The euro's performance on the financial markets is taking a hit as a result of continuing financial uncertainty in Europe.

According to foreign exchange specialist HiFX, the single European currency is trading at a four-year low against sterling right now.

Organisations looking to transfer money online between a eurozone country and the UK may therefore need to arrange a currency comparison in order to find the most favourable exchange rates.

Jason Gaywood, director at HiFX, has attributed this development to a number of factors, such as Francois Hollande's victory in the recent French presidential election.

"President Hollande has demanded a renegotiation of bailout terms for troubled EU members to increase the emphasis on growth rather than cutbacks in spending," he commented.

Mr Gaywood said this means France is putting itself on a "collision course" with Germany, which has so far insisted that the terms of the current European Fiscal Pact "be respected and maintained".

Uncertainty is also growing in the wake of the recent Greek election, the outcome of which was indecisive. Talks on putting a coalition government failed, so a caretaker administration will take charge until voters go to the polls again on June 17th.

Mr Gaywood noted that the Syriza Party opposes the austerity measures that are currently in place in Greece, which means that further conflict with the EU could arise should it secure an overall majority in the election.

"We are now in a catch 22 situation – if the EU stands firm and Greece defaults, its ejection from the euro will lead to a contagion risk," he commented.

Mr Gaywood predicted that Italy and Portugal could be among the first to pull out of the single European currency, along with the Republic of Ireland and Spain.

The Bank of England has warned that the eurozone seems to be "tearing itself apart", while it expects the turmoil to hit economic growth in the UK for some time to come.

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Ongoing uncertainty regarding Greece's political future is leading to tensions in the financial markets, a foreign exchange specialist has said.

Talks on forming a coalition government have so far come to nothing following the country's recent election, while speculation about Greece pulling out of the euro is continuing.

According to HiFX, this is making investors around the world increasingly jittery, which could impact on online money transfer activity in the coming days.

Chris Towner, director of FX advisory services at the group, commented: "The market seems tense as though bracing themselves for something to happen, but not sure what it will be. Volatility is therefore expected to increase."

He believes it is currently too early to predict whether or not Greece will stay part of the single European currency. This, he said, is because any positive outcome of talks on putting a government together will merely put the country's alarms on amber rather than red.

Mr Towner argued that Greece is in a "downward spiral" at the moment, which means pulling out of the euro may be its "only alternative". He described the country as small enough to manage an exit from the currency in an "orderly fashion" and said this move could potentially strengthen the European Union.

However, he warned that if Greece pulls out of the euro, it may set a "dangerous precedent" for other European countries, many of which are much larger and therefore too big to bail out.

Mr Towner added that Greece is putting party politics above the best interests of the country at the moment. Furthermore, he suggested Greece appears to believe the European Central Bank may be bluffing about not handing over bailout money if a government is not formed.

Coalition talks have stalled so far because the Democratic Left party has ruled out the possibility of forming a coalition with pro-bailout parties unless Syriza is part of the union. However, this party opposes austerity measures, which could put it in conflict with the European Union.

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Foreign property investors are increasingly looking for opportunities in the Brazilian market, an expert has noted.

According to Paul Collins, editor of the BuyAssociation website, the north-east of the country is proving especially popular with real estate buyers from overseas.

Natal, for instance, was said to be attracting lots of interest, partly because it is a very popular holiday destination.

As a result, investors who transfer money online to purchase a property in the region could be able to cash in on strong demand for rental accommodation in the area.

"This region is the focus of residential tourism in the country and is attracting visitors and investors worldwide," Mr Collins commented.

He noted that the appeal of north-east Brazil to foreign property buyers is being bolstered by strict planning regulations that have been put in force.

Indeed, Mr Collins said the government has recently been trying to make sure the area does not end up getting overdeveloped and populated with too many buildings. He stated that these efforts "seem to be paying off".

Brazil has been generating lots of interest across the globe as it is currently gearing up to stage two major international sporting events. The World Cup will be hosted in some of the country's biggest cities in 2014, while the Olympic Games is coming to Rio de Janeiro two years later.

This has prompted authorities in Brazil to step up their investment in its infrastructure and amenities, so it is able to deal with a surge in visitor numbers and offer the facilities many people from overseas would demand and expect.

Mr Collins was speaking shortly after Dan Johnson, managing director of The Move Channel, noted that Brazil is proving especially popular with lifestyle buyers who are keen to purchase a holiday home – an indicator that its investment potential is an added bonus rather than a core priority for many people.
 

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Overseas property buyers could benefit from investing in a eurozone country sooner rather than later, an expert has suggested.

According to Marc Da-Silva, founder of PropertyJournalist.com, the financial bloc looks "extremely fragile" at the moment. Indeed, he said conditions in countries such as Ireland, Greece, Spain and Portugal are likely to continue impacting negatively on the euro in the coming months.

