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Falling dollar and its affect on the U.S. market

By
Real Estate Broker/Owner with Carousel Realty of Dyer County Tn 248435000

I spent the whole day on Wednesday with a realtor/investor from California. "Mary" came to northwest Tennessee(Dyersburg-80 miles north of Memphis). Not only did she visit some properties that she and her clients have under contract, but she also wanted to look at several other commercial properties.

Mary is originally from Indonesia where most of her family members and investors still reside. She made the statement, "my family  and friends in indonesia need to invest right now in good cash flowing commercial properties in the US because of the falling dollar".

I am trying to wrap my brain around that statement but having a hard time. Can anyone help me understand the relationship of falling dollar to investments here in my area? I appreciate your input! 

Comments (7)

Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty LLC &
The falling dollar gives foreign investors more for their money when their currency is exchanged. Here in Florida we are seeing the Brits. There money is worth double.
Nov 16, 2007 02:28 AM
Peter Thompson
Downers Grove, IL
Chicago Mortgage Insight
If you are a foreign investor, because of the falling dollar real estate here is on sale. It takes less of foreign currency to buy US assetts than it did when the dollar was stronger. It is the same reason that our exports have strengthened, and why it cost more to take a vacation over seas.
Nov 16, 2007 02:34 AM
Terry Lynch
LAR Notary and Closing Services - Saint Clair Shores, MI

Mike

I'm in Detroit and being on the Canadian border we see the impact imediately. My wife and I go into Canada for dinner now and then. A year or so ago the exchange rate was $1 US to $1.50 Canadian. Now its $1Canadian to 92 cents US. Thats a huge drop and it hits everyone who buys anything made overseas.

Nov 16, 2007 02:35 AM
Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058
Sometimes have trouble sleeping at night - and according to a CSPAN interview earlier this week - the Chinese Government saw a switch in currancey rates and started taking action about 20 months ago.  I found this interesting as the drop in "Hot" markets began about 20 months ago.  It's all related.
Nov 16, 2007 02:44 AM
Lance Winslow
The Car Wash Guy - Malibu, CA
Excellent points here, yes it does make a huge difference, some people do not see the value here in the lower dollar, but for picking up the slack in the real estate supply, it is a lifesaver in many regards, so this is a really important factor and thus, your post gets a "10+" as far as I am concerned. - Lance
Dec 25, 2007 04:37 PM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Lance,

Thanks for your comments. Are you seeing foreign investors buying properties there in California?

Also, have you bought any properties in Tennessee or would you? 

Dec 27, 2007 12:55 AM
Jark Krysinski *PREC (Personal Real Estate Corporation)
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Hi Mike thanks for the great article on the US situation.  I have something interesting to pitch to you if you're interested in mutually exchanging some marketing exposure.  I've just received my I.R.E.S. Designation in July in Vancouver, BC, Canada and I noticed that you have similar designations.  I'm messaging you because I want to expand my international connections.  I'm presently building a larger network so that your listings can be featured in my city (for an international exposure), and mine can be featured by you.  Presently I have approximately 20 listings which might be of interest to you.  

Interested?  Look forward to chatting some more with you with respect to co-listing each other's properties, if you are interested in speaking further?  Cheers, Jark. 

Oct 09, 2012 07:33 PM