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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Apartment - Resale - Villamartin
Spain - Costa Blanca South - Villamartin89.995€
Fantastic rental and investment opportunity.A large one bedroom apartment at 55m is a high quality TM built, with the south facing terrace overlooking the communal pool,garden and play ground,3-4 min. walk to Villamartin plaza and golf course and with private parking great rental potential, and as in new condition furnished to a good standard.Every extra included.1 1
Villa - Resale - Rioja
Spain - Costa Blanca South - Villamartin249.000€
South West facing detached villa for sale located close to all amenities and within walking distance to Villamartin clubhouse and Plaza. The property comprises glazed in conservatory style sun terrace leading to lounge/diner and American style kitchen with utility room. There are 3 bedrooms, one with a large balcony, two bathrooms and eaves area converted into office/study. Off road parking, patio garden and BBQ area. This property has been well maintained and is furnished to a high...3 2
Apartment - Resale - Pau 8
Spain - Costa Blanca South - Villamartin119.995€
Fantastic south facing ground floor apartment for sale overlooking the garden areas located in a gated complex within walking distance to Villamartin plaza at the renowed Pau 8 urbanisation. The well maintained apartment offers 2 bedrooms, 2 bathrooms, (master en-suite) ample lounge, American style kitchen and patio with views over the communal green areas. Sold unfurnished but with quality fixtures including marble bathrooms features, white goods, built in wardrobes, air conditioning and...85 2 2
Villa - Resale - Villamartin
Spain - Costa Blanca South - Villamartin185.000€
Beautiful Detached villa totally renovated with extraordinary views in Res. Vista Azul - Villamartin.100 3 2
Townhouse - Resale - Blue Lagoon
Spain - Costa Blanca South - Villamartin84.000€
Lovely Spanish style bungalow located on the residential area of Blue Lagoon. Comprises sunny front garden, covered terrace area, good size lounge and kitchen, large bathroom with bath and separate shower, 2 bedrooms, sunny rear courtyard leading to private roof solarium with storage room and nice views. The property has been refurbished with new windows, bathroom, and oil central heating.65 100 2 1
Townhouse - Resale - El Galan
Spain - Costa Blanca South - Villamartin144.000€
Townhouse located in a quiet area of Blue Hills.The property comprises good size lounge with dining area, separate kitchen,3 bedrooms,2 bathrooms,sunny bedroom balcony,good size private roof solarium with fantastic sea views and BBQ area,garage,communal pool.The property is in good condition and sold furnished.80 3 2
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
Villa - Resale - El Galan
Spain - Costa Blanca South - Villamartin
Lovely detached villa situated in a residential area.Comprises 400sqm private sunny plot with private pool,good size off road parking,large glazed in terrace looking on to the pool and gardens,good size lounge,separate kitchen,3 double bedrooms,2 bathrooms,opportunity to convert the garage /underbuild area in to a large self contained apartment.400 3 2