Do you intend to buy a Mallorca property in 2016? Well, whether it’s a 600-square metre country house in Sant Llorenc, or a designer villa with a swimming pool in Porto Cristo, you’ll be pleased to know that it’s more affordable to do so now. Why? Well, because this week the pound to euro exchange rate has hit 1.28, a full +8 cents higher than this time 2 years ago, back in January 2014.
What this means for you when you buy a property in Mallorca is that you’ll receive a much higher euro total when you transfer money to Spain. To be exact, were you to transfer £2,500,000 to buy a 4-bedroom villa with panoramic views in Son Macia, you’d now receive €3,200,000, +€200,000 more than if you’d made the same transfer in January 2014. So, the strong pound is clearly advantageous!
After all, with an extra €200,000 in your Spanish bank account, you could pay off the legal fees and real estate costs associated with buying your Mallorca property. What’s more, you could buy a more luxurious property than you’d originally had in mind, with an extra bedroom, for instance. Alternatively, you could buy a Mallorca property in a better location, by the coast or in the countryside.
Moreover, it may soon become an even better time to buy a Mallorca property, if sterling continues to strengthen versus the euro. The pound could climb, first because the UK looks likely to vote to stay in the EU in its referendum this June, which would lift the pound. Second, the euro could fall, because the European Central Bank looks very likely to further cut interest rates in March.
Given all this, it’s the ideal time to buy a property in Mallorca, thanks to the favourable exchange rate!
For furhter information please don't hesitate to contact us.
Peter Lavelle - Pure FX (Foreign Exchange Specialists)