Buying Property in Cyprus

Readers Question: Hello, I found your column an interesting read how ever with some concern to my myself.
I’m currently in a contract terms with buying a property in Cyprus. The property is valued at 153,774Euros and is due to complete by the 30th June 2008.

In today rates the current price in sterling would around £123,500 to buy, however with the pound continuing to fall, how long do you forecast it to continue?

Is it likely to pick up in time for me make some saving on the current exchange rate and reducing my outlay?

I think in a case like this, I would not advise waiting in the hope that the Pound may appreciate against the Euro. As I mentioned in this post, there are many good economic reasons why the Pound is weak against the Euro. I believe it is more likely the Pound will fall further, although I don’t think it will reach 1 Euro to 1 Pound.

To be honest, it is always difficult to correctly predict exchange rates; even the top currency dealers will get it wrong on many occasions.