 How to Make the Dollar Go Your Way International Living Postcards--Saturday Edition Saturday, December 11, 2004
Paris, France Dear International Living Reader,  "How can you suggest we invest overseas when the dollar is in such terrible shape? We want to buy but are holding off because of the dollar's weak state."
That's from a reader responding to last week's Saturday Edition (see The Smartest Investment You Can Make). In my opinion, the current weak state of the U.S. dollar will get worse before it gets better. Then again, I could be wrong. The only certainty is that your dollars buy less British waterfront or European beach than they did this time last year…and that this trend will continue or it won't. If your investment portfolio contains international real estate, you don't have to worry about which way the dollar is going to go--because up or down, it's going to go your way. I say this, not to tell you what you should have done…but to tell you what you should be doing. If you invest in the right type of international real estate, you can leverage your purchase in a foreign currency (generating a rental cash flow in that currency to repay your mortgage) and create a non-dollar denominated net worth for the long term. Should the dollar get stronger, you have a self-amortizing investment that doesn't affect your current dollar cash flow. Should the dollar get weaker, you will look smart to your neighbors. Meantime, you are diversified and most likely getting better returns (ignoring exchange rates) than you would in most U.S. real estate markets. The best deals around the world aren't going to wait until you are comfortable with the value of the dollar. You need to be "in the market". By that I mean that you need to be prepared…mentally, administratively, and financially…so you can act when the good deals come your way. Otherwise, someone else will take the opportunity. Lief Simon
Real Estate Editor, International Living P.S. Don't misunderstand. I'm not suggesting you should decide today to purchase an overseas property…then, without further consideration or research, proceed immediately with an investment. What I am saying is that you need to identify those markets that interest you, arrange your contacts, understand the market dynamics and prospects, research the process of purchase and the potential pitfalls…and then begin looking for a particular piece of property to buy. Having all this done for you is one of the benefits of my Global Real Estate Investor group. | 
