In addtion the the VAT changes, would be good to know your (PS's) thoughts on how the exchange rate of GBP to CZK is going to affect the market for investors wrt. to demand and costs. I have heard that the introduction of the Euro is delayed, however the currency has strengthed almost by 20% - costing UK puchasers the same amount. As well as beating the VAT date - we now have the exchange to contend with.

At least Andrew in the Czech Rep you are buying an appreciating assett, although it was good at least to put my deposit down last year.

My Apartment will probably complete mid 2009, however - I did the smart thing a bought 8k GBP of Krona at 40.5. So in the short-term I'm not affected. The project is delayed, however this has worked well given the growth rate in Czech. If the currency drops below 30 and then starts moving in the opposite direction I'll be tempted to just take the profit from the currency fluctuation and re-buy later.

In any case, I thought an article would sit well alongside the VAT articles.

Hi Andrew

I've just spoken to Nigel Hodges, at Currency Solutions, who tells me the weak pound against the CZK is a short term trend which is set to continue.

There are predictions the the £/Euro rate could fall to 1.20. This will have an impact on the £/CZK rate, which may go to 32 or even 31.

The way to try and reduce the effect of any currency drop is to fix forward your exchange rate. This is a method where you purchase your currency, in advance, at the best possible rate, which is then fixed.

Nigel is happy to chat this through with anyone if they want to give him a call.

Thanks - Andrea, Deputy Editor

None of the PS deals I have been involved with have a fixed completion date so fixing the currency could be problematic if the developer requests the money early. For example payment for one of my developments was requested 3 months before completion. Flexible arrangements are available but only for major currencys in the case of Currency Solutions. HIFX were more flexible but the rates are not as good.

Is there any update on the VAT increase to 19%, is it still due to happen in Jan 2010?