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How the Exchange Rate hit me.


602

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Hi,

 

I moved the cursor from title to script, and it promply posted itself. So I did it again, wrote mail, and sent. It obviously didn't arrive.

 

To cut story short, we sold our place in France when £ and € were close to parity. So €56000 was close to £56000. By the time the buyer had sorted out his mortgage ..... and the Notaire had returned from holiday ..... the exchange rate had dropped to £1 = €1.20, so €56000 translated to about £46,000. Ouch!

 

602

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Ouch indeed! We have just gone the other way so benefitted from the improved rate of the £ - still watching rates though for the next transfer out - property needs some work... Never thought I would see the day when I would want the UK currency to be the euro! 8-)
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Sorry to hear about the financial hit 602. Little consolation, but if you had bought a motorhome for £56,000 I expect it would have lost more than £10,000 in value as you drove off the dealer's forecourt, so you pays your money......

 

Whilst the £ is outside the Euro investment in assets in mainland Europe will always be, in effect, currency speculation. Moreover, anyone doing so is betting on the relative economic competencies of British versus European politicans, bureaucrats and bankers........

 

Buying and running my motorhome has cost a similar sum to your outlay. When I bought it, I absolutely knew it would be a (heavily) depreciating asset whereas at least you and Catinou put your money in an international currency casino where you had a chance to win! So from a certain financial point of view, you will almost certainly end up better off on your deal than I will on mine.

 

Bob :-)

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