News: Forward contracts explained, fixing the cost of Costa Blanca property
Using Forward Contracts to fix the cost
of property purchases in Spain
Protecting your overseas property purchase from exchange rate movements
We wrote recently about how the risk that a change in the exchange rate can drastically increase the price of a Spanish property you have agreed to buy, in the time between making your offer and making your final payment.
Over the past two years the Pound has strengthened against the Euro in the late springtime – when many of our customers view and make offers on properties – but then fallen just when people come to complete their overseas property purchase.
That´s bad news, and it can add thousands to the price that you thought you were paying. If you can't make up the shortfall in your Euro currency, you might have to pull out of the deal and lose your deposit.
Why take the risk? Just when you should be enjoying the prospect of completing on your property in Spain – choosing patio furniture, brushing up on your Spanish, taking that tapas cookery course – instead you´re fretting over exchange rates!
Forward Contracts: fixing your Spanish property purchase costs for peace of mind
It is only for those buyers who know they are going to buy, because it involves paying a 10% deposit and making a legal agreement to change the rest of your purchase currency within a year.
You then pay the rest of the money when the property sale completes, at the fixed exchange rate set when you made the contract. It really does buy you peace of mind.
You can use a forward contract for regular payments too. Suppose you are paying for a property to be built in stages, or are having work undertaken over time, or after you move to Spain you are receiving an income from rentals, pensions or investments in British Pounds or Swedish Krona.
Those costs, or income, will vary by the minute unless you lock in an exchange rate, making responsible budgeting impossible.
By securing your regular payments exchange rate with a forward contract you know exactly what your costs or income will be for at least the next year.
Speak with us about currency exchange solutions, and find out how a forward contract might help you manage the costs of buying a Costa Blanca property. We work with Smart Currency Exchange, rated as "Excellent" on Trustpilot for money transfers and currency exchange.
We have properties for sale in Villamartin to suit your budget
Do you like the property featured in this article? This simply stunning detached villa in Villamartin has just received a significant price reduction. Offering 4 bedrooms, 3 bathrooms, a solarium with a sunroom, underground garage, and both communal and private swimming pools. For more quality Spanish homes, click here to see all of our properties for sale in Villamartin right now.
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Villa - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin396.000€
Beautiful detached villa situated Blue Lagoon , a quiet suburb of Villamartin . This extensive and well maintained property for sale offers an impressive 309m2 build size on a very spacious 800m2 plot. The villa comprises 4 bedrooms, 3 bathrooms, very spacious lounge/dining room and kitchen, plus garage. Outside space boasts established gardens , ample sun terraces and private swimming pool. Maintained to a high standard and sold fully furnished with many extras, this is a stunning...309 800 4 3
Villa - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin399.000€
Outstanding, detached villa at Blue Lagoon on the outskirts of Villamartin . This impressive villa offers an amazing 403m2 of living space with separate living accomodation for guests or extended family. In the main villa the property boasts, large lounge/dining room with picture windows, separate kitchen with further dining space and large patio windows with direct access to the sunny terrace, 2 double bedrooms, full bathroom, conservatory, laundry/utility room, storage, garage and games...403 680 3 2
Semi detached villa - Resale - Montegolf
Spain - Costa Blanca South - Villamartin139.995€
Sunny, South-East facing semi detached villa for sale situated in a quiet suburb of Villamartin . The property offers a traditional English bungalow style over 1 floor and comprises 2 double bedrooms, 2 bathrooms, lounge/dining room with feature gar fireplace, separate, modern fittd kitchen with utility area and glazed sun terrace, perfect for winter sun . Outside space offers garden to the front which is low maintenance with many pot plants and a walk in storage under build under the sun...2 2
Penthouse - Resale - Lomas del Golf
Spain - Costa Blanca South - Villamartin83.000€
Exceptional promotion of penthouse apartments in popular Lomas de Golf urbanisation, located in Las Filpinas, Villamartin . All properties have never been lived in, and is offered in very good condition. Each apartment boasts 2 double bedrooms with fitted wardrobes, a full family bathroom, fitted kitchen and spacious living room with patio doors leading to a sunny balcony terrace. Additionally, the penthouses for sale boast impressive private rooftop solariums for year-round sun with...67 30 2 1
Townhouse - Resale - Lomas del Golf
Spain - Costa Blanca South - Villamartin145.000€
An extensive townhouse for sale in Lomas de Golf in Villamartin. The property offers accommodation across two storeys, with 3 double bedrooms with fitted wardrobes, a full family bathroom, a downstairs WC/cloakroom, a fully fitted and equipped kitchen, and a bright and spacious living room. Both upstairs bedrooms feature patio doors leading to sunny private balcony terraces, and a wrought iron spiral staircase leads up to a rooftop solarium with distant sea views. The property...3 2
Apartment - Resale - Lomas del Golf
Spain - Costa Blanca South - Villamartin82.500€
Top floor bungalow style a partment for sale , overlooking the communal pool at Lomas del Golf in Villamartin. The property offers 2 double bedrooms, bathroom, ample lounge/dining room and open plan kitchen, plus balcony terrace overlooking the communal pool and gardens. The property is sold fully furnished and key ready. Set on a community with 7 communal pools for residents and ample green areas. . Less than a 10 minute walk to the Villamartin Plaza which offers amenities including...65 2 1
Townhouse - Resale - Villamartin
Spain - Costa Blanca South - Villamartin89.000€
Town house for sale located in a quiet area of Pueblo Principe, Villamartin ,within walking distance to bars,supermarket,bus stop and La Fuente C.C. center.Comprises garden area,lounge with american style kitchen,2 bedrooms,1 bathroom.The property needs a little TLC but offers excellent value for money. Contact Inmo Investments today for a viewing2 1
Villa - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin299.995€
Stunning south facing traditional Spanish villa situated in a quiet residential area close to amenities.The property has been completely modernised and re-designed internally to make the rooms large, light and practical.Comprises large glazed in terrace/breakfast room area looking over the private pool and garden areas,good size lounge,separate kitchen,3 very large bedrooms,three bathrooms with showers and underbuild that could be 4th bedroom,gym or games room,huge private roof solarium from...500 4 3