Investing in Parisian stone, the right way to save money l Athena Advisors15 June 2017
The dollar and pound have come a long way in a year. For property investors either side of the Atlantic, the recent exchange rate and property price evolutions can’t go unnoticed.
Relying on a weak Euro, is it safe?
Let’s focus on two currencies exchange rates. Today, £1 buys €1.43, a level not seen since 2007. Partly because of Europe recent events – Grexit fears - the Pound has taken around 0.15 off the Euro in one year. Currency swings are even better if you are buying in dollars, with around a 22% improvement on 14 months ago. As a result, dollar and british pound buyers from all over the worlds are using their growing purchasing power by investing in Paris. With the Euro forecasted to rise again, due to a progressive European recovery its appears they have no time to waste.
Is stone price really advantageous in Paris?
Comparing equivalent areas is the best way to get a clear view of the situation. When looking at beautiful neighborhoods of the capitals either side of the channel, we notice that houses price in London are on average 2 or 3 times more expensive than in Paris. Does that mean you can actually live in the Champs-Elysées and pay three times less than what you would in South Kensington? It would appear so.
The transactions reports account of this evolution:
In the Ile-de-France region professionals have registered a 6% increase in ancient building sales for the first quarter of 2015. In Paris they are 3% higher than same period last year.
At the meantime, houses and apartments’ purchases have risen by 10%, partly due to a 2% decrease in their prices this year. However the fall is forecasted to stop soon, there is there is no better time to start investing.