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Trampa501

Consequences Of A Lower Pound

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I fear this may prevent the much needed correction in house prices.

For a start 3 reasons (there may be more)

1 A big increase in tourism - A big percentage of whom will stay in Airbnb-type accommodation. More landlords

2 Foreign investors see housing as a bigger potential

3 Government under economic pressure will do even more to keep the housing sector afloat.

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In a way it is a correction in house prices. It's also (in international terms) a pay cut for everybody, but one that makes room for inflationary pay awards that can be a correction in house prices.

Does it matter if the correction is in real terms rather than nominal cash value?

I'm happy for prices to stay at the current nominal value and for my salary to double in nominal terms. That isn't any different to me to stagnant wages and a 50% price fall.

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a) I think the number of tourists and buy who visit is small compared to demand from people who need someone to live.

B) If i was a foriegner looking to buy a place in the UK, for the long term, id wait as the pound may decline further, which means a further loss in real terms.

c) hopefully government policy will try to keep a lid on prices, some good noises coming out of the media recently, now they have an excuse which the dont like 'brexit', they can use that as an excuse to generate house price fear.

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I fear this may prevent the much needed correction in house prices.

For a start 3 reasons (there may be more)

1 A big increase in tourism - A big percentage of whom will stay in Airbnb-type accommodation. More landlords

2 Foreign investors see housing as a bigger potential

3 Government under economic pressure will do even more to keep the housing sector afloat.

Courage is not the absence of fear, it's the courage over it.

So grow some balls.

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As a foreign investor, you can either take the view that the UK economy is buggered, in which case you're likely to sell for less £, but a lower £ might make up for the loss. Or you can take the view that the UK economy will blossom, but any gains might be offset by a strong £.

With a potential 10% up and down side on the value of the £, I think you'd have to crazy to invest in UK property over the next few years. Too much potential currency volatility.

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As a foreign investor, you can either take the view that the UK economy is buggered, in which case you're likely to sell for less £, but a lower £ might make up for the loss. Or you can take the view that the UK economy will blossom, but any gains might be offset by a strong £.

With a potential 10% up and down side on the value of the £, I think you'd have to crazy to invest in UK property over the next few years. Too much potential currency volatility.

Property purchase is long term and tied .....most money now is made on short term or instant fluctuations/ movements......freedom and flexibility is key......those in the know, know fastest, quick and sooner.....those are not always people. ;)

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As a foreign investor, you can either take the view that the UK economy is buggered, in which case you're likely to sell for less £, but a lower £ might make up for the loss. Or you can take the view that the UK economy will blossom, but any gains might be offset by a strong £.

With a potential 10% up and down side on the value of the £, I think you'd have to crazy to invest in UK property over the next few years. Too much potential currency volatility.

However, there are a lot of foreigners with british right to reside - or expats like me - who would not mind a small flat in the UK as a bolt hole for visiting. If flat/small cottage prices drop 50% due to currency woes, even I would be tempted...

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if you have sensibly had your deposit funds in a well diversified portfolio (gold, bonds, cash, shares) then house prices have indeed fallen quite a bit against your savings (partly due to weaker sterling)

so its all good. a crash was always going to be this way a bit.

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However, there are a lot of foreigners with british right to reside - or expats like me - who would not mind a small flat in the UK as a bolt hole for visiting. If flat/small cottage prices drop 50% due to currency woes, even I would be tempted...

Down to government if they want to encourage holiday homes, or non resident homes or second homes......it would then not be the price that matters it would be the taxes payable that matters. ;)

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one of customer at work buys stuff for the shopes. they buy in dollars and most comes from hong kong and china.

they have just changed the dollar rate on reports from 1.4 to 1.3. basically this means the stuff they buy is 8 percent more expensive. So eventually this will end up the shops. So expect christmas gifts and toy will be more expesnive christmas time.

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one of customer at work buys stuff for the shopes. they buy in dollars and most comes from hong kong and china.

they have just changed the dollar rate on reports from 1.4 to 1.3. basically this means the stuff they buy is 8 percent more expensive. So eventually this will end up the shops. So expect christmas gifts and toy will be more expesnive christmas time.

