NEGATIVE EQUITY, CURRENCY ISSUES & BREXIT: WHEN SHOULD I SELL OR COMMIT?
The short answer is – who knows!?
People often ask us what will happen to the £/€ going forward and how does that affect me if I’m in Negative Equity? In terms of Negative Equity, it’s all relative.
If you are €100,000 in Negative Equity but cannot afford that and currency fluctuations push this to €110,000………strangely enough you definitely cannot afford that.
So essentially Currency movements shouldn’t affect your decision process here, because as we said that is relative.
The enormity of a Negative Equity situation is not the issue it’s the ability to try and meet some of out and/or how to help the Dear Lender (aka the Bank/mortgage company) minimise their loss. This is very important and EU Property Solutions are the best in Europe at ensuring the Bank’s fully understand.
Returning to the issue of currencies and where they are going, the information from the financial press suggests the following:
- The $ will stay strong until the end of 2016 at least. This week’s Sunday Times comments that the huge hedge funds are ‘betting’ against the £ in a big way and suggest another 3-5% fall from the current rate of $1.31/£. This coupled with Mrs Yellen at the Fed saying the ‘only way is up’ in terms of US interest rates. whilst our Mr Carney cuts another sliver from the ½% rate as was, adds credence to this argument.
- The € is in ‘follow my leader’ mode with the $ for now since the shock of Brexit. The EU zone however is in some state! The Italian Economy and their Bank’s loan books have been on ‘life support’ and now their true horror is starting to spook the markets. A mere €350 billion would sort it! When this starts to play out, then the UK starts to unravel though the Brexit process and when the US does start to look at interest rates, the EU will start to be seen for what it is and the £ should start to recover.
That’s a lot of should we hear you say but the world is a mad mad place……LOOK AT THESE:
- The Donald could be the next President by the end of the year
- This is not a political statement on Brexit but who thought we would be waking up on the early hours of 24th June 2016 to a 51.9% majority to leave the EU.
- Today the EU rules that Apple must pay Ireland €13 billion in taxes but the Irish Government doesn’t want it nor can it take it and the place is skint!
So we will end on this. There is so much information/misinformation out there. We are consistently asked for our view and opinion and this is indeed, our view here for what it’s worth. If you have tough calls to make sure be armed with the information but only you can decide.
From our angle you need the best team available to support you and EU Property Solutions is that team.
Call KAREN on +44 (0) 330 124 1230 and talk your options through and then arrange a FREE consultation to look at all your options……there will be a way!