Do you intend to buy a Costa Blanca property in 2017? If so, whether you’ve got your eye on a 2-bedroom villa in Algorfa for €265,000, or 3-bedroom apartment in Punta Prima for €139,000, you’ll want the best exchange rate. After all, the higher the pound, the more affordable your dream Costa Blanca property becomes! With this in mind, here are 4 reasons why the exchange rate may rise in 2017.
- Sterling could strengthen, because the UK economy remains in excellent shape.
The pound may rise, making it cheaper for you to buy a Costa Blanca property, because the UK economy continues to march onward, in spite of Brexit. For instance, just this week we learnt that UK manufacturing expanded at its quickest pace in 2.5 years in December, while UK services growth hit a 15-month high. This could boost sterling, giving you more euros to buy a Costa Blanca property!
- The pound may rise, because Donald Trump looks set to favour the UK.
Sterling could also jump, cutting your costs when you buy a Costa Blanca home, because incoming US president Donald Trump looks set to favour the UK. For example, Mr. Trump has said that “the UK is a very, very special place for me”, while suggesting that America could sign a free trade deal with the UK. This would bolster the pound, bringing your Costa Blanca property closer within reach!
- The euro could weaken, because the ECB is extending its emergency stimulus.
Meanwhile, the euro may decline, meaning you’ll pay less to buy your preferred property on the Costa Blanca, because the European Central Bank has said that it will extend its emergency monetary stimulus to €60 billion a month. This will lift inflation in the Eurozone, but simultaneously devalue the euro, as it involves printing so much money. Hence, Costa Blanca property may fall in price for you!
- The common currency may struggle, because Europe faces several tricky elections in 2017.
Lastly, buying a Costa Blanca property may also become cheaper this year, because there are a number of difficult elections in Europe in 2017. To be specific, Marine La Pen could win France’s presidential vote in April, while Angela Merkel could fail in her bid for a 4th term as Germany’s chancellor. These votes could weigh on the euro, cutting the cost of buying a Costa Blanca property!
With all this in mind, 2017 is shaping up to be a fantastic time to buy a Costa Blanca property, as the pound to euro exchange rate may rise. Make the most of it!
Article provided by Peter Lavelle of Pure FX (Foreign Exchange Specialists)