How the exchange rate could affect the cost of your property purchase in 2023

Kyero team member

Why is it important to consider exchange rates? 

Exchange rates affect the cost of buying a property overseas because they determine the value of the currency you are using to purchase the property compared to the currency of the country where the property is located.

 

If the exchange rate changes, the cost of the property in your local currency may increase or decrease, affecting your budget and overall expenses. Additionally, exchange rate fluctuations can also impact the long-term value of the property and your potential return on investment.

 

Therefore it is important to consider exchange rates when making a decision to buy a property overseas. 
 

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What happened last year, and how could this impact you?

Throughout 2022, it was widely reported in the media that the pound had reached multi-decade lows against the Euro and US Dollar, with a difference of almost 20%, between the highest and lowest points.

As a typical property purchase in Europe can take around 1-3 months to go through, changes in the exchange can therefore significantly impact the cost of a property, between an accepted offer and the completion date.

The change in the cost to purchase €500,000.00, over the last 12 months showed a difference between the best and worst-case scenarios of over  £48,000! 


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