Falling Dollar Strengthens Foreign Property Investors

Falling Dollar Strengthens The Ability Of Foreign Investors To Buy Property As Local Buyers Look On In Fear

As the Australian dollar hits a record low in a seven year period, there are fears that property investors within the country may face challenges. The Australian dollar that presently exchanges at 69.3c US dollar is expected to further fall. This has huge implications for local investors in property that will have to be competing with foreign investors. As a direct response to the falling Australian dollar, the executive director of the Australian Retail Traders Association has advised that homeowners will be better off if they can make some useful purchases for their homes now before the dollar weakens any further.

Falling Dollar Strengthens Foreign Property Investors

It is not surprising that foreign investors will see this fall in dollar as an opportunity to make better deals. It is actually expected that more Chinese investors would come in to invest in property in Australia. As the Chinese have seen growth in their wealth, they are constantly on the lookout for relatively cheap property to buy. Australia has been a safe haven for such investments but the present situation with the falling dollar makes the property market in Australia even more attractive for foreign investors.

There are two main reasons why the Chinese will continually look towards Australia for property investment at least for the time being. The Australian dollar has weakened against the yuan. This has increased the buying power of those having yuan. Also, the Chinese property market is still unstable and most Chinese are not interested in investing in it. As such, the booming property market in Australia and now the added advantage that comes with currency conversion makes buying [property in Australia an interesting investment for most foreign investors.

Falling Dollar Strengthens Foreign Property Investors

While it is understandable why some local property investors may look on in fear as the dollar drops and opens up more opportunities for foreign buyers to come in, there is really no need for the average Australian home buyer to worry. This is because of some of the following truths;

  • Foreign investors are most often interested in highly priced properties that the average Australian will never bother to look at.
  • New migrants that are wealthy will only buy property in very rich neighborhoods so the average Australian should not be threatened by them.
  • Since most of the foreign investors who are based out of the country are mostly invested in new properties, any competition with the locals will be in the new property area.
  • Australian should avoid prejudice. Not every buyer who looks like an Asian is foreign investors. Most of them are Australians with some Asian ancestry.

Finally, although the dollar may be falling, it comes with its own advantages. There will always be competition whether the dollar is rising or falling. What is important is knowing what you can afford and working with a good real estate agent to find it,Falling Dollar Strengthens Foreign Property Investors does not mean opportunity for locals is gone. Also, this is the time to start thinking out of the box when it comes to buying property.

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Dave Peterson

Dave Peterson Passion for adventure and sharing his life long journey with as many others as possible. "What lies behind us and what lies before us are tiny matters compared to what lies within us." HENRY S. HASKINS

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