Fantastic Time To Invest in Spain or Portugal, as Pound Strengthens
Fantastic Time To Invest in Spain or Portugal, as Pound Strengthens
Are you planning to invest in Spain or Portugal this year? If so, whether you intend to make an investment in Spain’s hotel industry, or buy up tourist apartments in Portugal, you’ll want to transfer your money at a top exchange rate.
This is because, when the exchange rate is strong, you receive a higher euro total, to invest in Mediterranean property, whether you’ve got your eye on commercial venues in Madrid, Barcelona, Lisbon or Porto. With this in mind, how can you transfer your money to your Spanish or Portuguese bank account at the best rate, for your investment?
Exchange rate hits 9-week high, boosting your euro total in Spain or Portugal
Well, the good news is that it’s currently a fantastic time to transfer money to Spain or Portugal, to invest. This is because this week the pound to euro exchange rate has reached its highest in 9 weeks, or since July 14th, at 1.1388.
Given this, you’ll receive a far higher euro total when you exchange currencies, to invest in hotels or tourist apartments in the Mediterranean. By contrast, back in late August, sterling was worth just 1.0790 versus the common currency. Hence, a £250,000 transfer would get you +€14,950 extra than if you’d made the same transfer 3 weeks ago!
Pound rises, as Bank of England talks up odds of interest rates hike
Sterling has risen against the Eurozone’s common currency, lifting your euro total to invest in Spain or Portugal, because the Bank of England now looks far likelier to lift UK interest rates. For instance, just yesterday Bank of England policymaker Gertjan Vlieghe said that the UK’s central bank may lift interest rates above their current all-time low of 0.25% «as early as in the coming months.»
Were the Bank of England to lift interest rates, sterling would rise, thus making investing in Spain or Portugal far more attractive, whatever business opportunity you’d like to capitalise on.
[/vc_column_text][/vc_column][vc_column width=»1/2″][vc_empty_space height=»12px»][vc_column_text]Euro weakens, as European leaders play down Juncker’s federalist vision
What’s more, it’s also the ideal time to invest in commercial venues like car parks in Madrid and shopping centres in Alicante, because the euro has weakened. In particular, the common currency has lost out recently, because European leaders have poured cold water on EU Commission President Jean-Claude Juncker’s plans for a federalist Europe.
For instance, the Netherlands’ prime minister Mark Rutte recently called Mr. Juncker a «fantasist», for suggesting that 30 European countries could be using the euro and Schengen Area by 2019, and thereby dragging down the euro.
With all this in mind, it’s a fantastic time to take advantage of investment opportunities in the Mediterranean, as the exchange rate is favourable. Given the strong pound, you’ll receive a far higher euro total when you transfer money to Spain or Portugal, giving you a helping hand to buy commercial venues on the Iberian Peninsula!
By Peter Lavelle at foreign exchange broker Pure FX
Peter Lavelle
Pure FX
+44 (0) 1494 671800
