The tumble of the United Kingdom (UK) Sterling pound during 2008 has had one unusual benefit: it has actually helped boister the struggling UK property market. The reason for this is that investors from non British countries such as Continental Europe or the United States are suddenly seeing property in the UK as a potentially good investment.
Property in the UK is presently attractive to overseas investors since property prices have decreased and the exchange rate has moved to help make the investments more appealing.
It is very important for investors to clearly understand exchange rate risk before investing. One way of helping to manage exchange rate risk is for the investor to take out the mortgage in the same currency as the asset (property) being invested in.
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