Time To Buy Property In America For Brits

If you’re looking to buy Property in America for either business or pleasure, ’round about now wouldn’t be a bad time to start making a move.

Since 2000, America has seen a sigfinicantly sharpe increase in property value; so big that it became “a mother of all bubbles” Sadly, the bubble has started to burst in certain parts of the country, and it’s only a matter of time before it all goes pop. House prices suffered their biggest plunge in two decades, sparking claims of a ’slow motion crash’ in America’s property market.

Here’s how sharpe the value increased:

“The crash of the housing bubble will not be pretty. Millions of people stand to lose their homes and life savings. However, it was inevitable. The bubble created a fantasy world that could not continue. At the peak of the bubble, 160,000 people a week were buying a home, most at bubble inflated prices. The longer the bubble persists, the larger the group of people who paid way too much for their home. While it is not good that so many dreams had to be ruined, the number will be even larger if the bubble deflates slowly. So I make no apologies about hoping for the hasty demise of the bubble.”

Pound Sterling Vs American Dollar
What’s even more encouraging for us Brits is that the exchange rates have sent the pound smashing through the $2 barrier to the highest level against the dollar for well over a decade. The two-dollar pound means property is cheap across the pond.

The lower the value of the dollar gets against sterling, the cheaper American properties become in real terms. A drop in the dollar’s value of only 10 cents, from $1.80 to $2 to the pound, means a real-term saving of over £5,000 on an American property valued at $100,000.

Additionally, properties in the United States are generally much larger than in the UK. Consequently, a large family home in the US will be much larger than its UK equivalent. Getting an exchange rate of $2 to £1, means that us Brits can purchase a far superior property for our money.

Purchasing a US property at today’s rates and, crucially, securing the currency price too, can mean that there is real potential to make as much profit on the currency conversion as on the property itself.

Here’s a graph showing the recent increase in the Sterling strength:

So, with the crash and the strengthening of the sterling pound, you could be taking a dip in your pool in Florida, very soon, at a bargain price.

I hate to take advantage of an unfortunate situation, but we’re talking about cheap properties, in a hot country, with a pool!! Come on…

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Chris C wrote, on Sep 19th, 2007

	There aren’t that many ‘cheap’ properties in the States right now but there are areas that have been saturated in recent years, Florida being one of them. Some people cannot sell for love or money and you’d be nuts to go and buy in a place where you can’t even rent it out for 1 month per year to sunburned tourists unless you just want an overpriced holiday home in a ghost town development. Word.
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The Property Amateur wrote, on Sep 19th, 2007

	Hey C$ There’s a property crash that’s rippling across the country at the moment. It’s only a matter of time before prices drop heavily all over the country. You don’t have to buy for the sake of letting. Buying a 2nd home in the states is always a nice option to take.
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