Do you intend to buy a Mallorca property in 2018? If that’s the case, whether you've got your heart set on a spectacular finca with an area of 15,000 m² for 650,000€, or a beautiful 2-bedroom apartment with a swimming pool close to the sea for 239,000€, you'll want an outstanding exchange rate.
After all, when the pound stands tall against the euro, you get more euros in your Spanish bank account, to buy your perfect Mallorca property! With this in mind, how is the exchange rate doing now, and how can you boost your euro total to buy your ideal Mallorca home? Well, let's see.
Top time to buy Mallorca property, thanks to strong pound
To start with, if you dream of owning the front door keys to your very own Mallorca property, you'll be pleased to hear that sterling is flying high against the euro at present. To be specific, the pound is flexing its muscles at 1.12 against the euro today, a full +4.5 cents higher than 6 months ago, back in late August 2017.
Given this, were you to transfer £250,000 from the UK to your Spanish bank account at this exchange rate, you'd currently receive 280,000€, or +11,250€ more than 6 months ago. That's a big boost to your euro total, to buy your gorgeous Mallorca property!
Pound strengthens, as Bank of England to lift UK interest rates sooner
Sterling is flying high against the euro, thereby lifting your euro total to buy your fantastic property in Mallorca, because the Bank of England now looks likelier to lift UK interest rates. For instance, just last week central bank policymaker Dave Ramsden told The Sunday Times that "I see the case for rates rising somewhat sooner rather than somewhat later."
This raises the odds that the Old Lady of Threadneedle Street, as the Bank of England is sometimes known, will hike above 0.5% in the near future. In turn, this has helped sterling, giving you a boost to buy your Mallorca home!
Euro weakens, as European Central Bank to keep borrowing costs on hold
Furthermore, the pound has also puffed out its chest against the euro, because the European Central Bank (ECB) is on course to keep interest rates at all-time lows of 0.0% this year. It's thought that the ECB will keep interest rates flat in 2018, because Eurozone inflation sank -0.1% in February, to just 1.2%.
This is well below the central bank's target of close-to-but-below 2.0%, and tells us that the Eurozone economy is still too flabby to generate higher price pressures. As a result, low interest rates are keeping a lid on the euro, thus helping you to buy your fab Mallorca property!
With all this in mind, it's the ideal time to buy the Mallorca property you've been dreaming of. This is because sterling has strengthened significantly against the euro in the last 6 months, cutting your costs to buy your perfect Mallorca home!
By Peter Lavelle at foreign exchange broker Pure FX https://www.purefx.co.uk
+44 (0) 1494 671800
In collaboration with Pure FX, Pascual Associats will be your partner to find the best property