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Currency Watch: Strong sterling saves Brits 6pc on Greek property

Wednesday, April 11, 2012

In contrast to the first 3 months of the year, March saw the Pound finish higher against all major currencies, good news for buyers of overseas property as Greek real estate is effectively six per cent cheaper.

Some tentative signs of recovery in the UK have helped sterling, while new fears over government debt in Europe (Spain specifically) and structural problems in the US, have kept other currencies weaker. Combined with shifting house values in other countries, the currency fluctuations save buyers on the cost of overseas real estate. A property in Portugal is now nearly 4% cheaper for example, due to recent falling local prices combined with a better exchange rate.

In March, the most improved exchange rate was GBP-AUD, with the Australian Dollar over 4 per cent cheaper at the end of the month. The Aussie has remained very strong over recent history, so this will come as some respite for Brits looking to emigrate to Australia, with property becoming 5.38 per cent cheaper overall.

The South African Rand and New Zealand Dollar rates also posted impressive improvements.

For the mainstream US Dollar and Euro, we have seen modest improvements in rates, and a relatively stable month with the Euro rate only varying (from high to low) 1.53 per cent in March, compared with 2.75 per cent in February.

The recently-reported plummet in Spanish property prices will likely filter through to next month's Currency Watch and we would expect to see the overall cost for UK buyers, particularly in Europe, to become even more attractive just as the traditional season for Brits buying in the sun picks up pace.

Overseas property buyers should be aware of key events coming up in April which are likely to affect exchange rates and therefore their overseas property prices:

•             Ongoing: stability or not for the Eurozone - is Spain the next Greece?

•             Thursday 5th: Bank of England monthly policy announcement

•             Thursday 12th: Trade balance

•             Tuesday 17th: CPI inflation

•             Wednesday 18th: Bank of England minutes

•             Friday 20th: Retail sales

•             Wednesday 25th: GDP

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