Benidorm property may become cheaper in 2017, if exchange rate rises.
In this article I will tell you why 2017 looks set to be a great time to buy a property Benidorm, as the pound could strengthen versus the euro.
Do you intend to buy a property in Benidorm in 2017? If so, whether you intend to buy a €96,000 1-bedroom apartment with panoramic views, or a €158,000 apartment with a spacious living room, you’ll want the best exchange rate. After all, if the pound is flying high versus the euro, you’ll receive a higher euro total when you transfer money to your Spanish bank account, to buy a property in Benidorm!
With this in mind, what’s in store for the exchange rate next year, and how might it affect you, especially in light of the UK’s vote for Brexit? Well, take’s take a look into our crystal ball.
First of all, it looks like the pound to euro exchange rate could rise in 2017, cutting the cost of buying Benidorm property. Why? Well, because at the start of this month the UK’s High Court ruled that only Parliament has the authority to invoke Article 50 of the Lisbon Treaty to start Brexit, not Theresa May’s government.
This could strengthen sterling, because it means that MPs will now have a big say in what form Brexit takes, such as staying in the EU’s Single Market or Customs Union. Overall, this could lead the UK to choose a “softer” Brexit, boosting the UK’s economic outlook, and the pound!
For instance, just recently Mr. Trump said that the UK is “a very, very special place for me”, while former UKIP leader Nigel Farage became the 1st European politician to visit the President-Elect. Hence, this could lift sterling too!
Meanwhile, the euro looks set weaken in 2017, further cutting the cost of buying a property in Benidorm, as it’s thought that right-wing extremist Marine La Pen has a much higher chance of winning France’s Presidential election next year, following Donald Trump’s triumph in the US.
Ms. La Pen leads the National Front party, and has promised to take France out of the European Union, and restore the franc. Were she to come anywhere close to winning France’s Presidency, it would shake the established political and economic order in Europe. With this in mind, the euro could tumble next year!
Given all this, 2017 looks like an excellent time to buy a property in Benidorm, as the pound strengthens versus the euro. Make the most of it!
By Peter Lavelle at foreign exchange broker Pure FX http://www.purefx.co.uk