Toys/gifts becoming more expensive will the least of our worries if the pound keeps taking a kicking. Fuel, energy, food, clothes - all of them will become more expensive

Still, at least people will have the thought of those pesky immigrants being sent packing to comfort them as they sit housebound and hungry in their cold homes this winter

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Toys/gifts becoming more expensive will the least of our worries if the pound keeps taking a kicking. Fuel, energy, food, clothes - all of them will become more expensive

Still, at least people will have the thought of those pesky immigrants being sent packing to comfort them as they sit housebound and hungry in their cold homes this winter

Yeah, and those of us who sell abroad will make more money. We're running a trade deficit, so it will hurt more than it helps, but it's meaningless to ignore the balance of trade entirely and just focus on the downside.

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Toys/gifts becoming more expensive will the least of our worries if the pound keeps taking a kicking. Fuel, energy, food, clothes - all of them will become more expensive

Still, at least people will have the thought of those pesky immigrants being sent packing to comfort them as they sit housebound and hungry in their cold homes this winter

And a boon for UK producers both in the domestic market and the export market.

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Yeah, and those of us who sell abroad will make more money. We're running a trade deficit, so it will hurt more than it helps, but it's meaningless to ignore the balance of trade entirely and just focus on the downside.

Yep - I'm not saying there won't be people who benefit, just pointing out that your typical BREXIT voter may be in for a bit of a shock

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What a load of old shyte.

Do you ever wonder why virtually no-one responds to your posts on this forum?

Well, it's because they're usually about as insightful as the comment you just posted

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And a boon for UK producers both in the domestic market and the export market.

until the producers get crushed replenishing inventories from which to produce product, and higher wages for their top staff.

it's a loser

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Yep - I'm not saying there won't be people who benefit, just pointing out that your typical BREXIT voter may be in for a bit of a shock

I think youll find that the average brexit voter is well aware of what may or may not happen, they quite frankly dont give a @@@@, brexit wasnt about money in the pocket, i for one am quite happy to see a falling pound, inflation (even though i dont believe there will be any), my cost of holidays go up, the bankers leave london, lower house prices, the eton scumbags out of a job, and the UK telling the EU bureacrats to get stuffed ...... and thats just for starters.

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until the producers get crushed replenishing inventories from which to produce product, and higher wages for their top staff.

it's a loser

If a higher pound is all upside then interest rates can be put up. :)

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I think youll find that the average brexit voter is well aware of what may or may not happen, they quite frankly dont give a @@@@, brexit wasnt about money in the pocket, i for one am quite happy to see a falling pound, inflation (even though i dont believe there will be any), my cost of holidays go up, the bankers leave london, lower house prices, the eton scumbags out of a job, and the UK telling the EU bureacrats to get stuffed ...... and thats just for starters.

They may not have given a f*** on the day of the vote, but how many of them will still not give a f*** if/when the reality of a prolonged drop in the value of the pound bites?

There were people the day after the vote regretting their decision ffs

Edited by EssKay

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They may not have given a f*** on the day of the vote, but how many of them will still not give a f*** if/when the reality of a prolonged drop in the value of the pound bites?

There were people the day after the vote regretting their decision ffs

Didnt the MSM sell brexit as doom and gloom and armageddon?

Are you saying the voter didnt believe them?

Maybe they should of sold remain as doom and gloom?

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Yep - I'm not saying there won't be people who benefit, just pointing out that your typical BREXIT voter may be in for a bit of a shock

Please define a typical Brexit voter (without recourse to the word racist)

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Yep - I'm not saying there won't be people who benefit, just pointing out that your typical BREXIT voter may be in for a bit of a shock

In that case, perhaps your typical BREMAIN voter may be in for an equal shock.

Edited by Digsby

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Do you ever wonder why virtually no-one responds to your posts on this forum?

Well, it's because they're usually about as insightful as the comment you just posted

Without going into the whole Brexit debate, and showing what a Crock that statement is, I simply cannot be remotely bothered. I much prefer morons being morons, and showing how vacuous your "argument" is.

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Didnt the MSM sell brexit as doom and gloom and armageddon?

Are you saying the voter didnt believe them?

Maybe they should of sold remain as doom and gloom?

It was clearly a protest vote. The doom and gloom rhetoric was overdone and may have pushed a few people over the edge, but ultimately I don't think it made much of a difference.

The dominant issue seems to have been immigration and the remain side had absolutely nothing to offer to reassure people on that front. That's why they lost

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