Breakdown of Exchange rate UK Pounds & US Dollar to Colombian Pesos since May 1999

CakeDesigner-wannabe says on May 8, 2009, 13:56:

2004 is the year British people should have paid for property, while 2003 is for USA people ............

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kenblanquito says on May 8, 2009, 14:29:

cakedesigner, good information and in principle a good idea, but it does not show monthly fluctuations (which I appreciate would be a lot of work to compile) and at times the yearly average exchange rates between Pounds Sterling and the Peso do not reflect the enormous differences between the peaks and troughs.
When we purchased our first property in Colombia in September 2004, we were receiving about 4600-4800 Pesos to the Pound (which we needed to withdraw by visa card as we had no bank account at that time in Colombia), which corresponds quite well with the 4830 that you have quoted. I would guess that currency fluctuations at that time were minimal.
In February 2007, we purchased another property and had the money transferred electronically from the UK by the SWIFT method and received 4600 Pesos per Pound. I remember following the exchange rates almost daily during that era and we were SO lucky; the Pound must have peaked that day after which it began to slide.
It just proves how trends can be dangerous in terms of currency fluctuations and if one is thinking in the future of making large money transfers to Colombia, a 30% tolerance in exchange rates should be allowed for. Especially if one is selling a property abroad in order to purchase something here, when the process can be quite long-winded.
The information given by cakedesigner is very valid in terms of displaying what is possible between 2 currencies over a number of years and is very useful, or worrying, if one is trying to determine how far a European or American pension will go in terms of providing you comfortably for the future. Worrying!
Thanks a lot and all very valid, regardless of the more negative comments that I made.

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CakeDesigner-wannabe says on May 8, 2009, 14:46:

You can look at monthly if you write on http://www.xe.com/ict/
I had checked all 8th May (today's) and did it each year to look.

I wish I had paid property around the same time you purchased, but I started to get interested in Colombia only 18 months ago ...

I am taking a risk to see whether the PESO will go up or not.

If I look for $165,000,000 house today (3,365,000) compare to 2004 (4,830,000), I would have lost £15,000 if the house prices do not change.

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jimmymcc says on May 8, 2009, 15:51:

thanks for the posting, for once I did somehing right.since I bought my apt it has gone up by £12k
Happy Days.

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kenblanquito says on May 8, 2009, 17:04:

It is all about being at the right place at the right time and having the money available too. Wifey and I decided to sell our property JUST in time in the UK, prices had levelled out during the latter part of 2006. Up until that time, we had rented it out but we then made the decision to live in Colombia full-time, rather than just escape October to April in the UK. Luckily, that possibility had been in the air for some time, so on my previous UK trip, powers of attorney were set up for my brother to sign the majority of the paperwork in our absence.
cakedesigner, you are not the only one that I know in Colombia who wished that he had made the decision to relocate sooner. Your time will come as these things seem to work in cycles. One day, the UK will somewhat recover economically, house prices there will improve at some point and the Pound will improve against the Peso: whether it will recover to its past glory of 4800 per £ is another matter. I hope there is a marked improvement by the time I start to be eligible to draw some sort of pensions, assuming the country and the pension companies have not gone bust in the meantime.
I am sure some experts can predict better than the masses but luck is also very important.
It is hard to imagine that the Pound was worth 2.10 US Dollars about a year ago and now look at it!
All thanks to our banking organisations and their irresponsible lending policies.

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Londoner says on May 8, 2009, 19:27:

kenblanquito The information given by cakedesigner is very valid in terms of displaying what is possible between 2 currencies over a number of years and is very useful, or worrying, if one is trying to determine how far a European or American pension will go in terms of providing you comfortably for the future. Worrying! I totally agree with these comments.I was fortunate to have bought in Colombia in 2004 and am sitting on a paper profit,but since then the cost of living has gone through the roof.You can,t make plans to retire on European or US pension in Colombia.You need some income in Pesos also as a hedge against currency change.

