The exchange rate has in the first six months of the year again become the silent enemy of British overseas property-buyers, as well as residents receiving Sterling based income in the EurozoneRichard Way, Editor of The Overseas Guides Company says:
“This is thanks to £1 being worth just €1.156 yesterday, 16th July, compared with €1.231 on 1st January. It means a typical €150,000 property in Spain or France has increased in price by around £7,800 to a UK buyer - assuming the property's price hasn't changed - purely on account of the weaker pound.
It also means a monthly income of £1,000 is worth €53 euros less in Europe, or €636 a year - far more than the winter fuel allowance is worth!
Buyers in the US have been hit just as badly too. Yesterday £1 was worth $1.508, while at the start of the year, it was $1.626, making a typical $150,000 single family home in Florida around £7,200 more expensive to a British person.
On the flip side, the Australian dollar has weakened, from £1 to AUS$1.56 to today's AUS$1.66 - great news for anyone emigrating there or receiving a UK income!
Uncertainty over when Sterling could strengthen is especially intense at the moment, fuelled by recent comments from the new Bank of England Governor.
This makes using a currency exchange specialist to transfer money abroad - rather than just using a bank by default - even more advisable. Many people might find the strategy of forward buying half of the total amount they need to transfer and leaving the remainder to transfer at a spot rate on the day, a useful strategy to protecting themselves from rate movement.”