Global Asset Allocation and Overseas Property Seminar
Date: October 20, 2018 (Saturday) 13:30
Address: 28th Floor, Tower B, China Resources Building, No. 6A Shandong Road, Shinan District, Qingdao
Hotline: 400-138-2929
Since the beginning of this year, the euro exchange rate has experienced a significant surge. On September 18 (local time), the euro-to-CNY exchange rate broke through the 1:8 mark for the first time, marking the best performance for the euro in nearly five years and bringing the year-to-date increase of the euro against the CNY to 13%.
Based on the spot selling rate, the lowest point for the euro against the CNY this year occurred on May 30, 2018, at 7.4434, while the highest point was on September 26, 2018, at 8.1165, representing an appreciation of 0.6731, or a 9.04% increase. This means that clients who invested in European real estate back in May have already made substantial gains from the exchange rate alone, not to mention any asset appreciation.
Taking Greece as an example, if an investor purchased a property in Greece for 280,000 euros on May 30 of this year, they would have already made a net profit of over 200,000 CNY based solely on the euro exchange rate, without even considering the increase in property value.
Trend is King: The Euro Continues to Rise, Invest in Europe Early
Many industry insiders believe that the strengthening of the euro is not unexpected and that there is still room for further growth. According to European economic forecasting agencies, the euro-to-CNY exchange rate is expected to continue rising over the next month, potentially reaching as high as 1:8.31 in October. The agency predicts that the euro-to-CNY exchange rate will remain above 1:8 for the next two years, and by 2020, it is expected to break through 1:8.75, with the possibility of even reaching 1:9.
"Trend is king"; the strong appreciation of the euro is an irreversible momentum in the near term, so it is best to invest in Europe early. In the European investment market, the speed of the current real estate market warming is directly proportional to the upward trend of the euro exchange rate. Among them, properties in European countries such as Greece, Malta, Cyprus, Portugal, and Spain are highly favored by investors. With the steady recovery of the European economy and the boom in the tourism industry, which has driven the short-term rental market, European real estate has become one of the preferred methods for investors to allocate overseas assets.
Coupled with the support of the property-based immigration policies launched by the aforementioned European countries, investing in real estate allows one to obtain a permanent residence visa or EU status, gain capital appreciation from the rising euro exchange rate, and enjoy the superior education, medical, and pension benefits of European countries—achieving multiple goals at once.