- This topic has 7 replies, 6 voices, and was last updated 11 years, 10 months ago by
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As Sterling seems to be falling even further against the Euro, now down to 1.12-1.14, buying Eurozone property including, in Spain, is looking less attractive.
In effect, if you do decide to buy, you need to negotatiate larger discounts than 40%-50%.
Even then, you are not getting real bargains in Sterling terms. With current price reductions, it’s hardly different to when rates were 1.47-1.64 to the pound some years ago, and remember if the rate flips back to 1.40+ to the pound, you will miss out again if wishing to convert back to Sterling, a Double Whammy!! 🙄
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And for anyone who is a Brit who is thinking of selling – if you are thinking in terms of sterling, it is as good a time as any to act now.
It will be an awful whammy if the rates go back up and prices don’t.
But funny, for all the knocks, the Euro, Spain and EU gets on this forum, they seem to have maintained a very strong currency for some time now.
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It’s precisely because Spain currently has a strong currency that it is getting all the knocks. The stronger the euro gets the worse it is for Spain. As far as I can tell the only good thing coming out of this situation is it’s forcing the Spanish government to liberalise and cut down the size of the state a bit. Without being able to hide their sins behind a quick increase in the money supply, it looks like Spain is getting a dose of Thatcherism. It may do some good in the long term. It’s the short term that I’m worried about though.
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@angie wrote:
If I owned Spanish property now, as a Brit. I would certainly be trying to sell to convert back to Sterling at current exchange rates. Then, if rates went back to nearer 1.40-1.50 that would be a better rate for purchasing IMO.
.Shocked and appalled in equal measure.
The very fact people are considering buying such a toxic asset (for many reasons listed as before) in these circumstances is astounding.
I am really starting to think about the sanity of the buying public.
Talk about lambs banging on the slaughterhouse door demanding to be let in …… 😆
— Munnky
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Ozmunky, you’ve mis-understood my buying comment.
I would not be buying in Spain or Eurozone unless it was purely a life-style decision, not for investment as right now it’s not a good investment. So, for Life-style, I still would not personally buy until rates were back over 1.50-1.60 to the pound (if ever again), until completion costs were significantly reduced, and, Spain seriously tackled it’s illegal builds, dodgy lawyers, drawn out Court procedures, whilst insisting ALL Estate Agents and Developers joined a Gov’t body (not pay as you go membership to spurious bodies) and legally bound to a code of practice.
Basically I would not be buying then, Capiche? 🙄
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Several major currency traders went bust last year when these highly experienced and clever people bet on a rising pound Sterling and the opposite happened. I must admit I didn’t bet on it but silently agreed with the projected rise which made sense for all sorts of reasons.
Of necessity, I follow the currency markets, but I no longer guess at its course, I’m better at placing bets on the roulette wheel. Which reminds me of a visit to Las Vegas when the pound bought 2.20 Dollars. A lifetime ago? No, New Year 2008.
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