COVID-19 has dramatically changed the landscape of the global property market and things may not be as negative as first thought. Alongside the upheaval, avenues of opportunity have opened up.
The recent crisis has thrown financial markets into chaos, with volatility a key factor throughout. It is affecting people buying and selling property abroad, with many people hesitant to progress with deals due to the uncertainty. But we have seen a number of clients create opportunities in this market, capitalising by leveraging the current climate to maximise the value of their purchase. Below are a few key points to consider when buying or selling in this climate;
A depreciating pound presents value for overseas buyers and sellers
In the currency markets, there has been significant flight into safe-haven currencies which are expected to weather the crisis effectively. These include USD, Euro, Yen and Swiss Franc which have all appreciated significantly against Sterling. At the same time, other currencies have decreased in value, thereby reducing the cost of property for an international buyer. This presents a brilliant opportunity as the cost of transactions have been dramatically reduced.
Interest rates at an all-time low
As interest rates have been slashed by central banks (Sterling is down to 0.1%) across the globe, the cost of mortgage repayments has also fallen. While mortgage lenders are asking for a larger initial deposit, for those that have the capital available this presents a unique opportunity to secure a great deal on a property transaction. If you’re obtaining a mortgage to pay for your overseas property, Privalgo can help structure a repayment plan in a way that can mitigate the risk of currency fluctuation.
Protection against volatility
As the impact of COVID-19 continues to be felt across the world we expect to see considerable movements in the currency markets. Whether you want to be protected against such movements or you are prepared to take advantage of them, we can help.
Speak to a professional
Privalgo offers professional insight into the most effective way to transfer currencies and how to best manage your transfers to achieve desired outcomes. Unlike the generic-type services offered by banks, our personalised service will provide a strategy that makes the most of your time and money.