BREXIT! The decisions you might need to make about your money
The BREXIT, what the final outcome will be is practically impossible to predict. Will the effects of the British EU referendum be politically neutralized or, on the contrary, will the result of the referendum create a domino effect?
The only thing that is sure yet, is that things have started to move: the British Pound has plummeted and stock exchanges are getting hard blows. Even, or rather especially, banks are in the eye of the storm. Shares of these financial institutions are dropping at a dazzling speed too…
Just for the sport of it, try to withdraw a couple of thousands of Euros or Pounds from your bank account. You will see how collaboratively your banker reacts. You will practically always be asked why you need such a consistent amount. Besides, you will certainly be told that larger amounts have to be ordered in advance, that there is a daily, weekly withdrawal limit, etc. In other words, you will have to face a number of obstacles and you may have to justify yourself to get your property out of the hands of the financial wolf pack. This does not really inspire to much trust in banks.
In Belgium, a not so large private investment bank got into trouble. The government froze bank accounts of its customers to avoid a bank run. 3 days later the bank was declared bankrupt and the employees of the bank joined the other creditors, thus creating an extra obstacle for the account holders to get their money back. If you are interested, just google “Optima Bank Belgium”.
What is a good alternative after the BREXIT?
Uncertainty rules, but every crisis also brings its opportunities. What can you do best to safeguard your hard-earned savings?
One of the safest alternative investments still is real estate. The market evolution is still positive, as the downward tendency bottomed out mid-2014. Since then we see a slow but steady increase in prices, driven by the new-build market and followed at a short distance by re-sales. This means, that if you buy now and would decide to sell in five to ten years. Then you should be able to realize at least a break-even result and probably even a nice profit. Furthermore, this is an investment you can enjoy. It’s not just virtual money on an account or real money in a vault. It is your own spot in the southern sun, easy to reach with many flights available every day at very competitive prices. Besides, the marvelous climate is guaranteed 320 days a year.
If you choose to offer your property for rent, you can either earn money by renting out in the long term or just recover your yearly costs. This by putting your investment for rent for only a couple of weeks in high season.