Nevertheless, he believes that if people in the UK are in a position to purchase a second home within the eurozone, the conditions may be right to buy at the moment.

"The pound sterling has been low for quite some time – about three-and-a-half years," Mr Da-Silva observed.

"We haven't quite reached the heights we were at four or so years ago, but things are definitely improving for the pound – I really expect the pound to improve further."

Foreign property buyers may therefore benefit from arranging a currency comparison in order to benefit from the best exchange rates when transferring money.

Mr Da-Silva predicted that the pound could possibly reach about 1.26 or 1.27 against the euro in the near future. This, he stated, might make purchasing a property in a eurozone member "even more attractive" to buyers from the UK.

"Now is looking like an increasingly good time to buy," Mr Da-Silva added.

This could partly explain why destinations such as France are still attracting lots of interest from British investors. According to recent figures from HiFX, the country was the most popular destination among Britons who were planning to purchase a foreign property during March.

Indeed, France was the first choice of 35 per cent of people in the UK throughout this period, while 16 per cent looked towards Spain. HiFX also noted that other established markets in Europe such as Italy and Germany attracted a lot of interest at this time as well.

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The UK's economic recovery may start to gather pace next year, new estimates suggest.

According to the National Institute of Economic and Social Research (NIESR), Britain's economy is currently very weak. Indeed, the Office for National Statistics recently confirmed the UK is experiencing its first double-dip recession in more than 30 years.

NIESR has stated that while the country is not experiencing a "sustained recovery", conditions may start to improve from the start of 2013 onwards. The organisation said "more robust growth" is likely to be seen from this period, with a "sustained period of above-potential growth from 2014".

Of course, the amount of foreign direct investment in the UK and online money transfer activity between Britain and other countries depends to a great extent on global economic conditions.

However, NIESR is confident that the worldwide economy will also pick up over the coming years. Estimates suggest that 3.7 per cent and four per cent growth will be seen around the globe in 2012 and 2013 respectively.

"In 2013, we will see some rebalancing of global growth, as the euro area recovers somewhat, growth picks up further in the US and China continues to slow," it commented.

NIESR added that while the ongoing financial crisis in the eurozone will eventually be resolved, the area is likely to go through a mild recession. Economic expansion is expected to be inhibited by continued fiscal austerity across the continent, although the group believes existing structural problems are likely to remain an issue in the medium to long term.

However, the outcomes of recent elections in Greece, France and Italy show that the austerity approach is not going down well with voters. Furthermore, the governing parties in the UK's coalition government fared badly in last week's local elections. As a result, many businesses and investors may be expecting to see a new fiscal approach adopted throughout the continent in order to win back public support.
 

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People who are planning to purchase a property in another country have been urged to inspect it firsthand before handing over any money.

According to Brett Alegre-Wood, the founder of Your Property Club, the best thing a foreign property buyer can do before committing to a purchase is carry out lots of research. This, he said, means it is worth physically checking out a residence they have their eye on, so they can see for themselves whether it suits their needs.

"It is worth paying for an air fare and seeing the place before buying anything," Mr Alegre-Wood commented.

Foreign property investors were also advised not to depend too heavily on what is said at an exhibition. Indeed, Mr Alegre-Wood stressed that these events are specifically designed to stir people's emotions and make them believe a home really is as good as the promotional literature suggests.

However, he said people are often swayed by their feelings when it comes to buying a property abroad, despite the huge financial implications.

Mr Alegre-Wood added that since overseas property exhibitions often have legal experts on hand, they are "set up to make you buy" straight away. He warned that this is "never a good thing", as people should not "just jump into it".

This backs up recent advice from Paul Collins, editor of BuyAssociation, who urged foreign property buyers to do their homework before transferring money and committing to a deal.

He said this is especially important for those who have their eye on Spain, as recent economic problems mean buyers have the luxury of being "aggressive" with their offers and "very picky" when it comes to finding the right residence. Mr Collins added they need to carry out all the tasks they would undertake if they were purchasing a property at home, such as making sure all the necessary legal checks are done.
 

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Foreign property buyers who are looking to collect strong returns on their investment have been pointed towards Morocco.

According to M2Morocco.com, many property investors have been able to collect healthy yields in Marrakech in particular.

Nik Kapur, senior consultant at the group, said this is because the city boasts a particularly strong rental market. Indeed, he noted the shortage of hotel rooms in the centre of Marrakech means there is considerable demand for short-term rentals at the moment.

As a result, property investors have been able to transfer money from the UK to Morocco and cash in on this trend.

Mr Kapur stated that the real estate market in Marrakech is growing right now, which means property owners could benefit from capital appreciation over the next few years.

He identified the city as the main hotspot of activity in Morocco among overseas property buyers, as it is the country's "fastest growing" area and an increasingly popular holiday destination.

This, he noted, has led to authorities stepping up their investment in its infrastructure, thereby enhancing its appeal to foreign nationals even more.

