“Kathleen, can you explain to me why real estate is sold in Uruguay in U.S. dollars and everything else in sold in Uruguayan pesos? I’ve never really understood that. Thanks in advance for your answer!”
–Andrea L., United States
Real estate is priced in U.S. dollars in many countries because of the foreign market. In Mexico, for example, real estate is priced in dollars in tourist and expat areas…but in pesos in local areas. Real estate in Croatia is priced in euro rather than in the local currency (Croatia uses the kuna)…because buyers from the Eurozone are a big part of the property market in this country
Inflation and currency fluctuations are part of the explanation, as well. When these things are a concern in a country, the locals can opt to price their real estate in a hard currency (historically the U.S. dollar).
“Kathleen, I had the pleasure of visiting Santiago in early December 2005. The smog was almost not there. Two weeks later we returned on our way back to San Francisco and could not see the beautiful mountains. Based on that, I would say you should visit Santiago in November or early December next time.
“The pollution in this city is such a shame. I loved Santiago in every other way. The new subway system with its beautiful murals makes travel seem like a visit to an art gallery.
“Living across the bay from Oakland and Berkeley, I have experienced enough smog for anyone. It’s one of the reasons I live now in Sausalito. We get the ocean air first on its way to push the smog up against the Oakland hills. As in Santiago, it is much worse in the summer than the rest of the year.”
–Bonnie M., United States
Continue Reading: Avoiding Risk When Buying Real Estate Overseas