Pound rises versus euro - Cutting cost of Algarve property for Brits

Are you a Brit thinking of buying an Algarve property? If so, it may interest you to know that the cost of doing so has recently fallen, because the pound is strengthening against the euro. To be specific, sterling recently hit its highest since July 2012, or 28 months, at 1.2867.

For you, what this means is that when you transfer money to your Portuguese bank account to buy an Algarve property, you'll receive more euros. Exactly how many more you receive depends on how much currency you exchange, but for example, if you transfer £125,000 to Portugal, you'll now receive +€17,000 more than if you'd done so 18 months ago.

So in fact, if you're transferring a large sum to Portugal to buy an Algarve property, it's very likely you'll receive significantly more euros! With that extra money, you could think about buying a more luxurious Algarve property, installing an extension or swimming pool, or just pocket the extra euros.

Moreover, there's an excellent chance that the pound will continue to rise versus the euro. This is because the UK economy is on course to expand +3.0% this year, more than any other major economy. Meanwhile, the Eurozone may enter its 3rd recession since the financial crash. So, that may further lift the pound, and weaken the euro!

With this in mind, you can now get more euros when you transfer money to Portugal, significantly cutting the cost of Algarve property.

*By Peter Lavelle at foreign exchange broker Pure FX http://www.purefx.co.uk

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