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The clock is ticking.....

The clock is ticking.....

GBP/HKD OANDA:GBPHKD

If you do not trade forex but are concerned with global properties market sentiments , then knowing the currency exchange of the country that you intend to acquire the property with the one you are staying is crucial. Read this article here

From the chart, we can see in Oct 2016 and the recent Mar 2020, the exchange rate is the lowest, that means 1 pound is equivalent to 9.02 HKD. The lesser HKD you need to fork out, the more you earn from exchange rate point of view.

Now, those who wish to migrate to UK are not only facing a potential uprise in exchange rate but also a possible adjustment in UK property prices as well. The clock is ticking away and the heat is on..... Unlike buying a stock, you can find all information online but investing a property usually requires a F2F site visit to be sure, to feel safe that one's decision is right.

Naturally, those who invested early in 2008 when 1 pound is equivalent to 15 HKD would hold dearly to their UK properties unless the appreciation in property prices far outweigh the exchange rate.

A 500,000 pound property in 2008 would costs 7.5m HKD (based on 1 pound = 15 HKD)and the exchange rate loss if sold would be 250,000 HKD (based on 1 pound = 10 HKD and 7.5m minus 5m)

That is the power of understanding how forex market works and in property, understanding the long term trend of the exchange rates is crucial. Another example, SGDMYR has been consistently 1SGD = 3MYR but the appreciation of Malaysia properties (according to friends who had invested) are not great. They usually buy it as a 2nd home or for retirement. That way, it makes sense since for the same SGD dollar, you can get 2-3 x bigger property with more spaces, amenities across the Causeway.

Hope this is helpful......



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