What will happen to the Euro After Brexit?

The Euro has always been considered to be a safe bet during global economic turmoil. However, like yen, it is facing a fall from the graces. The Chinese yen fell to its 5 years lowest in September 2016. The move is being seen as China’s policy to combat foreign reserves and bring in stability. However, in a stark contrast, the Euro seems to be losing its sheen following the aftermath of the Brexit vote. Although the value of Euro fell sharply by 4.7% the day following the Brexit vote, it has since recovered quite well.

Effect on Pound

The most pronounced effect of Brexit was seen in the value of pound depreciating. In fact, the pound sterling has fallen to $1.20-$1.25 recently. Both Euro and the sterling continue to plummet despite efforts by the European nations to keep them afloat. The main reason seems to be an insecurity in the investors. However, the main hitters of the problem are going to be tourists in the coming festive season. Airports are already reported to be short changing the pound against the euro with less than the 1:1 ratio which was the usual go to before the Brexit decision. In order to combat this, the financial experts are advising on changing your sterling to euro online before you leave for your holiday.

Russia behind the Euro

Good news, however, came from an unexpected quarter, with Putin openly declaring that he is going to support with the comeback of the Euro this move was a direct effort on the Russian President’s part since 40% of Russia’s foreign reserves are directly stored in Euro. As Putin has said, he is looking for a consolidated Eurozone in order to have the Euro strengthen further. A smaller 19 member Eurozone is definitely likely to benefit with a few like-minded members working towards a more focused community.

Brexit and the Euro

A major factor that is going to influence the prices of Euro in the foreign market is Scotland’s probable decision to leave the Eurozone as well. The process is likely to be messy, with Scotland looking at a 2 year period of moving out if it does vote to do it. This is going to put further pressure on the pound sterling. However, any more countries deciding to leave the zone will put a heavy pressure on the Euro, with a 1:1 parity with USD and Euro breaking down. This will likely cause a domino effect in a host of other currencies around the world as well. Moreover, the Euro forms 57% of the US Dollar Index, meaning that the EUR/USD exchange rate and the US Dollar Index are at the same levels. However, this parity is being strained to its limits because the British Pound comes right after Euro and Yen, to be the 3rd largest component of the Index.

Italy: Europe’s Problem

Following the aftermath of Brexit, the Italian prime minister, MatteoRenzi hinted at a bank recapitalization in order to bring his country’s economy under control. This was a problem that followed a decade in the making with wrong decisions and wore financial steps taken by Italy. In fact, at present, Italy has more than $360 billion of Non-Performing Loans (NPL) under their belt. While the solution to this in the past was mainly more capital, as of 2016, a new rule for bailing out has been abolished. This means that Italy is looking at a strong motion to consolidate its economic ties by relying on the taxpayer’s money only as a last resort. While this would have been better in other countries, most of the debts from the Italian banks (45%) are directly owned by retail owners, who are, ironically, the ones who are being tried to be protected by the move. Further moves by the current political regime are expected to hit very soon with new policies. Let us hope that these will be a lifesaver for Italy in the short terms and for the whole Eurozone in the long term.

The Aftermath

Despite concerns about the fall in Euro’s rates, the Eurozone has weathered UK’s decision to leave. The reason is manifold, but main reasons are:

  • A consistent growth rate in Germany
  • France returning to better positions for growing

France saw a growth in the private sector in the recent months with the IHS Markit purchasing managers’ index going up from 50.1 to 51.6. This indicated an increase in activity, with the best growth rate in 10 months. Similarly, while Germany was going through a slump in the services sector, the employers compensated this with high export growth rates. Don’t leave your investment strategy too late. Talk to one of the experts at this site about investing with binary options. And get your financial calendar information from markets.com

In conclusion, we would say that the Euro, while not as strong as it was in the pre Brexit days, still continues to be a favorite in the economic world. This is primarily due to the resilience shown by the various members of the participating states in keeping the market buoyant. While the European commission’s consumer confidence indicator did lower by 0.6% to -8.5 in August, experts hold that this is well within permissible limits.

