Do you intend to buy a gorgeous Palma de Mallorca property in 2018? If so, whether you've got your heart set on a spectacular 3-bedroom apartment in Palma's Casco Antiguo (Old Town) for 850,000€, or you see yourself holding the front door keys to an amazing 2-bedroom penthouse with sea views in Calvia Mallorca for 825,000€, you'll want an excellent exchange rate.
After all, when the pound flexes its muscles against the euro, you get a higher euro total, when you transfer money to buy your dream Palma de Mallorca property! So what's in store for the exchange rate this year?
Well, the fantastic news if you dream of sunning yourself at your very own Palma de Mallorca property, is that the exchange rate has jumped recently. To be specific, the pound to euro interbank exchange rate stands at 1.13 today, a full +5 cents higher than 6 months ago, back in late August 2017.
This means that, when you transfer money from the UK to your Spanish bank account, to buy the fab Palma de Mallorca property your heart desires, you'll get a far higher euro total! In turn, this will make buying your superb Palma de Mallorca home more affordable, so you can enjoy fun in the sun!
For example, let's say that you intend to transfer £340,000 to your Spanish bank account, to buy an outstanding 3-bedroom penthouse in the exclusive Calle Industria of Palma. At today's interbank exchange rate of 1.13, you'd receive 380,800€ for your transfer, compared to 363,800€ 6 months ago.
So that's an extra 17,000€ in your Spanish bank account, to buy your amazing Palma de Mallorca property, thanks to the stronger exchange rate! With this significantly higher euro total, your dream Palma de Mallorca property is much closer within reach for you.
Sterling has shot up versus the Eurozone's common currency, first because the Bank of England looks set to lift UK interest rates later this year. For instance, just last fortnight central bank policymaker Dave Ramsden told The Sunday Times that "I see the case for rates rising somewhat sooner rather than somewhat later."
Meanwhile, the European Central Bank looks set to keep interest rates at all-time lows of 0.0% until at least late 2019. So this boosted the pound, to give you a helping hand to buy the brilliant Palma de Mallorca property you've been longing for!
With all this in mind, it's a fantastic time to buy your Palma de Mallorca property, as the exchange rate has flown higher in recent months!
By Peter Lavelle at foreign exchange broker Pure FX