In addition, there are many expectations of a noticeable decline in real estate prices in the next stage due to the high cost of financing, which is thought to be the first engine For the sector. This is especially true since the decline in the United Kingdom coincided with a decline in real estate prices in some areas.
For a foreign investor to purchase a home, he first needs to purchase the British pound.
The following equation can be used to account for the currency fall since the referendum on the Great Exodus of Britain from the European Union in the summer of 2016:
You may appreciate the size of the British pound’s depreciation from six years ago by noting that each pound lost almost half a dollar in a dollar pair.
It is possible to take advantage of this scenario, whose allure for the resident of the United Kingdom is due to the lack of currency use, by taking advantage of the significant decline in the currency by more than 35 percent and, if the foreign investor adds to it, the 25 percent decline in the prices of real estate in some regions.
A historical analysis of the pound sterling’s movement shows that, prior to “Brexit,” it was routinely trading between 1.55 and 1.62 and easily beyond 1.
50, but on the night of the infamous referendum, the currency started to fall free at a rate of almost 1. 50 to 1. 32 in a month, followed by $4 over the course of 4 months, to what? 20.
For three years, the pound attempted to return twice, but he was unable to surpass one dollar. 42.
The sterling hit rock low at $1 when the Korona epidemic began. 13.
But the big fall was in September with a bottom of about 1. 03 coinciding with the rapid and sudden exit of Prime Minister Liz Terrace.
Last but not least, political unrest and the numerous changes that took place, whether they affected ministers’ work or not.
How does the fall in the value of the pound sterling assist international investors?
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