Foreign exchange fluctuations are affected by many factors, including monetary policy, inflation, consumer confidence, GDP dynamics and balance of payments. Usually, property prices increase and yields fall (and or vice versa) every time a currency strengthens.
Currency devaluation provides foreign property buyers with interesting opportunities
Such conditions may prompt extraordinary demand or even modify the stage industry is a if foreign investor presence is powerful. However, a poor currency where the rentals are located poses risks for international landlords because this reduces rental income. Such as, in accordance with the Financial Times, in June 2016, the pound hit a 31-year low against the dollar following a announcement from the United Kingdom’s decision to exit countries in europe (EU). This decline alone boosted the purchasing power of people that have dollar-denominated incomes by 11 percent.
When a currency grows, it’s better for international investors selling but not buy property
Property maintenance may become too pricey in cases like this. Such as, in 2014