Brexit – more Italian property opportunities
The financial markets got it wrong and the UK unexpectedly voted to leave the EU yesterday, throwing markets into a period of considerable uncertainty. While this may not be what you wanted it does offer opportunities;
Italian property just got cheaper
For buyers who are not Sterling or Euro-based, the slide in the Euro makes their home currency go further. There is in effect a reduction in Italian property prices.
Americans have seen a 14% cut in the cost of buying in Italy over the past 10 days. The $1m home now costs only $860,000.
Most other currencies have increased their buying power by 2-3% – typically a saving of around $10 – 15,000 on buying a Lake Como apartment with great lake views.
Exchange rates are expected to be volatile
It is always difficult to decide when to buy your Euros. We face exactly the same challenges.
And we like periods of exchange rate volatility, where the cost of buying Euros rises and falls from day to day, because we are able to take advantage of this. Our FX brokers in London not only provide helpful advice on expected currency movements – and expertise is all the more valuable when the markets are uncertain – but also enable us to lock in a desired rate for buying Euros at a future date. This is really helpful when the Euro is having a weaker moment and gives us a known maximum cost and the opportunity to benefit further if the rate is more favourable when the time comes to purchase Euros.
…and if you are selling
For those in the Eurozone there is no change. British owners looking to sell will find that their sales price buys them more sterling, or allows them to reduce their selling price to be able to transact more quickly.
With the volatility in currency anyone selling when the Euro has weakened may be able to take advantage of volatility and sit on the Euros until a better moment comes along for conversion to their preferred currency.
Read more: Does Brexit Matter?