Well some of you took advantage of the huge price reductions on selected properties that I was offering, but most of you didn’t believe me when I said that I had lived through two of these crises before, and it always comes out right in the end, and that the value of the Pound and the Dollar would continue to fall.
Umbrian property prices are stable and now there is confirmation of my words in the shape of the recent Standard and Poor report on Umbria, which appeared in the Corriere, our local paper, published in Gubbio. “Umbria is A+, prospects are stable, various financial and healthcare requirements are in place and functioning well. Business reports a 4% rise, and for the next three years the prospects are good, thanks to strict financial controls. The world financial crisis has only “modestly” affected Umbria”. Quite a different story from our neighbours in Tuscany.
£ / €, and the Bank of England is still pursuing a policy of “quantative easing”, inflation by any other term, and of course the pound has again fallen when compared to the Euro, despite the Greek crisis, and the UK financial difficulties seem to be as grave as the Greek ones. Since February 2002 the Pound has fallen by 43% against the Euro, and UK property prices have crashed. Many shops and businesses, at least in London and the south east now accept Euro over the counter, and all high street banks have Euro accounts available. Doubtless that when there is parity between Pound/Euro, probably within the next year or so, the Pound will fade away. No one, I imagine, is going to cling onto Pounds whilst there is the possibility of changing into a more stable currency. Both political parties have plans to announce, after the forthcoming election, the alignment of the British currency with that of Europe.
$ / €, and the US bottom line bank base rate has been increased from 0.5% to 0.75%; again tremendous declines in property values, unprecedented unemployment and a fall, despite vast sums being pumped into the banks, in the value of the Dollar in your pocket. Since February 2002, just eight short years, there has been a fall of 56% in the Dollar/Euro rate.
And if you think that your money is going to get better, look at this:
http://www.thinkbigworksmall.com/mypage/archive/1/29027.
However property in the Upper Tiber Valley of Umbria in central Italy; in this clean, crime free, beautiful, traditional and hospitable area, two hours from Roma and Firenze, with a mediterranean climate; olives and grape vines; has been increasing in value during the past 35 years and is now more costly than nearby Tuscany, where properties used to be twice the price. So those with properties here are sitting pretty, and those wanting a safe and continuing haven for their investments are starting to look hard again. Grandma used to say “It is always better to buy the worst house in the best street, but never the best house in the worst street” In the first instance the other property values will drag you down, but in the second, they will lift you up. And I’ve really got some of the worst houses you could imagine! Have a look at 004 Casetta, or 889 Meotti, if you don't believe me, and both rotting away on a green hillside near Lake Trasimeno, and both increasing in value, in Euro, every year.
Can you afford not to get onto the first rung of the Umbrian property ladder?
Several of the properties on my list,
www.propertiesumbria.com, are available for only 10% down and 10% every six months for the next 5 years, if you still want to keep most of your hard earned cash in Pounds and Dollars..
But for those of you still not prepared to make the leap into Umbrian bricks and mortar then perhaps the property skill competition which is currently being organised may be of interest. The prize is a town house in the countryside, near Montone, “one of the ten most beautiful hilltop towns in Italy”, to be handed over fully restored, furnished and equipped with linen, cutlery, kitchen equipment etc etc, solar panelled, triple glazed, with a “green” gas-powered motor car, large garden, garden furniture, with adjacent swimming pool, to a total value of € 358.000. Only 3580 tickets are to be sold at € 100.00, to avoid any taxation difficulties regarding profit, and the draw to take place 12 months time after the first ticket is sold. Final details now being processed.
You could just be the lucky one, and at the current rate of decline of the Pound and the Dollar, 6 – 7% a year, the exchange rate on € 358.000 will have lost you far more than the € 100.00 cost of a ticket. In fact the loss could well be about € 23,000 plus bank transfer charges. But if you wish to make serious savings on international money transfers you could contact Syed Ali of the Foremost Currency Group, who has a banner advert on our site
www.propertiesumbria.com.
So now, it really is time to - %$£* -, or get off the pot.
Currently US money has fallen to $1.00 to € 0.73 or, the other way round € 1.00 = $1.36, and as for those of you with pounds £1.00 now equals € 1.1, or
€ 1.00 = £ 0.90................................and falling.
“Sterling has had its worst day against the Euro in nearly a year, hitting a 3 month low but has since come back up to nearly where it began this morning. This is mainly due to worries that the UK could end up in the same mess as Greece and over concerns that the Bank of England could announce more Quantitative Easing on Thursday”. Foremost Currency Group 1 - 3 – 10
Look forward to meeting you in Umbria, and don’t forget to bring your remaining money with you, possibly in a brown paper bag.
Best wishes, from moderately sunny Umbria, occasional showers, flowers starting to bloom and birds beginning to arrive..........how about you?
John Tunstill
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