Chile Forum

I'm going to be selling my house in Canada and becoming an expat in Santiago for a couple of years with my company. I will most likely then head back to Canada and purchase another house. I just want to know where I can park my money from the sale of my current home? Are there GIC's in Chile? if so what are the rates (Google search did not help me). They must be called something else. I don't want to invest in the market right now because I will need the money in about 2 years.

Any suggestions?

Chigu wrote:I'm going to be selling my house in Canada and becoming an expat in Santiago for a couple of years with my company. I will most likely then head back to Canada and purchase another house. I just want to know where I can park my money from the sale of my current home? Are there GIC's in Chile? if so what are the rates (Google search did not help me). They must be called something else. I don't want to invest in the market right now because I will need the money in about 2 years.

Any suggestions?

sure... 1st of all - ain't nuttin' "safe" these daze?


g~j sold their last house in canukistan back in '05
we invested contrarian-wise - (we do like certain commodities!)
we probably made 200-250% since then (over 6 years)
hint - it was NOT in canuk GIC's or bonds
so, park any funds where you want...?
(assuming IF you could transfer hundreds of thousands of cdn$$$ to chilean gic's - NOT!)
and even if pathetic cdn ZIRP will yield negative numbers (after inflation) over 2 yrs...
caveat freak'n emptor!

so, why sell? - why not just rent out your shack?
especially if you own it...?
or if any rental income pays the mortgage...
and any capital gains can be tax-deductible?
assuming - as you state - you will repatriate in 2 yrs?
seems you had better think about this carefully -
before you jump into any potential sale?
(unless, of course, you don't like your local 'hood...?)

Thanks for the info. We still have a mortgage on the house, but we live in the suburbs of Toronto (east toronto), and rental homes aren't really that much in demand. Also, nobody will be there to do the maintenance assuming we can get a renter. Also, this was our first home, and we were planning on moving in the next 2-3 years anyway closer into the city anyway. This move just expedites the eventual home sale. Also, the outlook for housing prices next year and beyond in Toronto don't seem great, and all indications are pointing to a slight correction.

Since I dont' plan on being in that house long-term, I'd rather get out now, and park my money safely for 2 years (maybe take 10-20k to gamble on the market). I just wanted to know if there were any alternatives to Canadian GIC's. Which really do pay almost nothing.

Chigu wrote:I'm going to be selling my house in Canada and becoming an expat in Santiago for a couple of years with my company. I will most likely then head back to Canada and purchase another house. I just want to know where I can park my money from the sale of my current home? Are there GIC's in Chile? if so what are the rates (Google search did not help me). They must be called something else. I don't want to invest in the market right now because I will need the money in about 2 years.

Any suggestions?

Think it through, leave it in a GIC in Canada, why move it to Chile if you don't need to, then move it back to Canada and may be taxed on bringing it back?? If you don’t trust Canadian Banks you have a deeper problem. If you need to be near your money, well then carry on.

I 100% trust the banking system in Canada! I just thought that I may be able to get better "GIC" rates down in Chile. My original plan is to put it into a 2 year GIC here.

Chigu wrote:I 100% trust the banking system in Canada! I just thought that I may be able to get better "GIC" rates down in Chile. My original plan is to put it into a 2 year GIC here.

Do it.

GIC in Canada all the way. The idea of removing your money from Canada and bringing it to invest in Chile is the worst idea ever. If you want your money to be more liquid just open a Canadian ING account and park it there. The rates are practically the same as the GIC these days.

Also, take advantage if you haven't already with the tax free savings account, it will add another half point of interest to your growth. If you haven't utilized a tax free savings account then you can deposit a full 15k (5k for each year since its inception) and get the higher rate on all of it. If you are married then you can stick another 15k in your spouses name and get a higher rate on 30k all tax free.

Long story short - don't bring your money here! Leave it in Canada where it is safe.

Yes, don't forget that you'll lose a minimum of 1.5% (easily twice that at many banks) each way on the currency conversion. Plus any wire fees. How much do you expect to get back in 2 years on top of that 3-6%+ loss?

James.