Amir replied on Friday, January 27, 2012 03:58 AM
@ Inflation (interesting nick by the way) and Umair NYC
I think, as most of us can probably agree, that currency value (and risk thereof) is just one of the many factors contributing the changes in prices in the real estate. However, to make things simpler to understand, generally speaking inflation (or Consumer Price Index) is what one needs to keep up with to sustain the capital value. For example, in Pakistan value needs to appreciate around 10% per year to maintain the capital value.
Euro, as you referred, is high risk currency at the moment, having a nose dive and it looks like from forecasts that this trend will continue. So, any currency could be better than euro during the next one year at least.
On the other hand, US$ has seen a reverse trend and again forecasts of 2012 indicate that 2012 will be the year of US$. Actually reverse of what we have seen in 2006 to 2008. This can be argued for days and countless analysis can go into this discussion to conclude. Essentially, we are talking about currencies market here where stakes are high and numerous factors including respective Govt. policies contribute towards to it.
For individuals, what matters is base currency of yours (most of the time the country where you live or you want to invest for future move).
I agree with Umair NYC as that's the real appreciation of real estate (beyond) currency depreciation) what we are all looking to get against our investments.
Thanks for sharing your opinions anyway. |
