There’s potentially helpful news if you’re a Brit thinking of buying a property on the Costa del Sol in 2019, with Ferrari Estate. So far this year, the pound to euro interbank exchange rate has risen by +4.71%, or over +5 cents, from 1.1087 on January 1st up to 1.1605 at the time of writing.
As a result, when you transfer money from the UK to your Spanish bank account, to buy Costa del Sol real estate, you might now get a higher euro total than at the start of this year. In turn, this could conceivably make buying a Spanish property more affordable for you, whether you intend to buy a holiday home or retire.
Rising Exchange Rate Might Lift Your Euro Total
Let’s put this rise in the pound to euro interbank exchange rate into context for you. Imagine that you intend to transfer £388,000 from the UK to Spain, to buy a 2-bedroom apartment in a private estate by the seafront, in Estepona, Málaga. At the interbank exchange rate at the start of this year of 1.1087, £388,000 would have been worth 430,175.60€.
By comparison, at today’s interbank exchange rate of 1.1609, £388,000 would be worth 450,274.00€. That’s an increase of +20,098.40€ in the last 3 months. So this increase in the interbank exchange rate so far in 2019 could make buying a Costa del Sol property more accessible for you.
Stronger Pound Might Make Costa del Sol Property More Affordable for You
After all, it’s easy to think of things you could do with an extra +20,098.40€ in your Spanish bank account, compared to if you’d transferred money at this start of this year. For example, you might use these extra euros to pay for your administrative and legal costs associated with buying your real estate on the Costa del Sol.
Alternatively, these extra euros might be used to decorate your Spanish property in Estepona, Benahavis or La Cala de Mijas according to your taste, for example by buying new furniture or painting the walls your favourite colours.
Alternatively, the extra euros could be used to rent a car, and explore the Costa del Sol with your family and friends. In any case, the rise in the interbank exchange rate helps make your Spanish dream easier to achieve for you.
Pound Rises, as UK Likelier to Retain Ties to EU After Brexit
A big factor why the pound to euro interbank exchange rate has risen in the last 3 months is that the UK and the European Union (EU) now look likelier to reach a Brexit deal. For instance, last week the House of Commons voted to rule out a “No Deal” Brexit, in which the UK would have crashed out of the EU without an agreement.
In addition, MPs compelled Prime Minister Theresa May to return to Brussels, and ask the EU for more time to negotiate Brexit. These events have reassured the financial markets that the UK will retain close political and economic ties to the EU after Brexit, in turn supporting the value of the pound versus the euro.
With all this in mind, it’s a top time to buy a property on the Costa del Sol with Ferrari Estate. This is helped by the fact that the pound to euro interbank exchange rate has risen notably since the start of this year.