Weak Dollar And Real Estate

Comments(6)

• 
  JohnMichael4th January, 2005

  When the dollar is weak, real estate sales will normally soar!
  
  For my self when interest rates increase it allows me more opportunities as an investor due to variable rates and higher monthly payments.
  
  Since the post, depression real estate has remained stable as an average throughout the USA.
  [addsig]

• 
  dfroehm5th January, 2005

  JohnMichael:
  
  Could you elaborate on why a weak dollar would increase real estate activity?
  
  Fred

• 
  fishbowl5th January, 2005

  dfroehm,
  
  The short answer is high interest rates means higher payments for people with variable rate mortgages. This can result in more foreclosures and more people anxious to get out of their homes before that happens.
  
  The long answer would involve a discussion of the Federal Reserve Board, the Discount Rate, and of various indices that mortgage interest rates could be tied to.

• 
  namilf5th January, 2005

  Thanks for the reply John,
  
  Would you happen to know of any links for NJ Foreclosure Law? I've been reading and researching Tax Lien and Foreclosure investing and would like to know the laws for my state but I haven't been able to find any in depth web sites for NJ.
  
  Thanks, all replies welcome.

• 
  JohnMichael5th January, 2005

  Go to your state page at: http://www.njleg.state.nj.us/
  
  
  Quote:
  On 2005-01-05 11:31, namilf wrote:
  Thanks for the reply John,
  
  Would you happen to know of any links for NJ Foreclosure Law? I've been reading and researching Tax Lien and Foreclosure investing and would like to know the laws for my state but I haven't been able to find any in depth web sites for NJ.
  
  Thanks, all replies welcome.
  
  [addsig]

• 
  tbird5th January, 2005

  I think you guys are confusing a weak dollar with interest rates.
  
  A weak dollar means that our good ole greenback is worth less in relation to foreign currencies because of our fiscal policies and trade deficits.
  
  Why this sparks real estate activity is that foreign investors see our real estate as cheap in realation to their currencies, so the big money comes in and buys up office building and commercial property.
  
  But as far as the small SFH, there is little or no effect on us investors dealing in this spectrum.