#GreeceDefaultWatch. Euro Crisis Improves Exchange Rates for Brits
The recent Eurozone sovereign debt crisis has resulted in the reduction of the value of the single currency, providing overseas property buyers with in fact over 8% more for their money than if they were buying Euros in July last year according to the award-winning experts at Currency Index.
However if the Euro is in so much trouble, is it wise to be buying abroad at the moment?
There has been vast speculation about anything from evacuation plans on the Algarve to contingency plans for banks with Euro exposure, but a lot of this is scaremongering, according to Robin Haynes, managing director of Currency Index who says,
"Many of our clients have been asking whether it is safe to buy and send Euros abroad - and while the situation is far from resolved, the European Central Bank will not allow the Eurozone to collapse."
The forthcoming EU summit on Monday 30th January is likely to see Eurozone leaders agreeing extensions to the single currency stability measures, as well as the new fiscal pact which should ensure that tax and spending are at least put in line to protect debts from growing unsustainably.
"Even if Greece were to default on its debts and leave the Euro, local chaos from a devaluing Greek currency would not be likely to affect the Euro's own future, and in fact with the new measures being put in place we are likely to see Euro strength in the medium term - markets will see the reforms as a step in the right direction.
"Buyers who are worried about any currency devaluing could even consider holding debt (such as a mortgage) as well as assets (such as property) to balance out the perceived risk" says foreign currency specialist, Haynes.
With Euro exchange rates near a 16-month high for Brits sending money abroad, and Eurozone property prices under pressure too, now is in fact one of the cheapest times to buy a place abroad in recent memory. And ignoring the more sensationalist stories in the press, the savvy buyer can now snap up a bargain in the sun.
Currency Index reported a 32% increase in the volume of Euros transferred by clients to Spain in December 2012 compared to December 2011, showing that despite the doom and gloom in the news, Brits are still keen on a second home or retirement home in Europe.
Currency Index has been helping advise British clients moving to, or living in Crete, others parts of Greece and Cyprus, as well as Spain since 2008. It is reassuring to know that in the United Kingdom, Currency Index was one of the first currency brokers to become an Authorised Payment Institution under FSA regulations in 2009.