The recent dip in the euro’s trading rate has seen European investors rush to put their U.S. property on the market in order to cash in on favorable trading rates.
Moneycorp, the international payments specialist, saw a dramatic change in the value of the euro against the dollar throughout 2014 and into 2015. The markets revealed a drop from a high of 1.39 to a low of 1.05 in the space of 12 months.
These fluctuations have created some great opportunities for European investors considering the sale of any U.S. real estate. Due to currency movements, U.S. real estate is selling for around €30,000 more per $100,000 than it was last year.
These gains are clearly illustrated when we compare the euro-value of U.S. property year on year. For example, a property valued at $300,000 in central Florida, an area very popular with European buyers, would have sold for the equivalent of €218,000 in May 2014. However, with recent fluctuations in the rate, this same property would now sell for €277,777. This creates a gain of over €59,777.
“We saw an influx of Europeans investing in the U.S. at various points throughout 2014 as they took advantage of the weak dollar,” says Kelly Cutchin, Country Manager – USA, Moneycorp. “However, now it seems the tables have turned, with an 85 percent decrease in property-related transactions from the Eurozone and a steady increase in European investors listing their properties for sale.
“The increased euro-value of U.S. property gives Europeans the ability to make a large return on their investment if they sell now. It’s great to see so many investors recognizing the opportunity the current market conditions provide.”
For more information, visit http://www.moneycorp.com/usa/.
