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Is now the best time for Canadians to sell their Maui property?

canadian-currency

A strong US Dollar means it might be time sell Maui real estate holdings and convert that currency to Canadian dollars.

Are you a Canadian resident with a vacation condo or second home on Maui? If so, now might be a good time to get the ball rolling and take advantage of the US dollar or at least to get ahead on some currency research. With the current strength of the US dollar, selling your Maui property right now could return a nice profit reflecting a welcomed boost to your bottom line.

canadian-currency-chart

This currency conversion chart show exchange rates at their peak in 2011 and the current value of the Canadian dollar which equals about $0.75 USD.

See our data on South Maui condo sales

Canadians who purchased Maui property in 2011 and 2012 were buying when CAD$ was at parity with USD$. Now the USD$ has strengthened more than 25% against the CAD$ (see this custom finance chart) which means Canadians have a double incentive to sell their Maui properties…

  1. It’s more expensive for them hold their property since mortgage, monthly maintenance fees and taxes are in USD$
  2. They stand a greater chance to profit when they sell since every US Dollar they get becomes approx $1.30 CAD when they bring the money back home!

Lets look at a case example to help paint a clear picture.

Case Example: Wailea Palms

We previously wrote an article Wailea properties popular with Canadian buyers where we showed that Wailea Palms is a top choice to own if you’re visiting Maui from Canada. This Wailea condo houses a high percentage of Canadian owners, almost 24%, and there were quite a few sales in 2011 and 2012 when the Canadian dollar was at an advantage. 

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View from the community infinity pool in the Wailea Palms

Wailea Palms Unit 2705 is a nice ground floor unit with 2 bedrooms, 2 bathrooms and 1,194 square feet of living area. This unit sold in April of 2011 for $642,000 USD to a cash buyer from Calgary. The exchange rate at at the time of closing was about 1 CAD = 1.0476 USD so the buyer’s cost might have been approximately $612,829 in Canadian dollars.

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Now, let’s run this unit through our “what if” machine to see what would happen if it sold in today’s market and was converted back to Canadian dollars…

The average sales price for 2 bedroom ground floor units at Wailea Palms is above $800,000 but let’s look at it conservatively to underestimate the quote; let’s see what happens if it sold for $750,000. After commissions and other transaction expenses, the approximate net for the sale could be around $703,000. Now the interesting part, let’s see how dollars convert using current exchange rates when those funds are brought back home to Canada. As of this article, 1 USD buys you 1.3244 CAD which means that $703,000 USD would convert to over $931,000 CAD.

Disclaimer: This article does not factor details such details as HARPTA & FIRPTA withholdings or appropriate tax implications. Be sure to consult with your CPA for guidance on financial decisions.

Wailea Palms Real Estate For Sale

3150 WAILEA ALANUI DR #3507

3150 WAILEA ALANUI DR #3507
Price: $1,850,000
Beds: 2
Baths Total: 2
Sqft: 1194
Acres: 14.5
City: Kihei
State: HI
Zip: 96753

3150 WAILEA ALANUI DR #2803

3150 WAILEA ALANUI DR #2803
Price: $2,300,000
Beds: 2
Baths Total: 2
Sqft: 1692
Acres: 14.5
City: Kihei
State: HI
Zip: 96753

3150 WAILEA ALANUI DR #3306

3150 WAILEA ALANUI DR #3306
Price: $2,250,000
Beds: 2
Baths Total: 2
Sqft: 1194
Acres: 14.5
City: Kihei
State: HI
Zip: 96753

Complete inventory of Wailea Palms for sale

Contact a Maui Real Estate and Lifestyle Specialist

Ho’olei villas, we are currently the in house “Sayles” team at Ho’olei Grand Wailea

Whether you’re relocating to Maui, buying your first home, investing in real estate, or upgrading your overall well being, you could not find a better lifestyle than the one Maui offers. This island is more than just a beautiful destination, it’s home to incredible people, incredible athletes, and some of the world’s most renowned real estate. People come for the sun, but stay for the lifestyle. For more current information on Maui Real Estate, please contact to set up an appointment.

Aloha,
Anthony Sayles R(S)
808-280-6532
Anthony@DanoSayles.com

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