On 29 September 2021, the EUR/USD rate was 1.1680. Exactly a year later it’s broken that critical parity level and has reached 0.9655. For an American, or an investor using USD to fund a purchase, buying a €500,000 property in France today is costing them over $100,000 LESS than this time a year ago, purely on the exchange rate differential alone.
French property is therefore 17.3% cheaper for USD investors than this time last year. Many investors will want to benefit from this “dollar discount” and while US tourists are encouraged to travel due to the strong USD, the need for rental properties increases which is also favorable for property investors.
As a result of the strength of the US dollar against the EUR, the cost of living for US dollar holders has decreased in France, making it a promising time for a permanent move abroad, not only when considering the savings on a substantial purchase but also with cheaper renovation and living costs.
Sterling is currently at an all-time low against the US dollar and EUR is seeing a similar story with the US economy outperforming others. Like with sterling, the single currency has been at the mercy of the greenback for the most part and expectations are for continued weakness. Eurozone consumer confidence is low, not surprising given the challenging economic backdrop, and the ever-expanding interest rate differentials between the US and the rest of the world is a big driver towards ongoing dollar strength.
This is great news for USD investors in French property, so if you’re looking to buy a property in Paris or any corner of France, now might be the perfect opportunity.
How to make the most of your property purchase budget?
Using a reliable foreign exchange company like Moneycorp can save you thousands on fees and charges, while timing your purchase with the exchange rate can give you the opportunity to improve your budget.
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