Do you consider currency movements when investing overseas?

[realdeals]

The Internet has opened up worldwide property markets with many investors now looking overseas to balance their portfolios. While prospects for individual markets may be good, do you consider currency movements when investing in overseas property? If so, how do you hedge your bets?

 

[shinystar]

Hello there!

Investment in a property may have many interests of the Investor:

1. To invest the surplus money
2. To invest now and sell later to earn the benefit over a period of time.
3. To own a property in a foreign country.

Keeping these factors in mind the currency movements of a country will matter at the time of Investment in the property and sale of the same. So I would consider knowing the economy of the country before investments and then would invest if my interests in the property are monetary. If personally I like the property and imagine it as my Dream home or a vacation home than knowing the market price at the time of purchase, and the developers of the property would be my priority.

 

[realdeals]

Under normal market conditions I would agree that currency issues are not number one on the list of priorities but recently we have seen sterling devalued by 20% against the dollar. We are not operating in normal markets at the moment.