Is now the time to buy?

Now is the time to buy!

USD moves higher against the pound.

Just as I was talking about where to keep your rental profits only
two days ago! It seems the dollar has rallied and done us a favour.

Larry Elliot, Guardian.
"The pound fell to its lowest level against the US currency in
almost two years on expectations that the Bank of England will be
forced to cut the cost of borrowing to boost growth. A pick-up in
US industrial production also helped a resurgent dollar and pushed
down the price of oil and gold on global commodity markets.

The pound closed at $1.85 on the foreign exchanges. It is down 6.5%
since July, a move that will make it more expensive for British
holidaymakers to visit the United States but will make UK exports
cheaper to the world's biggest market.

Michael Saunders at Citigroup said: "Sterling remains vulnerable,
especially against the US dollar. The pound averaged $1.55/£ over
1993-2002 and it would not be a surprise to see a return to those
levels in the next 12-18 months."


So what does this mean for us? Well, it seems that now is a great
time to buy. There is a period of strengthening for the dollar and
who knows how long this will take, but one things for sure, its
better to have your money in dollars than in pounds regardless of
how you do it!

Good luck with all your investments

Ollie
ollie@usapropertyinvestor.co.uk
0845 438 0634

Where will you keep your rental profits?

I get asked this a lot. Should I keep my rental profits in the USA
or transfer them back home? Well, as always, this is down to your
own financial circumstances. Whether you want to rely on your new
profits in the here and now, or think of them as savings that you
can use later.

The question isn't really anything to do with cash flow. It's more
to do with the weakness of the dollar against the strength of the
pound. In essence what we're talking about is dabbling on the
FOREX (Foreign Exchange.)

Lets say the dollar remains weak against the pound for the next
five years and in that time all or most of the rental profit you
earned was left in your US account. Then something changes, the US
dollar grabs a hold and starts to climb its way back. Next thing
we know its at $1.5 to the £1. If you exchange your dollars for
pounds your profits have increased even further.

example 1: bringing profits back now. (dollar at 2 to 1)
$10,000 /2 = £5000

example 2: wait 4-5 years. (dollar at 1.5 to 1)
$10,000 /1.5 = £6,666

So, if you don't have to exchange your profit, then wait a while.


Good luck with all your investments

Ollie
ollie@usapropertyinvestor.co.uk
0845 438 0634