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Foreign investment could help shore up US real estate market

AlfredSokol said: "The dollar is so low that foreigners can buy American assets [url=http://www.msnbc.msn.com/id/21739273/]cheaper than before[/url], including houses for investment. Since the US housing market has always gained in the long run, this probably wil happen. [quote] As the housing market has plummeted, the dollar has also sunk to record lows compared to other currencies, such as the euro, meaning more spendable cash in the U.S. "The dollar is on sale," said Susan Wachter, a professor of real estate at the Wharton School at the University of Pennsylvania. Today, a foreign buyer would need only 34,100 euros to make a $50,000 down payment on a house. At the beginning of the year, the same buyer would have needed 37,920 euros to make the same down payment. The influx of foreign investors can help set a floor for the real estate market, Green said. Because lending guidelines have been so restricted in recent months due to rising delinquencies and defaults, it is more difficult for U.S. customers to get a home loan. First-time homebuyers are especially being squeezed right now, Green said, and that is where the foreigners can provide support.[/quote] This could be a benefit of the low dollar."

Heather said: "It makes a lot of sense. The lower dollar is going to make real estate (and other goods) a lot cheaper for those that have foreign cash. Perhaps that is part of the plan to re-stimulate our economy with an influx of Euros, etc."