GBP v's Euro

[whaleywanderer]

Judging by some of the recent posts on the forum PP is going to be struggling for tourists this year, this would sadly mean that quite a lot of our favourite places going to the wall. It is a difficult time, economically, buts lets try to keep supporting them.

You can still have a good holiday without eating out every night and there are many smaller bars where you can get a reasonably priced snack.

The none euro countries seem attractive but I'm sure you would miss the familiarity and friendly faces that we have grown accustomed to.

 

[Alcanada]

The effect of the pound dropping sharply against the Euro is huge. Anyone who bought a property in recent years using sterling converted at the old rate has seen a 35% drop in value just through exchange rates, never mind the hit from the property market. And anyone trying to live on a UK pension in Mallorca is also going to be hit hard. This is going to affect everything in Pto Pollensa in the months to come....

 

[El Gordo]

The last comment suggested that GPPound users have suffered a double blow.

However, the value of property has actually gone up by 35%!! if you sold now and converted Euros to £!!!

eg if you bought a 150,000 Euro property when it was 1.5 E to the £ it cost you £100,000. If you sell it for 150,00E now its worth nearly £150,000!!! if you can sell.

However, running costs and living costs have suffered. Anyone living on a pension and suseptible to fluctuations in the exchange rate are really suffering at the moment.

Good luck to all in that position.

 

[Labore]

The last comment suggested that GPPound users have suffered a double blow.

However, the value of property has actually gone up by 35%!! if you sold now and converted Euros to £!!!

eg if you bought a 150,000 Euro property when it was 1.5 E to the £ it cost you £100,000. If you sell it for 150,00E now its worth nearly £150,000!!! if you can sell.

However, running costs and living costs have suffered. Anyone living on a pension and suseptible to fluctuations in the exchange rate are really suffering at the moment.

Good luck to all in that position.

Fair point GL but this only applies if you are lucky enough to be able to afford to buy the property outright.Some of us have euro mortgages.

 

[El Gordo]

Fair point Labore, my sympathy goes to all those trapped by mortgage.
Even worse if relying on rental income to service payments.
It can only get worse as Hoteliers demand clampdown on illegal lets.

 

[graham]

Euro was at £1.12 a moment ago. (From practically parity two weeks ago!) It's massively overvalued. Could be back to £1.30 within 2 months.

 

[BonysLadenEspana]

Euro was at £1.12 a moment ago. (From practically parity two weeks ago!) It's massively overvalued. Could be back to £1.30 within 2 months.

Graham,

Fair point, Eurozone interest rates are being reviewed next week and if, anticipated , substantial cuts are made we could see the pound rising as you suggest.

Strange being here earlier this week and paying more pounds than euros received from ATM.

BonysLad