The global financial crisis has not treated the normally expensive island nation favorably, to say the least. However, there are opportunities in the current situation and the considerable devaluation of the local currency has created rates that are extremely favorable for tourists and serious investors.
Many contractors and property- and automobile owners have been forced to raise cash fast as a result of the crisis and this has created some fantastic opportunities for buyers who can raise a deposit from their own funds. For those who want to travel to Iceland to enjoy the unique nature and explore investment opportunities at the same time one option is to take advantage of the over-abundance of cottages in Iceland that are for sale and rent at very reasonable prices. A new website for english speaking audiences, IcelandForSale.com, has been opened to help facilitate the buying and selling of properties, automobiles, heavy equipment and other assets at exceptional discounts.
The current exchange rate means that your purchasing power is over 70% better than it was 1 year ago. Foreign investors are buying cars and real estate left and right. Auto loan companies are reclaiming cars and heavy equipment and shipping them to other countries for sale. Foreign currency loans for properties in Iceland have more than doubled while property values have plummeted by as much as 30 percent forcing some desperate homeowners to pay black-hat dealers up to USD 25.000 to relieve them of their loans and mortgages so they can make a fresh start. They use disposable LLCs to buy the houses, pocket the money and allow the companies to go bankrupt.
Ten days after the króna plummeted, Iceland’s tourist board, airlines and tour operators launched a coordinated campaign of low fares and airfare-hotel packages to lure Americans. Signs in the airport welcomed arrivals to Half-priceland.