Money transfers could pick up US property

Money transfers to the US could be important for people looking to purchase property in the region.

According to Paul Collins, editor at the Buy Association, the property market is still trending "gradually downwards".

He added: "Now is potentially a very good time to buy if you get the right kind of deal."

However, the weak foreign exchange rate for the sterling means that getting a good deal on a money transfer to the US is essential in order to maintain any savings.

This afternoon (June 8th), the pound was trading against the dollar at $1.65 at 14:30 BST.

Meanwhile, recent figures from the Joint Center for Housing Studies suggest that the foreclosure wave in the US is "still cresting".

The data showed that homeownership in the US dipped below 67 per cent last year, down from 69 per cent in 2004.

According to the centre, would-be buyers are still waiting for prices to firm so ownership looks likely to continue to decline this year.

Mr Collins added that short-term investment in the US is not advisable. He remarked: "If you are investing in a property in the US - and there are many reasons to do so – you are looking at a medium to long-term investment which, if you are looking over those periods of time, could prove to be a very profitable investment."

Sterling's foreign exchange rate against the euro has also suffered recently, dropping to £0.90 per euro.

The drop in the foreign exchange rate was largely due to the fact that Moody's rating agency has warned of a risk to the UK's top-notch debt ratings if weak economic growth continues to hamper plans to lower the budget deficit.

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Posted by Eleanor Ward