The US dollar is strong right now, especially against the Euro (EUR). Currently, 1 USD is worth 1 EUR; whereas one year ago and previously, the EUR was worth around 30% more.
A big part of the reason for this is the Federal Reserve putting up interest rates. This has some worried the recession will worsen, but it also has the immediate effect of pumping up the USD’s value.
Despite the high inflation, the USD is currently very strong, as the Fed put up rates faster than other countries, including the EU.
Part of the effect of this is Americans are now snapping up properties in France, Italy, and various other European nations to capitalize on the great returns.
Snapping Up Properties In Italy and France
In particular, Americans have been buying up some nice properties in places like Paris, France, Tuscany, Lake Como in Italy, and chic areas of London, UK.
Let’s not forget about the romantic beauty of Provence, where Americans have also been shelling out for some prime real estate. Americans are buying these homes to vacation, but also, in some cases, moving to Europe as well.
Considering the USD has risen by over 15% and reached parity several months ago, it’s the perfect time for the Yankees to set their sights on Old Europe.
For others, these properties are more so investments that they plan to rent out, renovate, or turn into tourist properties to make money from.
This includes other countries, such as Portugal and the UK, where the dollar is also strong against the British pound (GBP).
Enjoying Lake Como. But should be renamed LA Como with the amount off Americans here 😂 pic.twitter.com/DSrwR9Dgau
— Smudge MTB 🏴 (@mtbbatteries) June 23, 2022
Welcome to Lake Como, Italy
Lake Como, famous for having the homes of people like movie star George Clooney, has become well known for also being the site of many incoming American buyers.
Some are even joking that it should be called LA Como, considering how many people are snapping up property there.
There’s no doubt this influx of powerful USDs is beneficial to the local businesses in these areas and to the property market; although it also has the potential to price out many Europeans from buying.
The irony is Americans back home are dealing with record inflation and soaring prices; while some on the upper end of the scale are able to benefit from the false inflation, due to the interest rate’s empowerment of the dollar.
Many of the locations where Americans are focusing their buying, including Lisbon, Portugal, and Tuscany, Italy, have also had fairly stable markets, which haven’t seen a big growth in prices. This encouraged even more Americans to buy while the getting is good.
italian restaurants next to lake como when they see americans coming pic.twitter.com/jLGlRNmcxV
— auro (@4463waystar) July 24, 2022
The Bottom Line
Some wealthier Americans have found a silver lining in our current crisis. You can’t blame them for taking advantage of it.
This article appeared in StatesmanPost and has been published here with permission.