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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Bungalow - Resale - Pau 8
Spain - Costa Blanca South - Villamartin124.990€
Super sunny, ground floor bungalow style apartment situated in a prestigious and well orientated location in Pau 8, Villamartin. The well maintained property for sale offers 2 double bedrooms with fitted wardrobes, master with en-suite bathroom, further family bathroom, open plan lounge/dining room with fireplace, American style kitchen with breakfast bar and adjoining utility, storage area. Set on an ample corner plot with covered balcony terrace and very spacious low maintenance, South...65 115 2 2
Townhouse - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin118.000€
Renovated town house for sale located in Blue Lagoon at the sought after Bosque de la Lomas II complex. The property offers 82m2 of living space and comprises 3 bedrooms, 2 bathrooms, lounge, dining room, fully equipped kitchen 2 terraces , front and rear of 22m2 and 13m2 respectively and upper balcony terraces, offering pool views from the rear of the property. Sold in perfect condition as seen. Community offers well maintained gardens and communal pool for residents. Walking...82 35 3 2
Villa - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin249.000€
A spacious detached Spanish style villa for sale in Blue Lagoon, Villamartin. The villa offers accommodation over a single floor, with very large glazed in terrace area with views to the sea, independent kitchen, spacious living room with dining area, family bathroom, and 2 double bedrooms including extra large master bedroom with en-suite. The villa is situated on a large south facing private plot with an elevated Mediterranean garden, large private swimming pool with sunbathing area,...187 400 2 2
Villa - Resale - El Galan
Spain - Costa Blanca South - Villamartin269.995€
This lovely 3 bedroom 3 bathroom Villa, private swimming pool large solarium with sea views, mostly completed studio apartment. The entrance is to the car parking and the studio apartment with galley kitchen and main room, with oil storage tank for central heating. The garden has pot plants and shrub boarder and fruit trees. The swimming pool has a cover and glazed shower room / summer house. The front door into the sun terrace which has been glazed to make a dining area which leads to the...3 3
Villa - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin275.000€
Spacious detached villa for sale , set on a landscaped plot of approx 400m2 on Blue Lagoon . The impressive villa offers in the main living area,large open plan lounge/dining area with feature fireplace a patio door leading to a front terrace, fully fitted kitchen with utility room, 3 good sized bedrooms, 2 with fitted wardrobes, the master bedroom has an en suite shower room, there is also a good sized family bathroom.The property also features a large rooftop solarium and also a...150 400 4 2
Penthouse - Resale - Plaza
Spain - Costa Blanca South - Villamartin
Perfect location for this stunning penthouse, duplex apartment on the Villamartin Plaza . The apartment offers 87m² of living space and comprises 2 bedrooms with fitted wardobes, family bathroom, an other WC, spacious lounge/dining room, American style kitchen, utility area, terraces from the lounge and master bedroom and impressive 26m² penthouse roof top solarium for year round sun and offering 360 degree panoramic views over the Villamartin Golf course. Boasting jacuzzi, BBQ,pergola...87 26 2 2
Villa - Resale - Villamartin
Spain - Costa Blanca South - Villamartin1.495.000€
Simply stunning, luxury villa situated just a stones throw to the Villamartin Golf course and Plaza. This outstanding villa offers an impressive 500m2 of living space, on a private 1000m2+ plot. The well maintained villa offers in brief 4 double bedrooms, 5 bathrooms, impressive entrance hall and reception room, lounge/dining area, open plan, fully fitted, mdoern kitchen with breakfast island and storage. The outside space boasts low maintenance patio garden, private swimming pool, feature...500 1.053 4 5
Villa - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin232.000€
Well presented, detached villa for sale in Blue Lagoon, a quiet suburb of Villamartin . The villa offers over 3 levels an impressive 150m2 of living space and comprises in total 4 bedrooms, (separate apartment) 2 bathrooms, 2 lounges, 2 fully equipped American style kitchen and laundry/utility room. The outside space offers both upper and lower terraces, solarium, private salt water pool , BBQ area for al fresco dining and off road parking. Sold fully furnished with many extras...150 400 4 3