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I have the majority of my savings in Swedish fonds, with the rest in Global or European (non-Euro) fonds. Current value = €50k. I also own property in Stockholm. Current value = €200k. I am 35 and married.

We wish to move from Stockholm to Ireland in 3 years time and buy a home there.

My fears: Irish house prices are increasing rapidly and the Euro is gaining in strength against the krona. Irelands economy is expected to grow very strongly next year.

How might I invest my money over the next few years with respect to our plans on moving to Ireland?

  • We wish to move That is a very big if. Think about it only when you are sure you intend to move to Ireland. Or is your moving to Ireland, contingent on the fact of you being able to buy a house in Ireland ? – DumbCoder Dec 29 '14 at 9:08
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There contracts called an FX Forwards where you can get a feel for what the market thinks an exchange rate will be in the future. Now exchange rates are notoriously uncertain, but it is worth noting that at current prices market believes your Krona will be worth only 0.0003 Euro less three years from now than it is worth now.

So, if you are considering taking money out of your investments and converting it to Euro and missing out on three years of dividends and hopefully capital gains its certainly possible this may work out for you but this is unlikely. If you are at all uncertain that you will actually move this is an even worse idea as paying to convert money twice would be an additional expense on top of the missed returns.

There are FX financial products (futures and forwards) where you can get exposure to FX without having to put the full amount down. This could help hedge your house value but this can be extremely expensive over time for individual investors and would almost certainly not work in your favor.

Something that could help reduce your risk a bit would be to invest more heavily in European even Irish (and British?) stocks which will move along with the currency and economy. You can lose some diversification doing this, but it can help a little.

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I was in a similar situation, and used FX trading to hedge against currency fluctuations. I bought the "new" currency when the PPP implied valuation of my "old" currency was high, and was able to protect quite a bit of purchasing power that I would have lost without the hedge. Unfortunately you get taxed for the "gain" you made, but still helpful.

In terms of housing market, you could look into a Ireland REIT index, but it may not correlate well with the actual house prices you are looking for.

  • you also going to need to have some cash for the deposit unless you are going to use your existing funds for that. – Pepone Dec 28 '14 at 19:50

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