When we are talking about the large sums involved in property investing, currency fluctuations can make a big difference to the price you pay
(PRWEB UK) 14 April 2012
After a period of dollar strengthening in the second half of last year, indications are that we are heading into another period of weakness similar to the first half of 2011 according to analysts at Colordarcy.com.
Despite the obvious problems in Europe, the euro and sterling are continuing to rise against the dollar which means good news for investors for the following reasons according to Colordarcy.com.
Investors Get More For Their Money...
The most obvious benefit of this to anyone who deals in strong currencies is that they will get more for their money in the USA and that of course includes property. Loxley McKenzie, Managing Director of Colordarcy.com said, “When we are talking about the large sums involved in property investing, currency fluctuations can make a big difference to the price you pay.”
The dollar hit nearly $1.70 to the pound in 2011 before falling back to $1.53, however there are clear signs that the value of the dollar is again declining this year. If the dollar returns to the level it hit at the start of 2011 then this would be like having an extra 10% discount on a property.
This will only improve the situation for investors entering a market where house prices have also fallen 20% to their lowest levels since 2004 in some US states including Florida and cities like Atlanta. This is to the point where experts at Colordarcy.com say that these markets are undervalued.
Investors Get More Value For Money...
If an investor happens to be considering buying a property in Florida, there has probably never been a better time to invest with foreign tourism likely to increase due to the value for money they would be getting over more expensive holiday destinations elsewhere.
Investors Get Property That Pays For Itself...
Of course there is a flipside to all this good news. US citizens will be having 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 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 should enjoy the party while the opportunity presents itself.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide.
The 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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