News: Protect your Costa Blanca property purchase from exchange rate movements
Written by Inmo Investments - 28 May 2018
The risk of negative exchange rate movements
on your Costa Blanca property purchase
Ill-timed currency fluctuations can inflate the cost of your new home
The latter part of Spring is the prime time to buy a property in Spain. And it´s hardly surprising, as with luck and a good conveyancer you can be in the property in time to enjoy the whole of the forthcoming summer.
Some of the best properties are held back for it, or pushed forward to the market to meet the anticipated rush of buyers.
Even better, North European currencies like the British Pound and Swedish Krona tend to strengthen against the Euro in the late springtime too, which certainly gives you the feel-good factor as you type your budget into the property search function.
But there is a potential risk in rushing over to look at Spanish property while your currency is strong, however.
Unless you lock in your currency at the rate that you make your offer at, and pay your deposit, what will you do if the your currency exchange rate subsequently falls before you pay the final balance?
It's a serious risk.
For example, on the UK´s May Day bank holiday last year you would have got an exchange rate of €1.18 per Pound Sterling. If you had agreed to buy a €200,000 property on that day (yes, we were working), you would have allowed for around £169,500 in Sterling funds.
But if you had completed in time for the school summer holiday in July, you would have got only €1.11 and your €200,000 investment now costs £180,000. Finding that extra £10,500 could be a big problem, and it's certainly quite a hit to your investment.
If you were unable to find the money you could have lost not just the property, but your deposit too, and nobody wants that to happen.
Costa Blanca property: safeguarding your purchase price
You could gain too of course, but it's a big risk, and could be one gamble that you might not be prepared to take.
Our partners at Smart Currency Exchange analysed whether the Pound significantly lost value (by more than 1%), over the course of the month following making an offer. They found that in the two years up to April 2018, the Pound dropped in value 60% of the time.
There were 120 days over the past two years when, if you had made an offer on a €200,000 property, by the time you came to pay a month later you would have had to find at least an extra £6,000.
Most of our clients prefer to know that the price they budgeted for when they make the offer is the one they will finally pay. Speak to us about how we can lock in your exchange rate when you agree the purchase.
We have properties for sale in Pilar de La Horadada to suit your budget
Do you like the property featured in this article? This simply stunning detached villa in Pilar de La Horadada has just received a significant price reduction. Offering 4 bedrooms, 3 bathrooms, and an extensive plot comprising a mature garden, garage, summer kitchen, and a private swimming pool. For more quality Spanish homes, click here to see all of our properties for sale in Pilar de La Horadada right now.
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Apartment - Resale - Pilar de la Horadada
Spain - Costa Blanca South - Pilar de la Horadada94.000€
Modern apartment, centrally located in Pilar de la Horadada , and just a 10 minute drive to the coast and local beaches. Built in 2013 and beautifully presented the ground floor apartment for sale offers 2 bedrooms with fitted wardrobes, bathroom, kitchen,lounge and dining room and impressive South West facing terrace for year round sun. Closed building with lift access and private underground , secure parking. All amenities are within walking distance and a short drive to local beaches....62 2 1
Town house - Resale - Pilar de la Horadada
Spain - Costa Blanca South - Pilar de la Horadada199.000€
Extensive town house situated in Pilar de la Horadada. The property for sale offers 3 doube bedrooms, 3 bathrooms, ample lounge/dining, kitchen and garage. Outside space offers low maintenance patio garden and terraces. Community boast swimming pool and jacuzzi for residents. Situated on the direct outskirts of Pilar de la Horada centre and a few minutes walk to all necessary amenities. Under a 10 minutes drive to the sandy beaches of T orre de la Horadada . Contact Inmo Investments...149 3 3
Villa - Resale - Pinar de Campoverde
Spain - Costa Blanca South - Pilar de la Horadada370.000€
Extensive detached villa for sale set on a private 1000m2 plot in Pinar de Campoverde. The villa offers 180m2 of living space and comprises 3 bedrooms, 2 bathrooms, large lounge/dining room with fireplace, separate kitchen and ample storage. Super outside space with summer kitchen, private swimming pool, ample sun terraces and gardens plus solarium for year round sun. The property is well maintained and sold fully furnished with many extras.180 1.000 3 2
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Finca - Resale - Pinar de Campoverde
Spain - Costa Blanca South - Pilar de la Horadada1.300.000€
A simply magnificent country house located in Pinar de Campoverde. The villa for sale offers extensive luxury accommodation over three floors, a modern imposing design packed with traditional Spanish character features, and an impressive 737m² of living space. Built in 2006, the property offers a covered terrace leading to a wrought iron gated lobby and a grand entrance hall with flooring laid to red patterned marble. The villa features 6 magnificent bedrooms complete...737 57.000 6 9
Villa - Resale - Pinar de Campoverde
Spain - Costa Blanca South - Pilar de la Horadada229.000€
This spacious detached villa for sale is situated on a large private plot offering lots of outside space. Located in Pinar de Campoverde, close to Pilar de la Horadada, this home offers a light and airy living room, an independent dining room in the porch area, a fully equipped kitchen, large bathroom, and 2 bedrooms. The property also provdes additional guest accomodation with it's own private bathroom. The property is situated on an impressive 600m2 plot which boasts a spacious garden, a...110 600 3 2
House - Resale - Pinar de Campoverde
Spain - Costa Blanca South - Pilar de la Horadada109.995€
Townhouse next to the communal pool located in the quiet area just 5 min drive to Lo Romero Golf course.Comprises front garden with BBQ area,terrace area,good size lounge,separate kitchen with separate utility room/rear garden,1 double bedroom,w/c downstairs,upstairs is 2 double bedrooms both with terrace,1 family bathroom.The property need a little TLC.Price to sell.3 2
Detached Villa - Resale - Pinar de Campoverde
Spain - Costa Blanca South - Pilar de la Horadada
A charming detached villa for sale in Pinar de Campoverde. The villa offers 2 full sized double bedrooms, shower room with fitted suite, modern open/plan kitchen with breakfast bar, and a spacious living room with dual aspect windows for a light and airy feel, and a dining area. Outside space boasts a covered dining terrace for al fresco dining, an impressive rooftop solarium for year round sun, and a mature garden that wraps around the property . Sold fully furnished, the villa...70 159 2 1