Buying overseas? Speak to the currency experts first
Spanish property continues to be popular for Brits looking to buy abroad, with nearly half of all property enquiries for Spain sitting in the £50,000 to £150,000 bracket according to figures from Kyero.com. The Costa Blanca remains the favoured region, accounting for more than a third of Spanish property enquiries on the portal, and with prices in northern Spain having fallen dramatically during the credit crisis there are many bargains to be had.
The sale of homes in Alicante alone rose by 24.3% in the first quarter of 2014, according to figures from the Spanish Development Ministry, with more than 6,600 sales completed in this period.
The strengthening pound has done a lot to draw overseas property buyers back into the market, as the pound has reached €1.268 recently – a 24-month high. But if you plan on getting a property overseas, there are many things to consider. For example, you need to factor in not only the property costs but also notary fees and other legal costs, not to mention property taxes.
However, if you choose to make the international money transfer through your bank, you could be missing out on significant savings that could give you enough to help towards these fees, or to renovate and decorate the property you buy.
The CityAM International Payments service, powered by Moneycorp, offers competitive exchange rates that could leave more of your money in your pocket just by giving you a better deal.
Buying a property overseas is not always easy, and it will take time – sometimes months – to go through all of the paperwork and legal hoops to ensure your dream property does not turn into a nightmare. In that period, exchange rates can move significantly. In July this year, the pound was worth €1.26 – so £100,000 buys you €126,000. Back in July 2013, that same £100,000 would only buy you €114,000, and if rates move fast, it could simply blow your budget.
By using the CityAM International Payments service, you get access to currency experts at Moneycorp who can not only help you plan the timing of your transfer, they can fix your exchange rate by offering you a forward contract. This means that when the time comes, you know you can afford the property you want.
The fees are often much lower than the bank too; online transactions are free, while the bank will typically charge between £20 and £40 each time you make a transfer. Given you will probably have regular transfers to make once you have bought, for things like management fees or mortgage payments, these will soon add up over a year.
Buying a property abroad is a big deal, but you should not have to pay such a big price for it. So speak to the experts to get the best guidance, and we will work with you every step of the way to realise your dream.