Is now the Time to Buy or Sell Property Abroad?

publication date: May 14, 2010
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

Is now the Time to Buy or Sell Property Abroad?

We are heading into holiday season again – and that’s often the time when people try to buy a holiday property, and for those hit hard by the credit crunch you may be wishing you could sell your property as soon as possible.

How do you know if it is the right time to buy or sell a property? What most people don’t realise is that one of the most important decision making influences in your property purchase or sale abroad is what’s happening to the value of the good old British Pound!

Since the credit crunch, the pound has taken a bit of a pounding. Back in 2007, the pound versus the dollar declined from record highs to a ‘new low' of $2.0539. This at the time was thought to be a bit serious so people started to drop out of the overseas holiday homes market. And a good thing too, as sterling is currently only $1.52 to the pound, although this is looking to rise as confidence in the US is waving slightly after weak economic reports.

Good news may be on the horizon though as currency specialists think the pound might be on an upward spiral.

According to foreign exchange firm FairFX reports, “In the past few days, investors have been selling euro-based assets and have taken an interest in sterling instead. By the end of yesterday [April 30th 2010], the pound had clawed back another three cents on the euro to reach €1.11 to £1."  This is despite the 2008 low when the £1 took almost parity with the Euro at €1.0195 to £1.

Heath adds, "Sterling has also rallied against the US dollar and is now trading at $1.52 to £1 due to US confidence being hit by weak economic data and the Federal Reserve having hinted at concerns of deflation".

Not sure where or what to buy abroad, or if it’s the right time? Then email or tel 0845 838 1763.

Need help with a property problem? Have a question? Why not call Designs on Property on 07585 897128 or Contact Us via email.
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