Exchange Rates and Domains

[Duckinla]

Since the British Pound now buys 2 US dollars, logic would indicate that high-price domains would be moving out of the US and into the hands of European buyers. A $10,000 domain that once cost about 7,000pounds now costs about 5,000pounds. When rates change and the dollar will buy more European currency, we should see the reverse happen and those sellers should clean up nicely. Is anyone seeing this happen at all?

 

[dolansco]

 

[Theo]

The Brits already own half of Florida real estate Is the British pound indefinitely outside the Euro system or is there a preset date that the UK will join the Euro-zone?

 

[Duckinla]

The Brits already own half of Florida real estate

It would make sense that collectibles and tangible investments are heading to European owndership...since they are buying at a discount. It probably also explains the big price gains in things like domains, artwork, classic cars, etc. Dollars are much cheaper to Europeans than to US citizens right now.

 

[dolansco]

Indefinately .... ( regards £ v € )

 

[Theo]

Duck, I know. When in Greece, eating out costs a damn fortune.

 

[dolansco]

I have bought property in Fla. , we look at it as discounted by 35%+ .. and also prices are deflated at the moment which is best time for speculators to be on the lookout ...
It is reckoned that property will fall for the next 2 years ... then stabalise ( 2009 ) , then may rise again in 2010 . ( in Florida )
---- But as always , forcasting is just that ... forecasting / guessing

We see the value in the currency ... which we expect to get to parity at some stage in next few years or at least $1.10 per €uro.

 

[Theo]

Florida property is already inflated by 50%. My house was bought for $100k in 2001, was sold twice that amount in 2005. Right now, the property flippers are sitting on large amounts of inventory. Construction has slowed down. Condos remain empty as ghost buildings.

About domains - wow, I managed somehow to pull myself back on-subject - it makes sense that more UK-based corporations and ivestors would offer $$$$ for virtual property. The pound and the euro buy more dollars. That's the way of the FOREX

 

[dolansco]

Florida property is already inflated by 50%. My house was bought for $100k in 2001, was sold twice that amount in 2005. Right now, the property flippers are sitting on large amounts of inventory. Construction has slowed down. Condos remain empty as ghost buildings.

Kind of my point .. property market is cyclical ... and historically always goes up.

But back to topic indeed ... Cheap dollar is great for us as buyers of everything from USA.... especially in the hope that parity ( or close ) between $ and € is attainable

 

[BLazeD]

Aside from the fact that nearly all parking revenue, adsense, whatever, is in $USD...

 

[Duckinla]

Aside from the fact that nearly all parking revenue, adsense, whatever, is in $USD...

Yes, it won't effect revenue domains, only speculative domains.

I was thinking Ebay could be info for a great case study on exchange rates. I'll bet in collectibles in particulars, more and more auctions are being won by Europeans rather than US bidders because the cost for US bidders is so much higher.

How does the pound equate to the dollar as far as salary? If the average US salary is something like $35,000, what would the average UK salary be in pounds? Anyone know?

 

[lukeeales]

I think around £20k is the average UK full time salary.

 

[BLazeD]

With the $US being so weak right now, I will probably try and keep all my earnings in my Paypal account and either ride out the storm or re-invest the bulk of it. It doesn't make sense either withdrawing it to Thailand or New Zealand right now.

 

[Theo]

We're sorry, your seat price has just gone up

 

[DNP]

Cheap US $ is great! We like it :canada:

 

[Thomas Nash]

Yep, cheap $$$ is definitely a plus! Has anyone else noticed the recent increase in EUR auctions on Sedo to?