How to Finance Investment Property with Loans from Family and Friends

Would you like to buy an investment property? Do you believe it’s unobtainable because you cannot qualify for a mortgage? Well, you’re not alone. There are millions of people in the same predicament. There is a method of financing real estate, however, that bypasses the rules and regulations of banks. There is nothing risky, questionable or untoward about this method. It could not be simpler, and it is this: borrow real estate investment funds from private individuals. In real estate circles this is known as private money.

There are a number of advantages to borrowing private money for your real estate transactions. For one, you don’t have to deal with all the time-consuming procedures associated with processing a bank loan; no arbitrary rules, no complex paperwork, no faxes – in short, no hassles. Moreover, there are no loan origination fees, and a private mortgage will not show up on your credit report. This will free up your credit for other purchases. The best advantage, though, is that you get your money quickly and therefore never have to miss out on a great deal. In real estate, the early bird gets the worm!

Potential sources of private money are endless. Once you get some experience, you may consider conducting seminars as a way to attract prospective lenders. When first starting out, however, it is best to approach family, friends and acquaintances. Prospects also include neighbors, co-workers, and service providers such as mechanics, hairdressers, and doctors. The need to develop and solidify these relationships cannot be overstated. For once you develop a track record and win the trust of lenders, they will not only refer more lenders to you, but also will bring you deals on additional properties. Your pool of private money sources and real estate deals can be interminable.

How does one develop successful relationships with private lenders? How do you persuade them to pony up the cash? Your first and most crucial step is to write up a business plan. This document will serve as a road map and communication tool for your real estate investing business. It should include fundamental information such as the amount of money needed, the expected rate of return, the profit potential, and when the loan will be repaid.

Your verbal communication skills play just as important a role as your written document. This is your opportunity to make a memorable impression and persuade your prospective lenders of the benefits they will enjoy by investing with you. Tune them into everybody’s favorite radio station – WIIFM (What’s In It For Me) . Emphasize that your real estate investment property will yield higher interest rates than their retirement or savings account. And assure them that their money is secured by the underlying real estate.

Private money is a viable alternative to conventional methods of financing real estate investment property. You get your money quicker and without all the hassles associated with a conventional mortgage. Your family, friends and circle of acquaintances can be an endless source of funds. Armed with an excellent business plan and persuasive communication skills, there is no end to the relationships you can cultivate – and by extension money you can raise – to make your dreams of owning investment property a reality.

Supporting a Private School: Worth the Investment?

Whenever you plan to support a school and fund its education, it is always in question whether it is worth the investment.

Supporting a school ideally means helping the schools financially in order to impart quality education to the students. And especially private schools require enough financial support to maintain its students, classrooms, school infrastructure and teachers apart from other expenses and activities.

There are many associations, organizations, specific groups and funding agencies that support schools in economically poor and rural areas to improve the standards of education. Schools with poor infrastructure and financially deprived are identified, evaluated and funded accordingly.

Support is rendered not only by providing funds but also by providing infrastructures like furniture, game accessories etc apart from financial aid like fees, enhancing image of a school, books, teaching aids etc.,

Other vital expenses include fans, light, furniture, classrooms, funds, computers and other extra curricular activities like quiz, debates, talent competitions, tree plantations etc.,

And of course, there are some scholarship schemes provided for those deserving students who fare well in their exams. The support for these students are either monetary or by any means which can help them to enhance their studies.

Some other alternative funding sources involve local governments. Government has access to external funding sources for any particular programs. And it is possible for non-profit organizations to get funds to support schools that even districts cannot access.

To put it together, private schools have to search for organizations, local partners and other funding bodies for their support and financial requirements apart from other facilities and benefits. Districts and government bodies also need to be committed from the beginning and open many centers and facilities!