In the modern world in which we live, so many things are interlinked and integrated together, which is great in some respects and not so in others. As we have seen over the past week or two, the United Kingdom have voted in a referendum to leave the European Union, in what has been called ‘Brexit’.
Although there has been much scare-mongering on both sides of the argument, and an immediate drop in the value of the Pound, which has since recovered, it’s not all doom and gloom. In fact, for the long-term prospects of both British people and the Pattaya real estate market, the Brexit result was most probably for the better.
Is Brexit Good or Bad for Pattaya Real Estate?
If banking oligarch Evelyn Rothschild wakes up in the morning in a bad mood or gets a cold, the ripples can be felt right across the economic world. Everything effects everything in this time of integrate economies and trade. So it’s only normal that such a big decision for the British people to leave the EU was bound to effect the world economy and the Pound in some way, shape or form.
The financial whizzkids in the City of London and on Wallstreet heavily betted on Great Britain to remain in the EU and basically lost their futures bets. This in conjunction with such a big decision and the UK’s Prime Minister announcing his resignation all combined to see a large drop in the value of the Pound, which is hardly surprising. However, just days after the vote, the markets returned to normal with the value of the Pound getting back to its usual value.
In effect, this will not have a negative impact on the Pattaya real estate market. In fact, it could become a catalyst for more investments in Thailand from British companies and homebuyers.
What does this mean for Pattaya real estate investments in the future?
The problems with having one currency for several countries with massive differences in GDP, such as what we have seen with the might of the German economy against the weaker economies in Southern Europe, most notably in Greece, goes to prove you need to be able to control your own interest rates. The Euro currency has basically been weakening the strength of Europe’s largest economies while plunging the poorer nations into a state of emergency, which was the opposite of what the Euro was supposed to achieve.
Over the course of the next couple of years, the average person in the United Kingdom will be better off, and with the ability to control their own inflation and interest rates, will ensure the Pound remains stable and competitive, which bodes well for business in general, and especially the Pattaya real estate market as we can expect to see more investors from the UK.
All in all, the United Kingdom leaving the EU is a good thing for business outside the EU nations, which will give Britain more control over their alliances with other trading nations throughout the world. Keep calm and don’t panic. Trust the British stiff upper lip and just watch how positively it will affect the Pattaya real estate market over the next couple of years