Why a holiday home in the US will cost more

A STRONG dollar against the pound with Donald Trump in the White House means a holiday home in America will become more expensive to buy.

Yet independent overseas property and finance specialist Simon Conn believes investors should not be put off – with top destinations such as Florida, California, Colorado and New York still offering attractive investments. He says: ‘Property in the US remains relatively good value compared to the high prices of Britain – and speculating on which way the pound will go is a dangerous game.

‘If Trump proves a flop, the dollar could fall against the pound – making homes cheaper. Those in a fixed, long-term mortgage deal will not lose out if interest rates rise while those who are not should consider a fixed rate deal now as a buffer against nasty shocks.

‘There are no early redemption penalties with US home loans so you can take out a fiveyear fix for as little as 3.5 per cent and try to pay it off early.’ Conn points out that secondhome buyers in the US need a minimum 30 per cent deposit.

But if you are able to rent out the property you will be paid in dollars – and this should be used to pay off a mortgage without you being hit by exchange rate charges.

On the flip side, wealthy Americans may find that snapping up property in Britain becomes cheaper.