Great news if you’re a Brit planning to buy a property on the French Riviera! It’s now significantly less costly to do so, because the pound has reached an 18-month high versus the euro. To be specific, sterling has touched 1.2346 against the common currency today, its highest since December 10th 2012.
How many more euros will you get if you’re buying a French Riviera property?
If you’re buying a French Riviera property, what this means for you is that, if you transfer £1,250,000 to France, you’ll receive +€130,250 more today than if you’d done so when the pound was at its weakest, back on March 12th 2013, at just 1.1371. So clearly, this rise in the exchange rate will add greatly to your euro total!
Why has the pound climbed versus the euro?
Sterling has risen against the euro, because the UK’s economy is doing so well at the moment, while the Eurozone’s is doing relatively badly. For instance, the UK is thought to have expanded +1.0% between April and June, the fastest since 2007, and more than any other major country. So as the UK has bounced back, so has the pound!
Will the pound rise further against the euro, further cutting the cost of French Riviera property?
It’s impossible to predict with certainty what will happen next to the exchange rate, but the pound certainly looks like it will strengthen further! This is because the Bank of England is tipped to become the 1st major central bank since the financial crisis to hike interest rates, showing us just how well the UK is doing compared to the rest of the world.
Given this, 2014 looks like a great time to buy a French Riviera property, as the pound jumps against the euro!
About the author
Peter Lavelle is a currency dealer at foreign exchange broker Pure FX. For free currency advice when you buy a property on the French Riviera, call him on +44 (0) 1494 671800 or email firstname.lastname@example.org.