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We are delighted to introduce you to Peter Lavelle from E-Money Institution Pure FX, a bconnected collaborating partner who’s expertise on the current economy in Mallorca will advise you when making your decision to purchase your dream home!
Euro Weakens in 2019, Cutting Cost of Sublime Mallorca Properties
By Peter Lavelle at E-Money Institution Pure FX
Do you intend on buying a gorgeous Mallorca property with bconnected Mallorca this year or next, either as a holiday getaway or to start a new life with your family on this beautiful Mediterranean island?
If so, you’ll be delighted to hear that bconnected Mallorca offers an abundance of sublime properties, whether that’s a luxurious six-bedroom villa with a tropical garden swimming pool and stunning views, in exclusive Old Bendinat, or a modern five-bedroom villa with a contemporary design in the centre of fashionable Portals Nous.
Whether you’re purchasing prime Mallorca real estate for relaxing breaks in the sun, or to up sticks and start over on an island with an array of excellent schools, top-notch restaurants, and every conceivable amenity, you’re sure to find what you’re looking for.
Of course, while you’re dreaming of sitting in a sunbed, catching some rays, listening to the sound of the palm trees swaying in the breeze and the kids splashing happily in your private pool, there are some practical considerations to take care of first.
For instance, if you’re British, American or another nationality buying exquisite Mallorca property, you’ll first need to transfer money to a Spanish bank account, to complete the purchase of your luxury Mallorca home.
In this case, it may interest you to know what’s happened to the value of the euro on the interbank foreign exchange market so far in 2019, and what may influence the euro in 2020. You might use this information, to decide when to exchange currencies, to bring you a step closer to making your dream of owning a top Mallorca home come true.
Pound & US dollar rise vs euro, making Mallorca property more affordable
If you’re a Briton waiting for the day when you hold the front door keys to your Mallorca property, it may interest you to know that the pound sterling has risen versus the euro on the interbank market so far this year.
To be specific, sterling was at 1.1087 on January 1st 2019, and stands at 1.1673 in mid-November, a gain in value of close to six cents, or of 5.28%.
Similarly, if you’re an American exchanging US dollars for euros to buy a little piece of Mediterranean paradise in Mallorca, for your family vacations or to retire in the sun, it may please you to learn that the greenback has strengthened in 2019 versus the Eurozone’s “common currency.”
The US dollar to euro interbank exchange rate stands at 0.9044 in mid-November, compared to 0.8704 on January 1st this year, a rise of over three cents, or 3.9%.
Given this, when you transfer money to Spain from the UK or US, you could receive a higher euro total, compared to if you’d exchanged currencies at the start of this year.
In turn, this may increase your budget, to buy more luxurious Mallorca property than you’d hand in mind, with another bedroom, closer to the beach, or gorgeous views.
Alternatively, you might use the extra euros to pay the legal fees and administrative costs of your new Mallorca home. Simply put, the weaker euro is a welcome helping hand, to set your on your course to owning sublime Spanish real estate.
Euro weakens in 2019, as ECB interest rates stand at 0.0%
One factor why the euro has weakened versus its currency counterparts in 2019 is because the European Central Bank’s (ECB) interest rates stand at 0.0%. By comparison, the UK’s borrowing costs are at 0.75%, while America’s stand at 1.5-1.75%.
However, while this may weigh down the Eurozone’s “common currency”, it simultaneously lowers the cost of taking out a Spanish mortgage.
So this is another advantage to keep in mind, when you’re browsing BConnectedMallorca’s website, wondering which fabulous Mallorca property to make your own.
Similarly, looking to 2020, the ECB looks set to keep borrowing costs at 0.0%, which may influence the value of the euro on the interbank market.
In particular, new President Christine Lagarde may maintain Eurozone interest rates low, to make taking out loans cheaper for the bloc’s households and businesses.
If so, this could similarly work in your favour, when you buy your Mallorca property, whether that’s a magnificent three-bedroom home in Palma, or a beautiful rustic Finca in Sineu with pool.
Please note that the exchange rates within this article are interbank rates and are for indicative purposes only, and are not trading levels which E-Money Institution Pure FX offer. For live trading levels contact one of our currency brokers on +44 (0) 1494 671800.
This article does not constitute advice to any person on any matter and it is not intended as a recommendation to trade. Pure FX makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to any loss arising from actions taken as a result of acting on this information.