Even if the home’s selling price did not rise over the past year, it went up in value for Europeans thanks to the money exchange rate.
ORLANDO, Fla. – April 21, 2015 – The value of the euro has fallen recently in comparison to the U.S. dollar, and that gives some Europeans an ideal opportunity to sell their Florida property and make a profit not just on values that have risen, but also on the different value of money.
The opportunity applies to Europeans who bought a property when the U.S. dollar was weaker.
A home in Central Florida illustrates the example. Even if the home’s selling price did not rise over the past year, it went up in value for Europeans thanks to the money exchange rate. If a home was worth $300,000 in May 2014, the euro exchange rate overseas was 218,000. That same house today is worth 277,777 euros, or an increase of 27 percent in slightly less than one year.
“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 with Moneycorp. “However, now it seems the tables have turned, with an 85 percent decrease in property-related transaction from the Eurozone and a steady incase in European investors listing their properties for sale.”
Source: RISMedia, March 31, 2015
© 2015 Florida Realtors® All rights reserved. Reprinted with permission.