Buying Alicante Property Could Become Cheaper, as Pound Set to Rise
Do you intend to buy a property in Alicante this year? If so, whether you’d like the keys to a 3-bedroom villa with a swimming pool in Albatera for €83,000, or a 2-bedroom penthouse with a sea view in Bonalba Golf for €104,000, you’ll want a top exchange rate.
After all, when the pound is soaring like an eagle versus the euro, you receive a higher currency total in your Spanish bank account, to buy the Alicante property you’ve been dreaming of! With this in mind, what’s in store for sterling versus the common currency in 2017 and beyond, for you? Well, let’s take a gander.
Pound could rise, as UK factory orders hit 29-year high
First of all, the pound to euro interbank exchange rate could soon exceed its current 1.13, because the UK’s manufacturing sector is flying high. To be specific, UK factory orders reached their highest since August 1988 between July and September, according to the Confederation of British Industry today, at +17%.
Among UK manufacturers, orders for food and drink, plus chemicals, rose sharply in Q3. In turn, this could sharply lift sterling versus the common currency, so cutting your costs when you transfer money to Spain, to buy the Alicante home you’ve been waiting for!
Euro may tumble, as Germany struggles to form a government
What’s more, the UK’s pound sterling may also flex its muscles against the euro, because Germany is having a tough time forming a government. In particular, Chancellor Angela Merkel’s attempts to form a coalition with the Greens and the Free Democratic Party (FDP) have collapsed this week, as the FDP has pulled out of talks.
In turn, this leaves Germany, the Eurozone’s economic motor, without a stable government for the foreseeable future. As a result, the Eurozone’s common currency could flounder, thus making buying your dream Alicante property more affordable for you!
Get more euros for your Alicante property, as sterling jumps
With all this in mind, just think what you could do with the extra euros in your Spanish bank account, as a result of the stronger exchange rate! After all, at present the pound to euro interbank exchange rate stands at 1.13, a full +5 cents higher than 3 months ago, back in late August.
With this in mind, were you to transfer £250,000 to Spain at this interbank exchange rate, to buy an Alicante property, you’d receive an outstanding €12,500 extra. That’s enough to pay off the legal fees or administrative costs for your Alicante property, getting your Spain life off to a fab start!
With all this in mind, it’s looking like a fantastic time to buy an Alicante property, as the rising exchange rate could lift your euro total!
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