With the record lows of the US dollar against the Euro and 30-year lows against the English pound, Europeans have a distinct advantage when it comes to buying things American. This is true for all types of items, from retail goods to real estate. Those who want to invest in property in the US are in an enviable financial situation. Unfortunately, the opposite is true for Americans who live and work in Europe. Many are having a harder time in recent months.
The weak US dollar continues to set records for its low value against many currencies, and Europeans are in the best position to take advantage of this. As of this writing (the values change regularly – please check the latest numbers), the GB pound was worth just over 2 US dollars, and 1 Euro was worth 1.44 dollars. Even Canadians are enjoying great spending across the border as the US and Canadian dollars are just about equal, something that hasn’t happened for decades.
This advantage has enabled many Europeans to enjoy trips to the US and buy many more things than they could at home. It also allows overseas investors to buy into the US property market for seemingly bargain rates. With the double advantage of properties that are priced to sell and high value for foreign currencies, it is a great time to be investing in the US market.
Several recent articles in the New York Times highlight the advantages that Europeans have when coming to the US, and the problems that Americans have when in Europe. According to several people interviewed in the Times while on a recent spending spree in New York, they were able to buy far more than they imagined possible.
Margaret Dragonette, from Liverpool, recently visited the US with several relatives. She noted that “Your money just keeps on going,” with the pound above 2 US dollars at the time of her visit. Her cousin was also amazed, saying “We had trouble spending all our money.” That’s a nice problem to have.
On the other side of the Atlantic, Americans are having the opposite reaction. Expats who are paid in dollars or whose savings are in US funds are having to scrimp and save. One American living in Paris, Susie Bond, was interviewed by the Times and noted that “Those that can hold out are holding their breath and we’re hoping for a return of the dollar, but those that can’t are going.” She and her husband are about to move to Vienna to try and stretch their pension dollars a little further.
With the exchange rates being what they are, it is a great time to be a European who wants to buy in America.
Arranging currency in advance of a major purchase abroad can help save money with adverse currency fluctuations
