So the politicians have all left Westminster and gone to the seaside, or wherever they hold party conferences these day. I know we’re supposed to be outraged about parliament being suspended at this critical time, but maybe getting away from it all, again, will be a help to them. We would encourage anyone to buy a holiday home that allows them to get a different perspective on the world.
For the rest of us, the improved exchange rate has been a ray of sunshine as we approach a busy time for buying abroad. We hit an 11-week high against the euro on Monday and this stayed with us since, more or less. The pound is almost 5% stronger against the euro than this time last month, making a Spanish, French, Italian or other European property considerably cheaper.
It might improve even further, or it could fall back once again. Looking at the bigger picture, nice though it is to get a 5% better property for your money than last month, the improvement to your health and happiness from a retirement abroad might be worth considerably more in the long term. That’s worth bearing in mind if the rate falls away again next week. We believe it’s vital to focus on what you want and can achieve with your budget, and then remove any risks to that budget.
That probably means taking out a forward contract, which locks in your rate for the year ahead. It also means getting a really good lawyer and estate agent too. It’s easy to see them as an expense, but really they’re your friends and allies.
At Smart we’re quite pleased that Brexit Day (probably) won’t fall on the 31st October, not for any political reasons, but simply because we will all be at The Luxury Property Show in London on that and the following day. It promises to be quite a special occasion, packed with helpful experts such as those lawyers and estate agents I just mentioned, along with various entertaining luxury experiences too.
If you think it would be good to view property abroad in the year ahead with your exchange rate locked in, do call your trader on 020 7898 0541.
