July 18th, 2016 11:02 PM by Linda Holley
The Global Business Council of our Realtor Association had a panel discussion about the United Kingdom's (UK) withdrawal from the European Union (EU), referred to as BREXIT. Britain voted to leave the EU, and the Scottish public voted to remain, which could lead to the breakup of Great Britain. The EU has lost one of its largest members, and this could affect the future value of the Euro. The new British PM, Theresa May, has 3 years to negotiate with the EU, and Parliament is urging her to start these talks this summer.
From June 22-July 13, 2016, exchange rates for the pound is 20,046 less for an investment of $250,000 US dollars. For Florida’s UK real estate investors: as soon as you put your Sarasota home on the market, see a tax attorney immediately and try to get a reduction in your foreign tax withholdings, FRPTA, at closing.
How will BREXIT affect real estate in UK? It is estimated that UK property values may drop between 5-10% for 1-3 years. If businesses that are mostly in London leave for Europe, then the value of commercial properties will decline. But if the pound goes down compared to the US dollar, then US and other foreign investments may increase. It may be time for US to invest in the UK!
Our British friends vacation and retire in Sarasota County because of our wonderful Florida beaches and sunshine. Those who are planning to buy homes and retire on the Florida gulf probably will. That may not be the case for tourists who fly “across the pond” because the decrease in the pound may affect their travel plans. They may choose to vacation in Spain or France rather than come back the US for economic reasons.
Visit my home page at www.PalmerRanchLindaHolley.com for helpful information about buying and selling Sarasota real estate.
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