Quote:
Originally Posted by John Scott
I remember back in the 80's when the Canadian dollar was very affordable to the Japanese - many Japanese bought real estate and invested in Canada back then.
Wonder how that turned out for them.. It was almost like a gold rush. ...
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That depends on when in the 80s.
In the early 80s, interest rates were very high (1981 spiked at over 20%) and the cost of borrowing put many people out of the real estate market. Towards the end of the eighties, rates had come down considerably (back down to 7% or 8%) and people could afford real estate again.
Factor that in with the fact that (in general, long term) real estate prices enjoy a healthy rise here in Canada if you're anywhere near a major center.
Since buying our house only one year ago, comparables on our street are now selling for over 10% higher than what we paid.
If someone in Japan had bought in the late 80s and was still holding that property today, it could be worth something, especially if they converted back to YEN now.
