When a country's economy is pegged to the dollar, which is weak now, its currency will also be weak, making property there cheaper and more attractive to buy for Brits
London, UK (PRWEB) September 14, 2007
Both the euro and the pound are trading exceptionally high against the dollar boosting tourism and real estate in the currency pegged countries.
"Over the last three years the dollar has seen a major downward turn against some of the world's major currency markets, but this has also had a positive effect on pegged currency countries that have seen renewed tourism and bullish property investment," says Tim vanDijk Project Manager for Obelisk.
"Currently trading at over US$2 to the British pound and US$1.38 against the euro, the situation creates a window of opportunity for many Arab states including Dubai, Caribbean Islands and various Latin American countries," to capitalise on the European tourist and property investment market.'
The pound and the euro can stretch much further than they did before and at the same time, the fixed rate of exchange neutralises the effect on tourism to the Caribbean from the US. This therefore means that you get more property for your money.
"When a country's economy is pegged to the dollar, which is weak now, its currency will also be weak, making property there cheaper and more attractive to buy for Brits," comments foreign currency expert James Hickman from Caxton FX. "Dubai benefits from booming infrastructure spending and tax incentives to lure businesses, so more and more people are working here and they all need somewhere to live," he says. "That's good news for investors."
The Caribbean, where many islands are pegged to the dollar, could be another good place to invest your robust pound as some areas are still emerging. Local property agent Richard Eames comments 'Obviously, you get more for your money, but the good exchange rate also attracts overseas developers keen to build hotels, infrastructure and other amenities on the Caribbean islands, all of which will aid tourism and the local economy.
Exchange rates play a major role in buying overseas property as an investment when converting from GBP or Euro to US$. Currency fluctuations can differ by up to 10%, which ultimately leads to either financial loss or gain depending on the timing of the entry into the market.
Mr. vanDijk concludes, "Highlighting the weakened dollar presents an advantage in the market, and the strong exchange rates generate the opportunity to secure property at very attractive prices. Looking for areas that have strong tourism and rental markets provides further value for money. However, the dollar will not remain weak forever and as such astute property investors making an early entry to these markets will be rewarded with a very viable and tangible asset to an overseas property portfolio."
For more information on overseas property investment and to find out about Obelisk® latest projects, contact: Obelisk® on 0808 1600670 or email firstname.lastname@example.org or visit our website http://www.obeliskinternational.com