"A new train station and airport terminal were recently opened and there has been a steady increase in the amount of tourist arrivals," Mr Kapur commented.

He added that these have been complemented by new motorway connections to other major destinations, such as Agadir and Casablanca. Mr Kapur said this means Marrakech is now the "perfect hub for travel to other parts of the country".

This comes shortly after he advised overseas property buyers that Morocco is the "most stable" country in north Africa. Indeed, he noted that while places such as Tunisia and Egypt have recently gone through massive political turmoil and upheaval, Morocco's leader is very popular and viewed as a moderniser that has introduced "much-needed reform".

Mr Kapur said that this, combined with its growing economy, means it is a particularly good destination for foreign investors to consider.

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Property investors around the world appear set to continue looking towards London, despite Britain's slip back into recession.

The UK is now in the grip of its first double-dip recession in more than 30 years, following last week's news that economic output dropped by 0.2 per cent between January and March 2012.

But Liam Bailey of Knight Frank believes this is unlikely to put real estate investors from overseas off transferring money into established markets such as London.

This, he stated, is because the fundamentals that first drew people from other countries to this location are unchanged, despite the negative economic figures.

"Demand from foreign buyers has been strong for the last two or three years," Mr Bailey observed.

"Even though the pound has recovered some ground against the euro, that has still not stopped foreign buyers from coming into the market."

Mr Bailey argued that demand from real estate investors based outside the UK is "holding up pretty well" and looks likely to keep doing so for the foreseeable future.

He said this is partly because they are confident in Britain's long-term investment potential, which means short-term shifts in gross domestic product (GDP) will not heavily influence their perception of the market.

Mr Bailey added that although the economy is back in recession, the latest set of GDP figures are not substantially different to those that have been seen over the last few years.

"It is just more of the same really on the GDP side," he stated.

This echoes recent comments from MyLondonHome, which said rising unemployment and limited mortgage lending in the UK will also fail to deter foreign buyers from investing in the capital. Indeed, managing director of the organisation Steven Herd said it is "optimistic" about the outlook for this year and expects the value of property in London to go up.

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British nationals who have set up home abroad have revealed what made them decide to pack up and leave.

According to research by NatWest International Personal Banking (IPB), the majority are heading abroad in order to enjoy a better lifestyle. Indeed, 81 per cent of expats from the UK cited this as their primary motivation.

However, the study showed that many other factors are also driving migration around the world.

For instance, NatWest IPB found that more than two-thirds of expats left the UK in order to take up a job offer. Meanwhile, over a third emigrated because their partner had to move abroad and 11 per cent wanted to join their family.

In addition, nearly one-quarter of respondents said they had become disillusioned with living in the UK, and almost one in five stated they chose to study overseas.

The traditional image of a British expat is one of a well-off retiree enjoying the quiet life in places such as Spain, but the findings show Britons who live abroad have all sorts of reasons guiding their decisions. As a result, international money transfer services are likely to remain in high demand from a wide variety of people who are living out of the country.

NatWest IPB found the majority of expats are integrating well into their new home, with 69 per cent embracing the country they now live in and all of its customs.

Therefore, many do not regret their decision to leave the UK behind, with 87 per cent saying it was the right move for them to take.

Dave Isley, Head of NatWest IPB, commented: "Expats are continuing to boldly move abroad and are experiencing new cultures, traditions and customs. Over two-thirds are successfully immersing themselves in their new society which is hugely encouraging.

"Integrating with local communities is key to making the most of their move."
 

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Digital technology has fuelled all sorts of innovations in recent years, from the ability to transfer money online from country to country to communicating with people on the other side of the world in real time.

This means that while many people who have opted to move abroad may once have felt isolated from their friends and family back home, this is not as much of a problem today.

Indeed, research by NatWest International Personal Banking (IPB) has found that innovations such as Skype and Facebook are enabling many expats from the UK to stay in regular contact with their loved ones. As a result, they are less likely to feel out of the loop and homesick than people may once have done in previous years.

Dave Isley, head of NatWest IPB, commented: "Whilst moving abroad either to work or retire used to mean missing those milestone family events, the reality is that technology has lessened the extent of the emotional trauma or guilt of not seeing an important family event."

Indeed, he noted there is a "plethora" of online resources that are now available and have made it much easier for British citizens to relocate to another country without losing touch.

According to figures from NatWest IPB, 68 per cent of the expats it surveyed in 2008 cited missing friends and family as an issue for them.

However, just 47 per cent gave the same response in this year's poll – a reflection perhaps of the growing popularity of online tools and increased connectivity around the globe. Google documents were also said to be widely used by expats, along with Twitter, Picasa, webmail and YouTube.

Nevertheless, the poll did show there were some things about the UK people miss when they have relocated overseas, such as its television, groceries and pubs, as well as the British sense of humour.
 

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