French property prices rose 3.8 percent last year, according to a report issued by the Federation Nationale des Agents Immobiliers et Mandataires (FNAIM), France's version of the National Board of Realtors. Although the report takes a rather gloomy view, this all sounds pretty good to me with what's going on in the real estate market throughout much of the United States. And the report, of course, doesn't take into account the falling U.S. dollar.
A house purchased for the equivalent of $200,000 in August 2007 at an exchange rate of 1.37 Euros to the dollar would be worth roughly $19,000 more today, five months later, at an exchange rate of 1.46 Euros to the dollar. And that's if you sold it for the exact same price you paid -- and before adding in the non-financial benefits of life in France.
Although exchange rates fluctuate, the dollar has been losing value for a very long time. Overseas real estate in the Euro, whether in France or elsewhere seems a very good hedge. And the FNAIM report makes that clear.
No comments:
Post a Comment