A French Leaseback: When the Dollar is This Strong, it’s Time to Buy France

The U.S. dollar has dramatically appreciated against all major currencies this year. This has created a window of opportunity to diversify out of the dollar.

Diversification is one of the most powerful reasons to be invested in international real estate today. If you have watched your retirement funds shrink or the world’s currencies wildly swing, you know what I’m talking about. You need diversification from U.S. markets and currency. This safe haven is not just to fund your retirement but also to allow you sleep at night.

French Leaseback: Closest Thing to a Safe Haven

The closest thing I’ve come to this “safe haven” is the French Leaseback Program. The real estate deals available as a French leaseback are always on my radar--but with the current euro/dollar exchange rate, the best of these deals become even more attractive.

For example, earlier this year, when $1 was worth 0.65 euro, a French leaseback opportunity in Montpellier had units starting at $108,000.

Today $1 buys you 0.77 euro. If you could still buy those Montpellier units, the stronger dollar means that today the same units would cost just $91,000, just based on the currency change.

But this exchange rate swing in your favor is just an added bonus. The reasons why you should consider the French Leaseback properties are strong at any time.

Buying a French leaseback offers you a guaranteed rental return (in euros)…the French government will instantly turn every $1 you invest into $1.20…and major banks will help finance your purchase irrespective of whether you are French or a foreigner.

Who Should Invest in a French Leaseback?

If you have been considering this safe haven for some time and are looking for diversification out of the dollar, now is the time to act. Purchase a French Leaseback property and you are guaranteed a tax efficient euro yield with the prospect of euro denominated capital appreciation. You need to ensure that your wealth and financial security isn’t eroded should the dollar weaken.

To get up to speed on the basics of the French Leaseback Program, see my original review of the program.

I'm preparing a detailed research report on the program for members of my Real Estate Trend Alert (learn more about how to join this group here) which I'll send out in the next few days.

Ronan McMahon
Executive Director, Pathfinder Ltd.