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Dollar weakness good news for buyers - 29 November 2006

As the US Dollar continues to lose ground against the Euro and Sterling, and British Christmas shoppers flock stateside to bag bargains in the stores, now is the perfect time to buy property in your favourite destination Stateside.

Combined with advantageous house prices in the face of a slowdown in the number of domestic property transactions, the weakness of the Dollar is making property prices seem even cheaper than they were.

Foreign currency specialists Moneycorp predict that we may well see the exchange rate hit $2 to ₤1 in the coming months, a symbolic barrier and the highest exchange rate in many years. Even if you are not looking to buy immediately, you can still take advantage of the startlingly good currency conditions.

If you have you eye on a particular off-plan property, or just know you want to buy in the States and what you budget is, you can user the ‘forward buying’ principle to guarantee a great exchange rate into the future. 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. It also has the advantage of making sure you know exactly how much your property will cost when you come to finalise your purchase in the future.

 

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