Don’t let political uncertainty ruin your overseas property dream
Hats off to him – a red baseball cap more specifically – Donald Trump has defied the odds to become the President-elect, an outstanding achievement for a political maverick.
Any change in government sparks economic uncertainty, but with his Twitter addiction, chequered business background and controversial policy statements President Trump’s tenure in the Oval Office is likely to take this to a new level.
How could this affect British buyers of American homes? Only time will tell if the immediate post-election drop in the value of the dollar will continue, or whether his attempts to protect American jobs will lead to economic prosperity and dollar strength.
A weakened dollar could bring that condo in the Florida sunshine, or apartment in New York, within your budget.
For anyone with plans to live the American dream, a weakened dollar courtesy of Trump’s new politics could bring that condo in the Florida sunshine, or apartment in New York, within your budget.
It’s not just property buyers in the US that should have been keeping an eye on election results. Italy faces a referendum on political reform in two weeks (4th December) and if the polls are right and “no” is the answer, the euro could weaken further. France is gearing up for its presidential election in May and a victory for Marine Le Pen of the National Front is no longer seen as unthinkable. That could even lead to France following Britain out of the EU exit and yet more protectionist policies. The Dutch have an election in March which could have similar results, as the far-right anti-EU Geert Wilders shoots up the polls. No wonder EU leaders are making it clear that Britain will suffer after Brexit, “pour encourager les autres”.
Political uncertainty could trip up the euro; leaving Brits buying on the continent with more money at their disposal.
Political uncertainty is likely to trip up the euro; leaving Brits with an eye on a villa on the Costa Blanca, or a farmhouse in the Dordogne with even more money at their disposal. If the results go the same way as Brexit and Trump, a kicking for the establishment and Brussels – it could even spread to Germany, potentially tripping up Angela Merkel’s sedate progression to election victory in the autumn. On the other hand, the establishment could fight back and the euro recover. Whichever way it goes, you have to add the impacts of Brexit. For anyone approaching a property purchase, there is so much to consider!
With so much politics moving the currency markets, serious property hunters can at least take out the risk of political issues wrecking their plans.
By registering with Smart Currency Exchange, you will be allocated a dedicated trader, who will be able to talk you through your currency options. You might want to lock in a rate for the next 12 months with a Forward Contract. It might not make the next year’s worth of political action any easier to understand, but at least it won’t affect your currency and will allow you to budget effectively. Hats off to that!