The talk of London Town is the Christmas bargains on offer in stores across the shops in New York and in other cities across the USA. Surely this must mean a real estate bonanza for overseas property buyers looking for investment property overseas. The UK housing market has a shortage of homes for sale leading to constantly increasing property prices. Investors are not getting value for money in the British competitive market. Seasoned property investors know that profits are made on the purchase price and this is now become increasingly difficult. So is the US housing market going to be rescued by overseas property buyers in 2007? On the face of it looks like a certain bet, overseas buyers could potentially benefit twice with a weak dollar and lower property prices in the USA. The U.S. dollar has plunged to a 14-year low against the British pound, and the widely predicted point at which a pound is worth $2 will is very likely to arrive before the ticker tape falls in London’s Trafalgar Square on New Years eve. With the stampede of British bargain hunters hitting New York you would think that real estate must be next. Commenting about thegreat British bargain hunter Virgin Atlantic spokesman Paul Charles “Brits will always look for a bargain,and if the bargain is in New York on the back of better exchange rates, then they will take it.”.
US Housing market
It is true that today’s US housing market is a buyers market with lots of homes for sale and a lack of buyers willing to take that final step to purchase. Those who are selling property are taking chunks from their asking prices in order to clinch that seemingly rare real estate sale.
Will overseas buyers rush to the USA?
UK Overseas property buyers have been heading to Eastern Europe rushing towards cheap property in countries such as Bulgaria, Romania, Croatia and Montenegro. These new markets offer low capital expenditure and potentially high short term gains. Long Haul destinations such as Cape Verde, Brazil and South Africa have also emerged in 2006 as good places to buy property abroad offering great value for money and good potential for short term gains. Overseas property investors look at the complete economic picture before changing their investment strategy. Richard Iley senior economists at BNP Paribas in New York feels that economic outlook for the US is a little gloomy with the countries growth slowing rapidly as the housing market loses pace. The big retailers in the US have been hit; Wal-Mart and Gap have both reported lower takings and some economists have even uttered the word 'recession'.
Florida will always be attractive place to buy property.
One region that appears to be protected against the economic gloom is one that attracts a huge amount of inward investment and foreign cash . The region attracted 84 million tourists last year according to the states tourists’ board. The American society of Travel Agents reports that the number one visited tourist area in the US was Orlando. Overseas real estate buyers are mainly made up of the British and Canadians. The Brits love to buy property in Florida and have always appreciated the value for money aspect of buying a home in Florida. CEO of Homesgofast.com the overseas property web site ‘ There are bargains to be had in the sunshine state, Florida’s strong tourist industry means that in the long term Florida is a great place to buy property overseas. The highly regulated real estate industry in Florida also serves to provide overseas property buyers confidence in buying property abroad. Financing your Florida property purchase is also easier than many emerging markets that sometimes put the buyer through several hoops before making a purchase. The added attraction of the weak dollar could mean that in 2007 real estate developers and agents may need to aim their marketing towards overseas property buyers.
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Taking full advantage of currency exchange rates
If you have you eye on a condo hotel in Florida or an off-plan investment property near Disney you can use the ‘forward buying’ principle to guarantee a great exchange rate into the future. Simply put down a deposit of Sterling currency and your rate will be fixed for up to 12 months. Nick Bull of Moneycorp says “If you have decided to take the plunge and move to the States you should also have begun the arrangements for transferring your money over there. With Sterling close to its highest level for well over a decade it would be a shame to miss the chance” It is also important to understand where this position comes from. “This is a weak Dollar we are talking about, not a particularly strong pound. Its performance against the Euro, for example, has not been particularly stellar.” added Nick. Fixing your foreign exchange rate now does not mean that it is impossible for the rate to rise still further, but it does protect you from the possible strengthening of the Dollar in the coming months.
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