Could now be the time to buy abroad?
Brexit is causing all kinds of changes to the established order of the UK’s political and economic systems – but one of the main ways in which this is happening is through effects on the value of the currency. The pound has plummeted in the last few months, especially since Boris Johnson was elected Prime Minister. Does that mean now could be the time to snap up that beautiful place in the European sun?
What does a low pound mean?
From a day to day perspective, the pound’s low value might not cause much of a difference to your spending power. The only time that you will really notice a change is when you place a transaction abroad. Buying a certain amount of foreign currency for a holiday, for example, will reveal the fact that you get less for your money – and if you’re buying a house, that could be a big strategic problem.
Right now, you may not be able to get quite as much for your money – but it’s important to remember that there is more going on than just Brexit. Interest rates in both the UK and in the Eurozone are relatively low, so property is more accessible than usual at the moment, and it may even be enough to offset the cost of the poorly-performing pound. Property in Europe is also often cheaper than in the UK, even in parts of popular countries like France, so if you are purchasing a home for residential purposes rather than just for investment purposes you may well be fine.
Steps to take
If you’re interested in buying abroad while the pound is so low, you may want to wait and see if the market recovers and the value of the pound’s purchasing power rises – but that, of course, comes with the risk that the situation could get even worse. It’s worth always keeping in the back of your mind the fact that organisations like National Property Trade are able to buy lots of properties at close to the valued price within a week – so even if the worst happens and you end up having to sell in a rush, there are still options.
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