The Euro and New Markets

[Tailoredhome]

Happy New Year all, so where do we think the Euro will go then? in the past year buying a property in eurozone has become up to 30% dearer and you can rest assured that the pound will get weaker this week when UK interest rates are cut again my spread bet will be that the pound is worth between 93 and 95 cents!!

But rest assured whilst in the short term things look bleak is will only be a matter of time where the ECB has to cut it's rates too. In a recent report I have read up to 45 analysts interviewed believed the pound will be worth 1.20 euro and maybe a little more by the end of the year, so whilst we have to sit tight where do we all buy??

I personally am looking towards Asia and South America, so countries such as panama, argentina, china (shanghai) amongst others. Any comments or thoughts???

[slavipz]

Thailand is a great country, where i would buy for sure, even though i would invest in my own country as in 2010 we are entering EuroZone and the official currency will e EURO. Right now it is a good place to buy anywhere, as there are some great burgains...

[daniel tsb]

This is an interesting thread to discuss about the impact of the currency crisis and property investment. UK buyers could get good advantage to buy in Spain (or other Euro countries). Let us keep an eye on the evolution of currencies exchange rates

[PureFX]

The Bank of England needs sterling to be cheap to encourage investment in the UK. That's not so good for people hoping to buy property abroad.

[daniel tsb]

Originally Posted by PureFX

The Bank of England needs sterling to be cheap to encourage investment in the UK. That's not so good for people hoping to buy property abroad.

Yes... but I am not sure how good it is to keep the sterling cheap when the UK property market needs to be picked up. The Bank of England may increase the interest rate to re-strenght the sterling. What do you think about that?

Happy Sunday

[PureFX]

Hmm. I think British banks should be more willing to lend to potential home owners. Once the banks realise that normal people aren't high risk investments the housing market should pick up. In the meantime UK manufacturing is fuelling the recovery, and for that sterling needs to be cheap.

[daniel tsb]

I agree with you at this stage. UK first home buyers are finding a lot of difficulties here. So there is the risk of them taking their little saving are trying to buy in Spain, where is cheaper, better mortgage option and "better life"