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CakeDesigner-wannabe says on May 8, 2009, 19:28:

The pound against dollar is getting better now than it was 2 months ago. At one point it was £1 = $1.39. Today it was £1= $1.51. I am looking at it everyday because I buy clothing from China for business and they sell it in US $ unfortunately!!

About buying property, I am happy to buy it at least 3,500 peos - that is my plan but if it goes up to at least 4,000 - that would be much better.

$165,000,000 property in Cali or $250,000,000 in Bogota is my main target. I am not plan to buy an apartment until next summer, 2010, but if the xchange rate does not improve, then I m happy to wait and at the same time, my fund will grow (= more savings).

$165,000,000 = £47,000 (£1 = $3,500) for a 150 sq m apartment in North Cali. I already fund to buy a Colombian property. I started saving in January this year. I have £10,000 now.

By the time next summer, my fund will be £30,000, but the question is, will the exchange rate agree with me. If so, I will buy it for £30,000 plus fees which leaves me another £17,000 (loan).

But if the exchange rate does not agree with me, assuming the price of the property does not go up or down, I will continue to save money until the exchange rate agrees with me which means LESS loan !!

Fingers cross :)))

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CakeDesigner-wannabe says on May 8, 2009, 19:33:

Azzman, who asked you to read it???

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kenblanquito says on May 8, 2009, 20:27:

londoner, my point entirely, perhaps badly expressed-problem when one is writing in English but listening to Spanish in the background-one can lose the plot or appear to!

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kenblanquito says on May 8, 2009, 20:35:

Why the hostility over the UK exchange rate? There are Brits in Colombia too, not only Americans. OK, we are probably outnumbered 10 to 1 but does that mean that we are banned from the site or our opinions are never worth reading? Come on, cool it! We do not complain about reading about the Dollar every day.
One day, we will be talking Euros anyway!

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Londoner says on May 12, 2009, 13:44:

I have friends in London with properties in many different countries,all are suffering at the moment because the pound is so low.Ain,t nowhere cheap for us Brits right now.

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kat1 (Moderator) (Trustee board) (☼Travelguide writer) says on May 12, 2009, 14:11:

kat1 (Moderator) (Trustee board) (☼Travelguide writer) says on May 12, 2009, 14:12:

CakeDesigner-wannabe says on May 12, 2009, 15:47:

Thanks Katie1 :)

Living in Wales is much cheaper than in South of England :))


Johnny

Pleased with today's £1 against US$. £1 = $1.52 about time......... hope it goes up all the way ........

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Londoner says on May 12, 2009, 18:18:

Johnny,that probably explains why I,ve been feeling stretched for quite some time in Colombia.

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fecherklyn says on May 12, 2009, 18:29:

So what are the prospects for the US$ and sterling? This has been discussed so many times on PBH that it must be a record-holder...but it is a worthy subject as it tends to determine the financial status of so many of us AND the factors that determine the trends change frequently.

For instance the Japanese Opposition Party said yesterday that if they came to power they would NOT purchase US Bonds denominated in US's but would accept bonds denominated in Japanese Yen. This announcement closely follows a similar warning from China.This I see as the expression of a mounting sentiment of countries who no longer want to take the RISK of American debt labelled in $'s. This must be very worrying for the USA in THE LONG TERM but they are probably happy enough to pursue a "weak dollar" policy for the moment until the world's economies improve.

Similarly, the UK economy is in a very bad state and will have a debt problem for the generations to come.

In my view the Colombian Peso will, at worst, maintain its value in the long term against both the US$ and Sterling as both currencies slowly but surely lose their dominant currency trading positions.

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Londoner says on May 14, 2009, 18:00:

There is an Uribe factor supporting the Colombian peso.I estimate this to be around 15%.If anyone is stupid enough to vote him out,watch the peso fall and fill your boots with Colombian property.

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