Aud/gbp

[swamp]

Well London property is very overpriced. And by 'overpriced' I simply mean it is cheaper to rent than buy, even with the low interest rates we have. The gross yield (annual rent / purchase price) will still vary by area and sector, but things still favour the renter in London IMO.

To give an example, I rent at 3%.

[JoJoGabor]

[QUOTE=aussielong;970389]Maybe I should steer clear of property in the UK and just do a term depo?

I think the exchange rate will eventually come back as the UK interest rates will go up when inflation kicks in, and that will draw investers in and drive up the currency.
QUOTE]


I was reading a report this morning that they dont expect the interest rate to rise above 2% before 2014. What with continued QE, the pound is widely expected to fall, drastically in the next 12 months.

Stay clear. Keep your dollars. I've just bought a load of US dollars, but in hindsight think I should have bought gold or an Far Eastern currency instead, seeing the US dollar is also falling.

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/8317879.stm

The pound has rallied after the Bank of England said its monetary policy committee voted 9-0 earlier this month not to pump more cash into the economy.

The pound was up 1.8% against the dollar at $1.6630, and up 1.1% against the euro at 1.1087 euros.


This is good news. Makes gold cheaper to buy.

Boomed.

Only a matter of time before they realise they need to print more money and the pound tanks again, and realise a nice profit on selling up.