Sterling is enjoying two-year highs, central banks have started cutting rates and the UK Government has just released the October budget. Are we on the cusp of an opportune time to sell up and escape to warmer climes? Here is some food for thought…
Stronger sterling
A €400,000 house by the Med is currently around £15,000 cheaper to a UK buyer than two years ago, thanks solely to today’s more favourable exchange rate. The savings are even greater if you buy across the pond in the USA, where a $400,000 Disney home will cost you £55,000-£60,000 less. The benefits are also felt by expats receiving Sterling income, including UK-based pensions, as they get that little bit extra transferred into their euro or dollar bank account each month.
Click here to see how much your euros or dollars will cost you today.
GBP/EUR: the past year
Would you swap life in the UK for a new start on the Cote d’Azur?
Cash out in Blighty?
Own a UK home outright or brimming with equity that you plan to sell when you move abroad? You may have chosen to sit tight during the last couple of years of negative – or at best stagnant – house price growth. But as we head into autumn 2024, signs point to the dawn of a market turnaround and better selling conditions for fidgety vendors. It might be time to get your estate agent round to do a valuation…
The Bank of England’s quarter-point rate cut in August – the first in four years, has been a key catalyst. After holding in September, analysts are predicting another cut in November. The changes are filtering through. For the third consecutive month, net mortgage approvals rose in August and are not the highest level since August 2022, according to the latest Bank of England data. At the same time, UK house prices increased by 0.7% in September, after taking into account seasonal effects, according to Nationwide’s latest index. “This resulted in the annual rate of growth rising from 2.4% in August to 3.2% in September, the fastest pace since November 2022 (4.4%),” said their chief economist. “Average prices are now around two per cent below the all-time highs recorded in summer 2022.”
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Slash your outgoings and tax bill
Concerned that your current or future tax bill might rise in the coming months, following the Government’s October budget? Sick and tired of the UK’s high cost of living? If you’re sensible, moving abroad could mean you enjoy a fabulous lifestyle and have more money in your pocket at the end of each month. We already know that the UK is a more expensive place to live compared to most Mediterranean countries (See The Cost of Living Overseas Index 2024 – Property Guides).
Pick your country carefully and take specialist financial advice and you could feasibly cut your tax bill. Several countries, including Cyprus, Italy and Greece, offer schemes enabling newly resident foreigners to pay very low flat-tax rates on foreign pensions and income. Combined with the low cost of living and affordable property on offer in these countries, it’s hard not to be tempted.
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