- April 5, 2014 at 9:15 am #57984
Due to speculation that the ECB/s Bertorelli Dragi will be seduced into QE the Euro has been slipping against the $. With inflation shrinking towards zero even the Bundesbank stalwarts remind you that Jean Claud Trichet always said ‘the needle in our compass is close to 2%’! Well the great thing I liked this winter in Canarias away from Spa in the very busy or Scandinavian enclaves was stable prices with some excellent bargains and paid with a UK credit card at financial rate no commission 1.20 euro to the £ is good value to say the least. The £ in recent days has been shadowing the $ upwards against the euro. That’s good for buyers of property -but pay your money only to a lawyers client account with a well scrutinised contract-an estate agent -a bag of mangos will do -they can get their commission from the vendor.
- April 6, 2014 at 8:51 am #119394
Pt, when we bought Spanish property years ago Spain had recently left the Peseta to join the Euro and we bought Spanish property then at 1.64 euros to the pound. It was a really good exchange rate for eating out, shopping, everyday expenses, and seemed good for property purchases then although they were priced much higher.
Because of that almost privileged exchange rate we have never forgotten that, and whilst 1.20 seems the norm now, I can’t get my head round that being a good rate. I think I could accept a rate of 1.40-1.50 being good, but whether that will happen or not remains to be seen 🙄
- April 6, 2014 at 9:47 am #119395
That rate was good Angie as were peseta rates over 200 ! Mind you I think to be precise one would need to compare the price levels in both countries at different times and also at times in the future -the value of sterling will for this and other reasons be higher or lower than now and varying with different currencies at the same time… Food prices are astronomical here now but I found cheaper in Canaries as well as eating out. Also house prices are higher here but have been falling in Spain. Do you think we will see 1.60 again -I think 80-90 cents more likely but if ECB do a lot of QE maybe we will survive at parity perhaps. Then we have the issues of Scotland and EU referendums and how much longer will the UK property boom last and the balance of payments deficit is growing. I think of the days you got off the train at Port Bou andcould have have a nice café con leche in the station for 7 pesetas a train journey to Girona for 22 and ten days pension half board for 1800 with a rate of 164 . Those were the days !
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