How could a Eurozone Recession affect your International Property Purchase?

Although the Eurozone appeared to have dragged itself out of the dark days of recession at the beginning of 2014, reports published over the last few months are indicating that the currency bloc’s tentative recovery could be faltering already. \r\n\r\nIf you were one of the thousands of people who took advantage of the global economic crisis and used it as an opportunity to purchase a bargain-price foreign property in nations like Spain and Greece, these latest developments might be of concern. \r\nWhile it looked as though the Eurozone was on the path to recovery, property prices began to inch higher. But if Germany (the Eurozone’s largest economy) enters a technical recession before the close of the year (which many economists expect to be the case) a downturn in the currency bloc won’t be far behind and real estate values might slide again. \r\n\r\nIt’s also important to remember that any fall in the value of the Euro could affect how much of a return you get on your investment if you decide to sell your foreign property. \r\nThe Euro has been losing ground against the Pound and US Dollar as a result of growth concerns, and if the Eurozone does indeed enter a recession the common currency could fall further still. \r\n\r\nWith exchange rates being so responsive to external factors, moving money overseas can be a risky business. If you’re selling your investment and time your transaction badly, you could be thousands of Pounds out of pocket. \r\nConversely, chose to move your money when the exchange rate shifts in your favour and you may be considerably better off. \r\n\r\nIf you’re moving large sums of money overseas, like the amounts involved in a typical foreign property purchase/sale, you may want to consider talking to a reputable currency broker about your options. \r\nAs well as giving you invaluable guidance on exchange rate movements and market trends, they can tell you about specialist services – including the option of fixing a favourable exchange rate for up to two years in advance of a trade. This means of securing a rate is fantastic for protecting transfers from the risks attached to adverse shifts in the market.\r\n\r\nThis week the European Central Bank will remain in focus as several officials give speeches on fiscal policy and both Germany and the Eurozone publish influential reports – including Consumer Price Inflation data.