British property buyers have to hurry up if they want to land some bargain buys overseas as the euro-sterling exchange rate is creeping back up in favour of the euro, expert Elaine Ferguson says. Anyone on the verge of purchasing in a Eurozone country should be extra vigilant when arranging their euro transfers to pay for […]
British property buyers have to hurry up if they want to land some bargain buys overseas as the euro-sterling exchange rate is creeping back up in favour of the euro, expert Elaine Ferguson says.
Anyone on the verge of purchasing in a Eurozone country should be extra vigilant when arranging their euro transfers to pay for their property, OverseasGuidesCompany.com said in August.
Ferguson, head of the resource centre at OverseasGuidesCompany.com, explains:
“The euro has gained around four percent against sterling in less than a week and of course this change equates directly to a rise in the cost of euro-priced property for Brits with funds in sterling,” said Elaine Ferguson, Head of the Resource Centre at OverseasGuidesCompany.com. “Anyone who began their property hunt earlier in the year when an exchange rate of £1/€1.42, for example, was achievable, might be shocked by a Spanish or French property’s sterling cost today, with the rate at £1/€1.36. For a €200,000 property, the sterling difference is around £6,5000.
“As always, no single factor can be blamed for the swing in the exchange rate, but expectations that a Bank of England interest rate hike will come later than first anticipated, 
along with the resignation of the Greek prime minister and Greece’s securing of a third bail-out are deemed to have helped the euro steal value back against sterling in August.
“Uncertainty over the exchange rate in coming months remains, although some analysts expect the euro to remain bullish. Anyone buying an overseas property should be prepared for changes in the rate at this volatile time and take this into account when budgeting. For many, forward buying currency could be the most reassuring way to cover the costs of their property purchase in the Eurozone.”
We have said from early 2015 that UK buyers if contemplating purchasing in Spain they need to take the plunge now as prices of good quality property have started to show signs of increase. With the Euro being 1.3798 = £1 sterling today and the likelihood of the Bank of England keeping interest rates on hold Thursday this could have a direct effect on prices. The media have been one of the worst offenders telling people that prices are still falling. If you are looking to buy your dream property contact an agent with a proven track record. We look forward to your enquiry.