As the current Economic Crisis is compounded by the ?s Fall – How can I sell my house

It’s becoming accepted that we may be coming close to the bottom of the Present Financial Situation as far as Property Sales go. Then, just when it seemed like it couldn’t get much worse, the UK pound did a nose dive on the international currency markets.

Many experts hold up this event as proof of the unsuccessful policies of Gordon Brown over the previous 10 years as both Chancellor of the Exchequer, and latterly Prime Minister. However, lots of of the same experts expound the idea that the markets will not become stable until prices hit a point that is generally accepted as the bottom. The same school of thought insists that intervention which slows down this bottoming out process will only succeed in lengthening the Financial Situation.

For those very reasons, allowing the ? to fall quite freely could prove to be a fairly smart move by our government. Firstly, it will allow the ? to very quickly find its bottom value, from where it can start to climb back as confidence grows and the market players start to see opportunities. It might be a great way for the UK to be the first major trading country to get its currency through the bottom of the trough and out the other side.

The presently weak ? can only help exports, and limit both imports and Uk citizens taking foreign vacations. In the medium term, that can only be good for the economy.

Second of all, the weak ? could just prove to be a great boost to Property owners. Think about it. If I want to sell my Property right now, the weak ? will help to attract any foreign Cash House Buyers who may be out there, and are looking for innovative ways to make money out of the Present Financial Situation.

These Property Buyers now face a great opportunity to purchase Properties across currency borders, and if they get it right, they could easily double their expected profits.

For instance, if I Sell my House to a UK Property Buyer for ?100,000, and he can sell it two years later for ?150,000, he’s made fifty percent on his investment. However, if I get a Cash House buyer from the Euro Zone to Buy My House , he will make that same fifty percent profit in the same period, along with another great gain if the ? regains some or all of its historic strength against the Euro.

At present the ? will buy just €1.1. In normal times we expect to see the ? trading for approximately €1.4. If the ? is able to climb back against the Euro, and it will be more probable to do that if our economy begins to pick up prior to the remainder of the Euro Zone, then those persons from the Euro Zone who chose the current time to invest in UK Properties will make up to a further 27% profit.

Obviously, no one knows for certain what the currencies will do. That is why it’s important only to take these risks if you can afford to leave your cash tied up until the right market conditions present themselves.

This entry was posted on Wednesday, December 31st, 2008 at 6:33 pm and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.