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Old 14-02-2011, 16:12   #1
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It's About to Get Cheaper for Brits to Buy Boats in the US . . .

Thats what a friend of mine who works in the banking industry in the City of London tells me! He insists that before the end of 2011 there is a very good chance of $2= 1 British pound (just like 4 years ago)! If you consider it was as low as $1.22 not that long ago, and if he is right, it will make a lot of sense for A Brit to buy in say Florida? Todays rate is $1.61= 1 Pound!! Then, cruise the carribean for a couple of years before cashing in when the exchange rate is favorible, or stick with the boat! Im told the Brit can change a USA boat to British papers easily without much expense, BUT he would have to pay the TAX on the boat IF he returned to the EU!! We are seriously considering setting up 12-15 boats to look at over a period of 3 weeks by renting accomdation in central Florida, if, the exchange rate goes the way predicted! Thoughts! Thanks.
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Old 14-02-2011, 16:51   #2
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You are accidentally thinking about this the wrong way round.

If you buy a boat at 1.61 and the dollar ratio with the pound moves to 2 then you have lost. In order to profit you must wait until after the currency moves and then buy. Alternatively, you could buy now and hope for a movement back to 1.22.
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Old 14-02-2011, 16:59   #3
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You are accidentally thinking about this the wrong way round.

If you buy a boat at 1.61 and the dollar ratio with the pound moves to 2 then you have lost. In order to profit you must wait until after the currency moves and then buy. Alternatively, you could buy now and hope for a movement back to 1.22.


No, if i get more for my pound the boat is MUCH cheaper......i.e, if i get $2 for each pound it would mean a boat that is $100,000 would only be 50,000 pounds, however, if i only got $1.60 to the pound then the $100,000 boat would be 62,400 pounds, thats a whopping 12,400 pounds difference! At 1.60 its a good rate, if it continues to rise its an incredible rate!
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Old 14-02-2011, 17:41   #4
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Which is exactly what I said. You should not buy until AFTER the currency movement, assuming that the movement will be towards 2. Your post #1 suggests buying at 1.61 and sailing around then selling at 2. That would give you a loss.
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Old 14-02-2011, 17:58   #5
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crossed wires! Having re read my post I can see why i was not understood! I am asking what everyone thinks, if it keeps moving as it has been and goes up to $2 to the pound that would mean any boat in the USA currently on the market at $100,000 today (at $1.60 to the pound) would cost a brit $20,000 less! Are there any unseen problems I have not thought of regarding red tape, etc?
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Old 14-02-2011, 18:11   #6
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Ze penny, she 'as dropped.
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Old 15-02-2011, 13:13   #7
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Ha, Ha, you could say the $ has dropped, Ha, ha! Seriously, It does look like the pound is getting stronger though, as a brit looking at buying before the end of this year I really am thinking of spending 3 weeks in florida with a pre booked viewing list of say 15 or so boats that suit our needs! Come on pound, lets get to that magic $2! Apart from the tax if you return the boat to EU (we would change papers to british) are there any hazzards? Thanks!
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Old 15-02-2011, 13:55   #8
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Thats what a friend of mine who works in the banking industry in the City of London tells me! He insists that before the end of 2011 there is a very good chance of $2= 1
We will see, although I have my doubts. Whilst the US economy isn't great, neither are the European ones either and that includes the UK, so why the huge movement in values?

Also to move a boat from the US to the EEC requires it to be RCD which will cost a wee bit and then there is the fact that any mains electrical items will have the wrong voltage. Cheap to import, no sorry not true.

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Old 15-02-2011, 14:15   #9
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Thanks Pete, I guess we were thinking that we could then start our sailing adventure From Florida and visit all the places we want to from there (could easily take 2 years), then decide if we wanted to sail the EU which would mean paying the Tax if we brought the boat back, or maybe even sell in the US depending on exchange rates being in our favour, i.e the Dollar would then need to be stronger against the pound than when we bought! Just looking at options really! Am seeing some great boats 40'-45ft with asking prices of $130,000 which is out of our range, but at $2 to the pound would be just about in range!
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Old 15-02-2011, 14:27   #10
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Now that is different, yes buy the boat in the US and sail from there. The other point is the US is in dire straights like us, so stick in a low offer on $130k and you might need a pen to sign the purchase contract. You can only ask.

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Old 15-02-2011, 14:50   #11
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pablothesailor your banking friend must be living in fantasy land or he was one of those who played a part in the gobal banking crisis with inflation rising here in the uk and the huge cuts in goverment spending i doubt pound to the dollar will reach $1.63 it is more likely to hover around the the $1.53 to the $1.58 mark i would dearly say he needs to go back to the school of economics and with the budget due out in 6 weeks watch the markets react then
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Old 15-02-2011, 15:04   #12
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Good for you brits!

Which is why you should come over and buy our Westerly Fulmar, which will be listed shortly for 29K US! I that practically free in pounds!!!
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Old 15-02-2011, 15:18   #13
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the pound will only get slightly weaker just watch and listen to the bank of england statement on the uk economy tomorrow we currently have the second highest inflation rate at 4% (USA 1.5% ) and Gdp of 1.2% and with inflation continued to rise to the same level of 2008 at the moment only greece has a higher rate of 5.2 % and by may/june when interest rates will rise just watch the pain on the brits faces then
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Old 15-02-2011, 15:29   #14
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pablothesailor your banking friend must be living in fantasy land or he was one of those who played a part in the gobal banking crisis with inflation rising here in the uk and the huge cuts in goverment spending i doubt pound to the dollar will reach $1.63 it is more likely to hover around the the $1.53 to the $1.58 mark i would dearly say he needs to go back to the school of economics and with the budget due out in 6 weeks watch the markets react then
Time will tell if he is right or not! Lets move on, it is indeed true that the pound has strengthened very well against the $ in the past 15-18 months when it was down to $1.22 at one stage, its $1.62 today, I would like to ask the experienced members of this forum, in todays market a boat is better value price wise in the USA than in the EU? the buyer is british and would be paying in UK Pounds he would be looking at a 40-47ft solid, min 2 cabin and 2 heads (1985-95) Price, hmmm......$125,000, the buyer would then be looking to sail the next few years around the Carribean and would have to obviously change the papers to British! Is there anyone on here from the EU who has done this? Not been able to get an answer thus far which is a first on here. Thanks!
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Old 15-02-2011, 16:22   #15
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Your asking someone to value boats on the opposite side of the Atlantic from their home. Also there are so many different boats, comparing like for like is very difficult unless you choose one of the French, German or Swedish makes to compare on both sides.



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