When you agree
to buy a property in Spain, you will know the price of the
property in Euros or the local currency. However the cost
to you depends upon the exchange rate that you are able to
achieve to buy your local currency.
Therefore, you need to make
sure that you are buying the currency at a competitive rate.
As a general rule using a specialist currency broker, such
as ours, will usually enable you to buy your currency at
a better rate than your bank would offer you. This is very
easy to check as you can easily compare prices or 'shop around'.
The payment procedure when
buying a new-build property is structured so that you have
several staged currency payments to make. Therefore the exchange
rate available at the time of sending your deposit will almost
certainly be different by the time you need to make your
next staged payment, let alone the final payment upon completion.
How can you ensure that the
cost of the property does not escalate if the exchange rates
move against you?
- Buy all your currency now and hold
them in a currency account. You can than make staged
payments as requested by the developer.
- Buy your deposit now and fix an exchange
rate for all of the future payments. This means that,
in effect, you can buy all your currency now but pay
for them later (you will need to pay for only 10% of
the reserved currency straight away and the 90% balance
each time you need to make a currency transfer).
If you decide to buy your
local currency each time a payment is due, then you might
benefit if the Pound stays strong but you are taking a big
risk. What price would you put on peace of mind? |
