Weak Dollar, Strong Real Estate Opportunities

Read more about overseas real estate in International Living Postcards--your daily escape

Tuesday, Sept. 25, 2007
London, England

The dollar situation is looking gloomy at the moment with the euro trading at $1.41 dollars. But there is always a sunny side…I worked the British economic crisis (in the 1970s) to my advantage, pocketing a fortune by jumping on the property wagon.

In 1970 I moved to London and purchased a property. A year later with both my California and London homes secured I made the move to Hong Kong where I found my third dwelling.

It was a time of great inflation and I watched my California and Hong Kong homes appreciate greatly. However, in 1976, I noticed that the London real estate prices were about the same as they had been in 1970. At this time, the British pound collapsed suddenly (by 35%) and was now worth $1.52 dollars. London houses, (which I thought were already very cheap by world standards) just became 35% cheaper.

I couldn't resist scouting for more property and eventually bought an old house (with five bedrooms) in Bedford Park, west London. I converted $15,200 to make a £10,000 (pounds sterling) down payment and took a £25,000 loan to meet the £35,000 ($53,200) asking price.

A couple of years later, the pound rose and I sold my London house at a huge profit.

London property had been under priced. I was able to sell the house for £115,000, making a profit of £80,000. The pound had risen from $1.52 dollars per pound back to over $2.20. My £80,000 profit was no longer worth $121,600 (value at the 1.52 rate) but $176,000. I earned $54,400 extra profit because of currency moves.
 
International travelers who keep a look out for property price contrast can find that their global travels cost nothing compared to the fortunes they create from real estate opportunity.

Gary Scott,
For International Living

Editor's Note: Gary Scott has been a contributing editor for International Living for over 20 years. He is an entrepreneur, author, and investment advisor. Gary bravely recommended international diversification for the small investor 25 years ago. At first, people thought he was crazy…but then saw the profits he yielded. Ted Nicholas, one of America's best selling self-publishers and foremost entrepreneurs, wrote of Gary Scott, "Gary's investment tips have probably helped more investors get rich than any advisor in the world." To find out more about Gary Scott's wise investments click here.

Related articles:

- I Don't Care if They Are Giving it Away--Where's My Profit?

- Beware the markets of the Wild West

- I found your home in the sun and it's less than $100,000

Related events:

- For information on the hottest areas to invest join our experienced team at the Ultimate Event, Panama City, October 24-27, 2007