Effects of the devaluation of your country's currency in the cost of real estate Business

[Setho]

While the devaluation of a currency would make it more easier for the county to import, it doesn't reflect the real economic situation and as such affects real estate.

 

[GIFTMICHAEL]

If you're country's fiat currency isn't valuable enough toatch the other country's currency value when ordering raw materials. It will really make you spend more when paying for it through your own country's Fiat currency.

 

[tyrim88]

The effect of devaluation does not only affect the real estate sector but all other sector,especially if the country fully depends on importation of products and even raw material for its industries,the price of goods and essential commodities will skyrocket and inflation will take place.

 

[Chibson]

The devaluation in a country's currency usually affects home-based investors. It really affects a lot of sectors in the country and therefore it chases investors away.

 

[Trexxxy]

Devaluation of a country's currency does not help the countries financial and business sectors especially businesses that involved importation. Devaluation tends to hurt those sectors.

 

[IamDozzy]

This is very true, a lot of real estate contractors in Nigeria usually imports raw materials needed for construction. The devaluation of the country's currency is a big blow to these contractors as prices of raw materials imported has skyrocketed and local alternatives aren't quality enough.

 

[Richard92]

The devaluation of the Naira to the Dollar has had a devastating effect on the real estate industry in Nigeria. The price of houses in Abuja, where I stay is on the rise and there are not any solution for this from the government.

Post automatically merged: Jun 9, 2021

This is my greatest grouse with the government whenever they make any policy that will not favour people. They recently devalued the currency and this is going to negatively affect the cost of items in the country.

In what country are the waiting in terms of the cost on currency of real estate I said property because of the economy and also the present post-pandemic.

 

[Ralphjoe]

In what country are the waiting in terms of the cost on currency of real estate I said property because of the economy and also the present post-pandemic.

I am talking about my country Nigeria and this is quite sure about all the sectors of the country because the current head of government in my country is so incompetent that he cannot do anything right.

 

[Bousine123]

Can't stress how true this is my friend. All I can say is that developers should find ways to make use of locally produced building materials.

 

[Toyoabasi]

The devaluation of a country's local currency has a devastating effect on the cost of real estate Business in the country. Taking Nigeria as a case study, the devaluation of the naira has some cost implications in the value chain of real estate business.
Most building contractors imports their building materials and tools from outside the country. When using the naira to buy this products abroad, it tends to shot up the price of the products as naira has become devalued which has a chain reaction to the entire cost of building a house hence resulting in expensive houses being built.
What's your thoughts on this guys and how can we remedy this? Is this also occuring in your country? How bad is it?

Devaluation in our currency would affect the real estate business adversely. Many realtors may not get to sell properties at such time. Potential buyers would be squinting at the mention of the cost price of the property.

 

[eLdavis]

The devaluation of a country's local currency has a devastating effect on the cost of real estate Business in the country. Taking Nigeria as a case study, the devaluation of the naira has some cost implications in the value chain of real estate business.
Most building contractors imports their building materials and tools from outside the country. When using the naira to buy this products abroad, it tends to shot up the price of the products as naira has become devalued which has a chain reaction to the entire cost of building a house hence resulting in expensive houses being built.
What's your thoughts on this guys and how can we remedy this? Is this also occuring in your country? How bad is it?

I am also form Nigeria, so I completely understand what you are saying here. The devaluation of our local currency has not only affected the real estate department but also every other business sector that has to do with buying and selling of goods and services from other countries. I really do not see any solution here as it has to do with the currency it self, except maybe you opt for buying these materials from countries with either the same currency value or one lesser than yours. What do you think?

 

[Mayox25]

Devaluation of a countries currency makes the manufacturIng goods of such country to be cheaper when exported. Imported materials are costly when there is devaluation of currency building materials are now costly which will impact negatively on the real estate business.

 

[Kaffyfolla]

To my own findings, the effects of currency devaluation policies on real estate depends on the country of origin of the investor.currency devaluation has a negative investment effect domestically and internationally by acting as a stealth tax or premium paid on real estate investments.I think these are the effects of currency devaluation

 

[Ononivami]

The effect of devaluation is seen in the property appreciation. If you buy a piece of land in my country this year, there is possibilities that you would make more than double the amount next year.

 

[HayKay]

Well one thing I've come to observe is that real estate is usually one of the fastest sectors to pick up in case of any of this type of eventuality. So there should be no fear when it comes to investing in real estate.

 

[Lens]

The real estate business is a very lucrative one..whether you are into buying of properties or earning commission as agents, it's definitely a good source. Devaluation would affect the realtors negatively.

 

[Sotherefore]

The effect of devaluation is seen in the property appreciation. If you buy a piece of land in my country this year, there is possibilities that you would make more than double the amount next year.

Yes that is what I wanted to say , when there is depreciation in the value of a particular country's currency there is always an increase in the price of properties and every commodities.

 

[Ononivami]

Yes that is what I wanted to say , when there is depreciation in the value of a particular country's currency there is always an increase in the price of properties and every commodities.

That's exactly the dynamics and that's how it works. Their will be large money chasing few commodities. This is exactly the point that's why I am a but skeptical about the issue of devaluation.

 

[Sotherefore]

That's exactly the dynamics and that's how it works. Their will be large money chasing few commodities. This is exactly the point that's why I am a but skeptical about the issue of devaluation.

Unfortunately the financial sectors of our country should be looking forward on how they can improve and add value to the currency of our country but instead they are not really working the right way to achieve this.

 

[Ononivami]

Unfortunately the financial sectors of our country should be looking forward on how they can improve and add value to the currency of our country but instead they are not really working the right way to achieve this.

Our currency is losing value already. The best thing is to keep ones money away from the fiat currency inorder to avoid been inflated with hyperinflation. This is basically what happens.