The news last Friday should not put you off from buying your dream home abroad, and it should not prevent you from making a currency transfer either. If you’re worried about the outcome of a Brexit, and would like to know the facts, this short guide should help put your worries at ease.
Expats lived in Europe before the EU
And they will live in Europe after we leave, the UK and EU have a complex relationship intertwined with trade and financial agreements. Even when the UK finally withdraw from the EU, which could take years, the millions of expats from France and Spain living in the UK are not going to be sent home.
Similarly, British people living in France or Spain are not going to be made immigrants overnight, it would not benefit the UK and it would not benefit the EU.
British expats living in America, Australia and Canada are not exposed to free movement, and often have stringent visas to complete, it’s never stopped them from moving, and it shouldn’t stop you.
The UK will likely have to accept free movement of people
The UK exports 40-50% of its goods and services to the EU, it is in the interest of the UK to continue arrangements with free trade and thus, accepting the free movement of people. On the other hand, the EU relies heavily on UK contributions, who are the 3rd largest net contributor to the Bloc. It is therefore in the interest of the EU to maintain some degree of membership with the UK.
It needs to be said that even if the UK were to withdraw entirely from the EU, Article 50 prevents any changes for a minimum period of 2 years.
Exchange rates are still attractive
Although the news of a Brexit sent Sterling tumbling, current rates of 1.21 are still very attractive when put into perspective. The 10-year average for GBPEUR sits at 1.25, when compared with the lowest rates seen in December of 2008, rates were as low as 1.02.
With an extended period of uncertainty ahead, rates have the potential to fall further, current levels are arguably still worth utilising.
On the flip side, those looking to return to the UK will notice the Euro is at a 2 ½ year high against Sterling, making you £12,000 better off on a €200,000 sell off.
So, if you are thinking about moving abroad, don’t let the Brexit worries put you off. If your heart is set on moving, the above facts should serve to remind you that now more than ever is a great time to follow your dreams.