an opportunity for stargazers to catch a glimpse of their favourite actors, as well as local economies who will profit from the increased interest. Provinces that relied on oil can look forward to a rise in demand for Canadian manufactured goods. Growth in Canadian exports can boost employment for Canadians in mid-west provinces, which is something to look forward to this year.