Fence Sitting Brits Loose Out On Exchange Rates

One thing we have managed to predict lately was perhaps obvious: that the incredible window of opportunity that our British friends had to purchase here in Florida would be drawing to a close in the fourth quarter of 2008. We urged them to lock in rates quickly and make a purchase while they were getting over $2 to the pound – uneard of since the seventies. Combined with good mortgage rates and a US housing collapse you’d have to be more “bear” than Winnie the Pooh to miss the boat on this overseas fire sale.

But many Brits, a cautious bunch by nature, may have done exactly that. This week, they are looking at 5-year lows against the US Dollar wipping out thousands of dollars of equity they could have had even a couple of weeks ago. For example, on a $100,000 transaction, you would need the equivalent of an additional $15,000 compared to last Friday. For one UK client of ours who closed two weeks ago, the loss was over $8K between signing and closing. And that was before this most recent drop. For more see this UK TV news video - BBC UK News October 22, 2008 (Beware, they speak the Queen’s English. Contact me for translation.)

For more info on currency exchange, see our International Page. Our friends at MoneyCorp will be happy to discuss the current market conditions with your and help guide you through the volatility. Moneycorp also offer competitive exchange rates compared to high-street banks which helps to protect your investment against these sorts of adverse fluctuations in the exchange rate.  You can also contact MoneyCorp direct.

With prices still dropping in the Central Florida area, the deals might not be quite as good as they were last week – but let us find you the right condo, and you can still make out like a bandit.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *