Sterling’s rally in the final weeks of 2013 is great news for British people buying overseas property, thanks to their pounds buying them more foreign currency and making their purchase cheaper.

Article written by The Overseas Guides Company

It’s against the dollar that Sterling has risen most aggressively, with the exchange rate now hovering around a two-year high at £1/$1.63 – don’t forget, it’s been below $1.50 on a number of occasions this year. Against the euro, Sterling is back to levels last seen in January with £1 worth €1.20 – compare this to the start of August when the rate had fallen to a dismal £1/€1.14.

What does this mean in real terms for UK buyers in the Eurozone or Florida? More affordable property is the simple answer.

This cosy two-bedroom villa in Spain’s pretty northern Costa Blanca is on the market for €219,000, a fixed price for local people with euros in the bank. For a British buyer whose funds are still in pounds though, this property is more than £9,000 cheaper than it was at the start of August, purely down to the exchange rate moving back in favour of Sterling.

In Florida, the difference is equally impressive. This smart five-bedroom home in Davenport is on the market for $249,900, a fixed price for locals with dollars in the bank. But for a British buyer whose funds are still in pounds, this property is more than £13,000 cheaper than it was at various points earlier in the year, when the exchange rate dipped below £1/$1.50.

“Certainly for buyers in the USA, exchange rates are the most favourable they’ve been all year, while for the euro they’re edging that way,” said Charles Purdy at Smart Currency Exchange, a specialist in moving currency abroad at very favourable exchange rates. “Many of our clients opt to forward buy currency when rates get this good, so they’re effectively reserving an exchange rate for a transfer they’ll need to make at a later date – ideal when purchasing a property abroad and you need to work to a fixed budget and you are offered a competitive exchange rate.”

For more information on why using Smart Currency Exchange to transfer your pounds to a euro, dollar or other foreign currency account, instead of asking your bank to do it, download Smart Currency Exchange’s free report or visit the Currency Zone.

For more information on buying property successfully in the USA and Spain, download the Overseas Guides Company’s free USA Buying Guide and Spain Buying Guide – and start receiving free news updates by email.