15.06.2017
In this article I will tell you why the
pound may rise against the euro in 2017, cutting your costs to buy a Costa
Blanca property.
Do you intend to buy a property on the
Costa Blanca? If so, whether you've got your eye on a 5-bedroom chalet with a
swimming pool in Suan Juan Playa for 1,590,000€, or a 550 m2 chalet with a
terrace and a garage in San Juan de Alicante for 1,800,000€, you'll want the
best exchange rate.
After all, if the exchange rate is flying
high, you'll receive more euros when you transfer money to your Spanish bank
account, to buy your ideal Costa Blanca property! With this in mind, what's in
store for the exchange rate in the 2nd half of 2017, and how might it benefit
you? Well, let's see.
1. Sterling may strengthen, as the
Tories pursue cross-party support.
The good news is that sterling could well
strengthen versus the common currency later this year, making buying a Costa
Blanca property more affordable for you. The pound may strengthen, first
because it's thought that, following the UK election, the Conservative
government will be much more moderate.
The Tories may be moderate, because they
lost seats at last week's vote, meaning that the Conservatives now depend on
other parties for support. In turn, this may oblige the Tories to pursue
policies that all of Parliament agrees on, lifting the UK economy, and sterling
too!
2. The euro could weaken, as the European
Central Bank maintains its stimulus.
What's more, the euro could lose out in the
coming months, also making buying your dream Costa Blanca property less costly
for you. Why? Well, because the European Central Bank (ECB) looks set to keep
interest rates at 0.0%, while maintaining its huge monetary stimulus, for the
foreseeable future.
For instance, just last week ECB president
Mario Draghi said that "a very substantial degree of monetary
accommodation is still needed.” In turn, this could weigh down the common
currency, benefiting you when you transfer money to Spain to buy a property on
the Costa Blanca!
3. The euro could lose out, as Greece's
debt crisis re-ignites.
Moreover, the euro may also struggle,
making buying a Costa Blanca property less costly for you, because Greece's
debt crisis has re-emerged. For instance, just this week, Greek Economics
Minister Dimitri Papadimitriou said that "Greece is being made a
sacrificial lamb", and that German finance minister Wolfgang Schaeuble is "dishonest".
This is dragging down the euro, because if
Greece struggles to reach a deal to reduce its massive debt load, it may be
forced out of the euro. In turn, as the common currency drops, purchasing your
ideal Costa Blanca property becomes cheaper for you!
With all this in mind, sterling looks set
to rise against the euro in 2017, making this the ideal time for you to buy a
Costa Blanca property!
By Peter Lavelle at foreign exchange
broker Pure FX http://www.purefx.co.uk
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