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14 March 2014
If you plan to buy a property on Lake Garda, it may interest you to learn that the pound recently hit a 14-month high against the euro of 1.2258, cutting the cost of Lake Garda property. For instance, this time last year the pound was at just 1.1403 versus the euro, meaning it’s since climbed +7.5 % or 8 cents. To put this into context, a £1250 transfer to Italy to buy a Lake Garda property would be worth + €10,688 more today than 12 months ago. Clearly, this is a large saving.
Sterling has risen, because the UK economy is doing much better than the Eurozone’s. For instance, the UK economy is forecast to expand +3.4 % in 2014, making the UK “the fastest-growing major economy,” according to Bank of England chief Mark Carney. By comparison, the Eurozone will grow just +1.2 % in 2014, according to the European Central Bank, while major members of the currency bloc such as France and Italy struggle to avoid falling back into recession.
Moreover, the pound may rise further against the euro in 2014, further cutting the cost of Lake Garda property. For one, this is because the Bank of England has hinted it could hike UK interest rates as soon as Spring 2015, making the UK the 1st major economy to lift interest rates since the financial crash. By contrast, the euro could decline, as the European Central Bank looks set to hold interest rates a just 0.25 % for at least until 2016, as the Eurozone fights low inflation.
So, look for Lake Garda property to fall in price in 2014, as the pound continues to rise against the euro!
(Source: 13.03.2014 by Peter Lavelle at currency broker Pure FX . To get free expert foreign exchange advice about the best time to transfer money to Italy to buy a property, call Pure FX on +44 (0) 1494 671800 or email email@example.com.)