Are you a Brit, thinking of buying a property in Berlin? If so, you’ll be pleased to know that buying your ideal German property will now leave less of a dent in your bank balance. This is because the pound to euro exchange rate recently hit a 7.5-year high, at 1.4256, its strongest since November 7th 2007!
What this means for you is that, when you transfer money from the UK to your German bank account, to buy a Berlin property, you'll get more euros. For example, let's say you transfer £250,000 to Germany. With that sum, you’ll now get +€56,000 more than if you’d bought a Berlin home back at the start of 2014, when the pound was far weaker.
In other words, that's an extra +€56,000 sitting in your German bank account, at no additional cost to you, just because the exchange rate has strengthened! With that sort of money, you could buy a more luxurious property in Berlin, decorate the place to your taste, or just pocket the sizeable saving for a rainy day!
Moreover, it could soon become even better value to buy a Berlin property, if sterling continues to climb versus the euro. The pound could exceed this 7-year high, first, if Greece exits the Eurozone, as looks entirely possible. Second, the pound may also continue to climb, because the UK economy is easily outpacing the Eurozone’s.
With this in mind, make the most of this advantageous exchange rate while it lasts, and buy your ideal Berlin property!
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This article is written by a guest author Peter Lavelle, from Pure FX.
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