Do you intend to buy a property on the Costa Brava in 2017? If so, whether you intend to buy a 4-bedroom villa with a swimming pool in S’Agaro for €850,000, or a luxurious new home with views of the sea in Playa de Aro for €1,900,000, you’ll want the best exchange rate.
After all, if the pound strengthens versus the euro this year, you’ll receive more euros in your Spanish bank account, when you transfer money to buy a Costa Brava property!
With this in mind, what’s in store for sterling against the common currency, and how might this benefit you, especially given Brexit? Well, let’s take a look.
- Sterling could strengthen, because the UK economy looks immune to Brexit.
The good news if you plan to buy a Costa Brava property this year is that the pound may strengthen against the euro, even though the UK is leaving the EU. This is because the UK’s economy appears resistant to Brexit.
For example, last week we learnt that UK unemployment held at 4.8% in November, the lowest since 2005. This tells us that the UK is creating lots of jobs, in spite of Brexit, boosting both the UK’s economic outlook and sterling.
So, if the UK’s economic strength continues in 2017, then the pound may rise further against the euro, cutting your costs to buy Costa Brava property!
- The pound may climb, because Theresa May has moderated her tone over Brexit.
What’s more, the exchange rate could also pick up in 2017, making buying a Costa Brava property more affordable, because UK prime minister Theresa May has softened her language over Brexit.
To be specific, in a major speech last week Mrs. May repeatedly referred to the UK’s “European friends and allies.” This suggests that the UK will retain close ties to Europe even after the UK leaves the EU, which would boost the UK’s economic prospects.
In this case, the UK could continue to prosper even after Brexit, bolstering sterling, and making it less costly to buy a property on the Costa Brava!
- The euro could weaken, because the Eurozone faces several tricky elections.
In addition, the pound to euro exchange rate could also strengthen this year, giving you more euros to buy a Costa Brava property, because the Eurozone faces several troublesome votes in 2017.
In particular, National Front leader Marine La Pen stands a respectable chance of winning France’s presidential election in April. If Ms. La Pen wins, she’s promised to take France out of the euro, and call a referendum about leaving the EU.
Given this uncertainty, sterling could climb against the euro as a more stable alternative, benefiting you when you transfer money to buy property on the Costa Brava!
With all this in mind, 2017 is shaping up to be a fantastic time to buy a Costa Brava property, as you could receive more euros in your Spanish bank account, if the exchange rate rises!
“By Peter Lavelle at foreign exchange broker Pure FX http://www.purefx.co.uk”