Currency fluctuations have a dramatic input on property investment overseas. In the U.S despite a period of dollar strengthening in the second half of 2011 it appears that we are in for a period of further weakening similar to the beginning of 2011.
(PRWEB UK) 11 May 2012
Falling unemployment and the hottest January to March since 1895 have both contributed to increased U.S spending and the signs are more than encouraging say Colordarcy.
However the US dollar remains weak and could weaken further which is proving a positive for British property investors as more and more step on to the U.S property market.
Loxley McKenzie Managing Director of http://www.colordarcy.com said, “Currency fluctuations have a dramatic input on property investment overseas. In the U.S despite a period of dollar strengthening in the second half of 2011 it appears that we are in for a period of further weakening similar to the beginning of 2011.
By contrast Europe which is still gripped by financial uncertainty has seen the euro and the pound continue to rise against the dollar. The dollar hit $1.70 to the pound in 2011 before falling back to $1.53, however there are clear signs that the dollar is declining again and If as I suspect, the dollar returns to the level it hit at the start of 2011 then it is comparable to having an extra 10% discount on any property purchase made by a UK resident.
The flipside to this is that US citizens will have to pay more for their goods and services as the price of oil increases, this situation will be compounded by those in the unfortunate position of being unable to pay their mortgages. This will inevitably push up rents as has been the case in Atlanta where rents are now 50% higher than mortgages.
Yields will also increase in the long term with property in areas like Florida now said to be 13% undervalued. With recovery in the US housing market now widely assumed to be underway, property investors holding stronger currencies can enjoy the party while the opportunity presents itself.”
Colordarcy are currently marketing one of their most successful developments to date. ‘The Courts at Bayshore’ is a gated development of two and three bedroom vaulted apartments, located at Cutler Bay, next to the Black Pointe Marina in Miami.
These apartments come to the market with tenants already in situ offering investors a net yield of between 6 – 10%. Prices start from just £56,000 and 80% of the development is already sold out. The finance equates to 70% down and then the remaining 30% is guaranteed via a non status loan.
Click here for more information on The Courts as Bayshore:
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Atlanta, Brazil, Florida, Turkey and the United Kingdom.
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