2018 Looks Like A Top Time to Buy Paris Property
Excellent news if you intend to invest in a property in Paris in 2018! Whether you plan to buy a private mansion overlooking a beautiful garden in Paris’s 16th ‘arrondissement’, or you’ve got your heart set on owning the keys to a luxurious pied-a-terre on the Champs Elysées, you’ll be pleased to hear that the exchange rate could rise next year.
Hence, when you transfer money to your French bank account to buy your gorgeous piece of Parisian real estate, you’ll receive a higher total in euros! Why does the exchange rate look set to rise in 2018? Well, read on to find out.
- The euro may weaken in 2018, as the European Central Bank looks set to keep interest rates low.
The first reason why the exchange rate could rise next year, lifting your euro total to invest in outstanding Paris property, is that the European Central Bank (ECB) looks set to keep interest rates low. The ECB may hold borrowing costs at 0.0% next year, because Eurozone inflation rose just +1.5% in November, below the central bank’s target of close to 2.0%.
As a result, ECB president Mario Draghi could well keep interest rates flat next year, to stimulate Eurozone inflation. In turn, this would weaken the euro, making top Paris property a more affordable investment for you!
- The common currency could lose out next year, as the Eurozone economy is showing signs of moderating.
What’s more, the second reason why the euro could decline in 2018, which would make investing in gorgeous Paris property more affordable for you, is because the Eurozone’s economy is showing signs of moderating.
For instance, retail sales in the common currency bloc unexpectedly eased -1.1% in October, according to Eurostat this week, below October’s +0.7% rise. In addition, confidence among Eurozone businesses moderated this month, according to Sentix. In turn, this could weigh down the euro, reducing the cost of investing in Paris property this year and next!
- The euro may slide in 2018, as Germany is struggling to form a stable government.
Also, the Eurozone’s common currency could struggle next year, thus lifting your currency total when you transfer money to France to buy a Paris property, as Germany is struggling to form a government.
In particular, Chancellor Angela Merkel’s negotiations with the Free Democrats and Greens collapsed last fortnight, following September’s fragmented elections. This leaves the Eurozone’s largest economy without a stable government for the first time since WWII, which could weigh both on Germany’s outlook, plus the euro! As a result, Paris property would fall in price.
With all this in mind, 2018 looks like the ideal time to buy an outstanding Paris property, as the euro may fall. In turn, this would cut your costs to invest in Paris!