The Comments |
I notice rate for past month has been above 1.20 and is heading close to 1.22 today
Anyone any thoughts as to the future?
0
Like
|
faro-reading some reports in the financial press this morning with various views that it could be 1.25 -1.30 by the end of the year. I'm no expert but 1.25 ish sounds closer to the mark.
This message was last edited by redsam79 on 13/08/2010.
_______________________
SUCCESS IS SIMPLY A MATTER OF LUCK....ASK ANY FAILURE!!
0
Like
|
I have always felt some stability and a rate of 1.25ish might help get a little bit of life back into real estate.
I know of many who still hesitate over rate and some who come close and then the UK releases some disastrous report and they defer on their decision to buy.
There are some fantastic bargains out there if you have the money ....
0
Like
|
|
Hi! I thought the same thing. I watched the news expecting the £ to drop like a stone. But it didn't!!!! It seems that the UK exports lots to the euroland so the better they are doing - the better we may do. BUT another article said that the Germans are exporting and not importing. Conclusion - I know more than Justin - but it has not done me any good. I'm none the wiser!
Might as well cross me fingers and stop trying to fathom what the 'ell is going to 'appen.
0
Like
|
faro-hesitation on buying has always left me a little bewidered, particularily if it is for a second home or permanent home. Personally when i bought I did not give alot of thought to the exchange rate but more to the use me and my family would get from the property. Saving a few thousand euro over a 15 -20 (or longer) year period of ownership was not my primary interest, and I am not rich enough to say that casually, but I just considered it's use more important. But yes in general I agree it could stimulate the market as it creeps toward 1.25 or more.
He who hesitates..........!!
_______________________
SUCCESS IS SIMPLY A MATTER OF LUCK....ASK ANY FAILURE!!
0
Like
|
It highlights the British mind at the moment in that if there is good news we're always looking for or expecting the bad news.
I think this is the real challenge to any recovery. It's the old feel good factor.
When everyone was feeling good they were spending money they did not have and now everyone feels bad and won't spend the money they have and are saving it all for the rainy days.
0
Like
|
Yes that sounds like a reasonable explanation, faro, and I think when I bought the rate was probably around 1.45 or so and perhaps as you say the feel good factor left us with no need to examine the rates the way we do now.
_______________________
SUCCESS IS SIMPLY A MATTER OF LUCK....ASK ANY FAILURE!!
0
Like
|
There are so many factors that effect the ex rate no one can be sure of what is going to happen (unless of couse you are George Soros and have sufficient funds to make the market do what you want it to do.
Will Spain and the other "PIGS" manage to deal with their debt and keep their economies going? If you think yes then €1.25 may take while. If you think something will break (maybe even the €uro) then taking €1.25 if it comes will be poor value. My personal view ( as someone to whom this matters a great deal but is not an expert) is that there are fundamental flaws in the €uro which will either lead to its devaluation or breakup. This may take a year or so to happen and for the pound to benefit the UK government will have had to make credible progress towards balancing the books without creating another recession.
_______________________
David
0
Like
|
Dave Munster: This may take a year or so to happen and for the pound to benefit the UK government will have had to make credible progress towards balancing the books without creating another recession.
Be careful what you wish for. If the Euro breaks up or Spain pulls out, then you are quite right, the good news would be that the Euro would fall precipitously, maybe 3 Euros to Sterling, for example. The bad news is that anyone with property in Spain would see its value halved overnight.
0
Like
|
GuyT - the instability that would lead to a 3€ = £1 exchange rate would be bad for everyone. I do not expect that sort of level. We bought our apartment at $1.40 = £1. At the time I was disappointed as it had been €1.50 not that long before. For those of us with STG asets or income I regard €1.40 as giving us fair value. I fully appreciate that people who have the majority of their assets in €uros will have a different perspective. Many of those who have sold up to go home at seemingly low prices have at least benefited from the strength of the €uro.
_______________________
David
0
Like
|
The finace industry generally views the fair value for £ to Euro as being around 1.3.
A least one of the major UK banks is predicting that the £ will slowly strengthen to Euro, with 1.3 perhaps being seen quarter two 2011. With it then continuing to SLOWLY rise to 1.33 by start 2012, where it is then expected to plateau.
As ever no guarantees and you pays your money & you take your chance.
John
0
Like
|
what's been happening in the last week or two?
we've seen rate go from almost 1.22 to 1.17
0
Like
|
Yes we was getting 1.22 in Gran Canaria which surprised me. So we was a bit better of than I thought we would be.
Hope it continues for when we go to the apartment next month.
Pat
_______________________
0
Like
|