Worth tracking this topic for those invested or considering investing in Slovakia looks like its going to be around ~30SKK to the Euro but final outcome will be on July 8th.

http: / /investinslovakia .wordpress .com /2008 /06 /04 /301260 -is -the -magic -number/

Hi

Yes, I spotted this story yesterday.

I never envisaged that after buying an apartment in Slovakia in 2005 when £1 = 55SKK the exchange rate would drop to nearly 37.5SKK.

If the currency rates work for you this can have a dramatic impact when coupled with capital appreciation (nearly a 50% gain on currency alone).

The £ continues to remain relatively weak compared with the Euro and PLN.

Lets see what July 8th brings but I'll settle for 30SKK to a Euro.

Regards

Sanj

the current exchange rate only works in your favour if youre bringing the proceeds back to the UK, to invest here (or spend it). But not if you want to reinvest in more CEE property.

It is increasing in value against the Pound but the Euro also - so just reinvest somewhere in Euro land.

Although you would be better to invest in UK if selling Slovak property since long term the Euro will fall vs £. I would wait another year before doing so though. Better to buy in $ land since the US is a year ahead of us in terms of the property crash. So ideally .... buy US, then in a year or so ..... refinance and buy in UK.

If I was selling now I would buy gold since it is likely to appreciate against all other currencies.

The Gold vs Oil ratio is the lowest it has been since records began and since Gold usually follows where Oil leads - with a slight time lag.

Gold to the moon over the next few weeks I'd wager ..... oh ... but then I already have bet on it.

Sanj, I also have benefitted hugely in the strengthening currency of where I invested. The Hungarian Florint has surged in value by 18% so far and it has a long ways to go yet until it matches the Slovak and other surrounding new EU accession countries currency pattern.

So far I it is about 40 - 50% gain like you Sanj, but that is not how Property secrets would calcuate it ...... the ROI is massive - calcuate it from the amount so far invested - so far 20% on my first apartment. So a 40% gain (minimum) on a 100k Euro apartment where I only have 20k Euro invested.

A nice ROI of 200% minimum for this year ..... and thats just my first apartment. Thankfully I purchased in Euros - and changed all my money from £ to Euro prior to the Northern Rock situation (caused the £ to plummet) the developers must be kicking themselves, unless they negated the risk somehow.

:)