In this article I’ll explain how it’s now cheaper to buy your dream Marbella property, because the pound to euro exchange rate has risen. I’ll also tell you how you can make this most of this favourable exchange rate.
The sun! The sand! The clear blue skies! These are just some of the excellent reasons to get away from it all, and buy a dream home in Marbella. Except, of course, that buying your perfect property in Marbella is easier said than done, because of the considerable costs involved. There’s the price of the property itself, the real estate fees, home insurance, and so on. You can end up shelling out a lot!
With this in mind, you’ll be pleased to hear that you no longer have to sell a kidney to get your hands on the keys to your dream Marbella home, because the pound to euro exchange rate has shot up. Since the start of 2014 for instance, sterling has climbed a full +15 cents against the Eurozone’s common currency, from 1.20 to 1.35. And this will cut the cost of buying a Marbella property!
For instance, let’s say you were to transfer £250,000 to your Spanish bank account with Santander or Bankia. With that sum, you’d receive +€37,500 more today than if you’d bought a Marbella property back at the start of 2014, at €337,500. That’s not just pennies, which will thus enable you to purchase the Marbella property been dreaming of, buy some furniture, whatever you like!
The pound to euro exchange rate has strengthened since January 2014, because the UK economy has been motoring ahead, while the Eurozone is still stuck in 1st gear. For example, the Bank of England is being tipped to hike interest rates as soon as February next year, indicating that the UK economy is now strong enough to withstand higher borrowing costs. And that’s lifted sterling!
Of course, you may not wish to purchase your Marbella property just yet. If so, how can you take advantage of this favourable exchange rate? Well, you might consider what’s called a “forward contract”. This lets you lock in today’s exchange rate for up to 2 years, so that whatever happens to the exchange rate in the meantime, you get today’s rate. Hence, you’re protected from risk!
Moreover, to further ensure you get the highest euro total for your Marbella purchase, it’s worth comparing the exchange rate your bank offers you with that from a specialist currency broker. This is because a specialist broker can get you an exchange rate up to 4% better than your bank, which on a transfer of hundreds of thousands of pounds will make a significant difference to your total!
In brief then, whether you intend to buy your ideal Marbella home now, or in the near future, it’s a fantastic time to do so, thanks to the strong pound. Make the most of it while it lasts!
By Peter Lavelle
Pure FX
http://www.purefx.co.uk
+44 (0) 1494 671800
