If A Rising Currency Is Making Property Expensive, Try Florida Tenanted Property Instead

Florida-PropertyThe rising value of a country’s currency can make investing in overseas property more expensive, however for foreign investors with stronger currencies, Florida property is now even better value for money.

Once upon a time it was unthinkable that you could invest in property in Florida with cash. Yet this is now happening due to a combination of heavy discounts and the falling value of the dollar.

My Canadian cousin, Eric, has just bought himself an investment property in Tampa Bay for less than $50,000. He paid for it in cash and was delighted to have picked it up at a large discount on the 2008 price and also by the fact that the Canadian Dollar is one of the fastest rising currencies in the world in 2012.

He is also pleased to hear that property prices are on the rise once again in Florida as the market continues to recover and that he can enjoy income from tenants already in place.

This made this particular Florida investment an even better prospect.

He is not alone, the number of foreign investors in Florida property has grown significantly with cash investors accounting for 58% of sales made in Florida last year, there are even reports the banks are giving cash discounts to people investing in foreclosed homes in Florida.

According to the latest statistics, investors like my cousin from Canada make up 39% of overseas property investors in Florida property. This is followed by a growing number of Brazilian property investors who make up 8%.

The dollar we hear has recently weakened again against the Euro, Pound and the Yen and it has been common knowledge for most of this year that China’s rising currency may help stoke up inflation in the US and also reduce (in dollar terms) the country’s debt burden.

This is good for those controlling the national purse strings in the US and foreign investors. The former can have its debt burden reduced by inflation while foreign investors have more spending power on top of property prices that are a long way below their peak.

The rising value of currencies like those in Canada is certainly making Canadians richer and many of them are spending it either on holiday homes in the sun or investment properties where they can begin to make a profit from day one with tenanted apartments in Florida.

So far from being fearful about the rise and falls of currencies, as property investors, we should like my cousin Eric take advantage of the opportunity that is now presenting itself to investors all over the world and become a winner in the currency war.

Does a rising currency have any influence on your decision to invest? Please leave your comments below:

Kind regards

Brett Tudor
Property Expert

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