Do you intend to buy your ideal Cannes property this year? If so, whether you’ve got your heart set on a gorgeous 1-bedroom apartment close to the shops in Basse Californie for €403,000, or a stunning 2-bedroom apartment with a beautiful terrace in Palm Beach for €773,800, you’ll want an outstanding exchange rate.
After all, when the British pound sterling shoots up versus the Eurozone’s common currency, you get a higher euro total in your French bank account, to buy your fabulous Cannes property! Given this, what’s in store for the foreign exchange rate this year?
Top time to buy property in Cannes, as pound strengthens
The good news is, it’s currently an excellent time to buy the outstanding Cannes property your heart desires. This is because the pound to euro interbank exchange rate stands at 1.14 today, a full +6 cents higher than 8 months ago, back in August 2017.
As a result, if you transfer £665,000 to France to buy a 2-bedroom apartment with a swimming pool in Palm Bay, you’ll currently receive €758,100. That compares to a euro total of €718,000 if you’d bought your euros back in August, a full €40,100 higher! So the currency rate is on your side to buy your dream Cannes property.
Sterling climbs, as UK unemployment falls
Why has sterling jumped against the common currency, cutting your costs to buy your beautiful Cannes property? Well chiefly, because the UK economy continues to shine bright. For instance, UK unemployment fell -0.1% to 4.2% in the 3 months to February, the lowest since the mid-1970s, said the UK’s Office for National Statistics last week. This tells us that UK is creating lots of jobs.
In addition, UK wage growth rose to 2.8% in February, above 2.7% inflation, which means that Britons’ living standards are rising again. As a result, the value of sterling has risen substantially!
Euro could weaken, as Eurozone inflation drops
What’s more, looking ahead, the pound could continue to climb against the euro, thus making your fab Cannes property even more affordable for you. The euro may weaken, because Eurozone inflation fell by -0.1% in March, to just 1.3%.
This is well below the European Central Bank’s target of close-to-but-below 2.0%, and so eases pressure on the ECB to end its extraordinary monetary stimulus. As a result, the Eurozone’s central bank may continue to print euros, to lift inflation in the currency bloc. This in turn devalues the euro, so making Cannes property cheaper!
Given all this, it’s a fantastic time to buy your dream Cannes property, as the exchange rate is on your side. Make the most of it!
By Peter Lavelle at foreign exchange broker Pure FX https://www.purefx.co.uk
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