Jump to content
House Price Crash Forum

The £ Is Dropping


AC44

Recommended Posts

0
HOLA441
  • Replies 596
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442
2
HOLA443
3
HOLA444

We'll see how it plays out.

I don't claim to have any advanced understanding of that side of currency side of the market. Got to wonder what it means for those who keep telling us '2008 happened already' + point to how there was a significant HPC for dollar holders + sees only long term HPI.

Yes HPI reflation, but those foreign buyers just taken a hit in £, on 24th. Lower sterling going to bring in more foreign buyers against a backdrop of uncertainty re EU, nevermind all the other tightening with ATED, higher stamp duty.

What about all the US interests who've been buying in UK recent years (hotels and the like - prime housing), with dollar wealth/financing. For the moment, a hit vs their dollar positions.

Link to comment
Share on other sites

4
HOLA445
5
HOLA446
Foreign investors eye UK property after Brexit fallout

HONG KONG: With property prices in Britain predicted to plummet post-Brexit, foreign investors, especially in Asia, are already poised for a buying spree.

It is an ironic twist to the shock referendum result ─ many who opted to leave the European Union saw their vote as a deterrent to outsiders looking to take advantage of economic opportunities in Britain.

The aftermath of Thursday's vote to leave the EU saw the resignation of British Prime Minister David Cameron and the collapse of the pound to a 31-year low. There was pandemonium on currency, equity and oil markets.

At around 2100 GMT Friday, sterling was down about 8.8 per cent against the dollar compared with Thursday night, and foreign exchange experts predicted more weakness ahead.

Property prices are also expected to take a hit, with reports of buyers pulling out of transactions due to market uncertainty.

But while there may be a "wait and see" approach for some, ambitious foreign investors are on the hunt for bargains while the exchange rate is so low.

"Several of my opportunistic investors have said we really ought to think about this seriously, and to think whether we should take advantage of this new window in the market," said Nicholas Brooke, chairman of professional property services for the Royal Institution of Chartered Surveyors.

"Anyone who's not dealing in sterling would see an opportunity." Brooke, whose firm plays an advisory role for prospective buyers, said while many clients remained cautious, some in Hong Kong and China with "substantial" investment capabilities had voiced interest.

London-based international property agent Knight Frank also said foreign investors would be wary as they assessed the full impact of the Brexit fallout, but the drop in the pound would mean their buying power would "increase significantly".

Interest would be especially strong from China, Hong Kong and Singapore ─ where investors have a long history of buying up property in Britain, especially London, the firm's Asia-Pacific specialist Nicholas Holt said.

Chinese international property portal Juwai.com predicted 30pc more consumer enquiries this month than in May.

The historic low of the pound against the Singapore dollar also constituted a "fantastic buying opportunity" for investors in the city, added Donald Han, executive director of Chesterton Singapore, a consultancy specialising in UK property.

'Wholehearted embrace'

Asian investors have long sought out both commercial and residential UK property off the back of potential for capital growth and a resilient economy.

London house prices are some of the most expensive in the world and have been on the rise over the past six years.

But in the wake of the Brexit vote, international consultancy KPMG has forecast house prices could fall 5pc nationwide and even more in the capital.

Property consultancy Jones Lang LaSalle (JLL) said capital value adjustment could be down up to 10pc in the next two years.

The International Monetary Fund has warned that the British economy could sink into recession next year and overall economic output would be 5.6pc lower than otherwise forecast by 2019, with unemployment rising back above 6pc.

However, the Brexit camp argues that the business world will adapt quickly with Britain's flexible and dynamic economy buoyed by new economic partners and selective immigration.

"The UK's decision to leave the EU is an historic event and we should embrace this wholeheartedly," said Robin Paterson, joint chairman of UK Sotheby's International Realty.

He predicted increased investment from from Asia as well as the US.

Besides established investors into Britain, some areas might see new blood join the fray.

JLL predicts more buyers from India, which is already an established source of property investment into Britain.

"It is very likely that many more Indians will seek to invest there," said Anuj Puri, JLL chairman and country head for India.

Link to comment
Share on other sites

6
HOLA447

The cash for some people is irrelevant. They will want the prime properties in Knightsbridge or Mayfair. Money is irrelevant. You want the building. Who cares if it costs £50 million or £25 million? These people have 100s of millions if not billions.

Link to comment
Share on other sites

7
HOLA448

Production?

There is a politically motivated killing of an MP in the UK roughly once every 5 years. So the base odds of such an event occurring randomly in the week before the referendum were approximately 1:250, bring the fact that the supposed political persuasion of the perp was a fringe minority at the extreme end of a particular side of the issue you can probably up those odds to several thousand to one.

Edited by goldbug9999
Link to comment
Share on other sites

8
HOLA449

Foreign buyers won't buy property for sometime. I suspect 4-5 years. It is simply too risky to put vast swathes of cash into an illiquid asset until a currency has bottomed or is very cheap. 1.37 isn't very cheap.

...foreign buyers were already put off by the government promise to ban overseas trusts in shady finance havens buying property mainly in London.....trust this is implemented soon to stop this money laundering..... :rolleyes:

Link to comment
Share on other sites

9
HOLA4410
10
HOLA4411

Risk Rout Deepens as Pound Slides Further on Post-Brexit Turmoil

The bleeding in financial markets continued Monday, with the pound extending its record one-day selloff after the U.K.’s vote to exit the European Union threw British politics into chaos, fueling anxiety over the decision’s impact on the global economy. The rout in riskier currencies picked up where it left off Friday, with the Australian and New Zealand dollars slipping with the euro as the Norwegian krone tumbled more than 2 percent after U.S. oil broke below $48 a barrel. Sterling sank beyond $1.35, extending losses near weakest level since 1985 as investors face months of uncertainty over Britain’s future.

“Markets will likely be in a febrile state for weeks to come,” said Ray Attrill, global co-head of foreign exchange strategy at National Australia Bank Ltd. in Sydney. “I’m not sure that changes even when the political leadership vacuum in the U.K. is filled.”

Edited by rollover
Link to comment
Share on other sites

11
HOLA4412
12
HOLA4413
13
HOLA4414
14
HOLA4415
15
HOLA4416
16
HOLA4417
17
HOLA4418
18
HOLA4419
19
HOLA4420

They have in these situations in the past

remember '90's when they put them up 4 times in 1 day to try and prop the £?

Well this is bigger!!!

I do, It was about a week after I bought a house. Shat myself when I heard the news, no way I could have afford the payments at those levels.

Link to comment
Share on other sites

20
HOLA4421
21
HOLA4422
Guest BillyNI

There is a politically motivated killing of an MP in the UK roughly once every 5 years. So the base odds of such an event occurring randomly in the week before the referendum were approximately 1:250, bring the fact that the supposed political persuasion of the perp was a fringe minority at the extreme end of a particular side of the issue you can probably up those odds to several thousand to one.

Things with 1000 to one odds happen every day. You seem to be implying that some force was at play other than a nutter.

Link to comment
Share on other sites

22
HOLA4423
Guest BillyNI

They're not going up mate.

He's just trying to claim any bounce as his own.

The chances of them putting up rates now are seriously low. Unless the £ falls by 10% tomorrow, no way is the rate going up.

Link to comment
Share on other sites

23
HOLA4424
24
HOLA4425

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information