Strong Dollar having effect on Some Foreign Owners of U.S. Real Estate
The euro has fallen dramatically recently in comparison to the U.S. dollar, and it may have a definite effect on some European owners of Real Estate here in Florida. Some Europeans may be in a position to profit significantly on the sale of the home, because prices have risen over time, and also on the money exchange rate - effecting a double dipping type of profit. A couple of things play into the scenario, depending on when they bought the property - possibly when the euro was stronger than the U.S. dollar and if the price rose enough.
Here's an example of a home in Florida, even if the selling price did not rise over the past year, it went up in value for Europeans because of the money exchange rate. If a home was worth $300K in May 2014 the euro exchange rate overseas was $218K. That same house today is worth $277K euros or an increase of 27% on slightly less than a year.
During 2014 there was quite a lot of Europeans investing in Florida Real Estate, taking advantage of the weak dollar according to Kelly Cutchin with Moneycorp. Now in the current time there is a decrease in Europeans buying property here - possibly as much of a 85% decrease. Now, the Europeans are listing their property for sale to take advantage of the "switching of the tables" in the money exchange arena.
After all, Real Estate is an item of value and it's just like a commodity any more. Don't get emotionally attached, watch the numbers - make a decision - make a profit - move on to the next move on the money making chess game of life.
Some Information for this article derived from: RISMedia, March 31st, 2015