Awful Euro rate
If you're in the UK and looking to buy a property in Spain (or Europe) then I really don't think it's the best time in terms of exchanging your pounds for euros. The rate is terrible, the worst it's ever been.
You could negotiate a discount on a property in Spain but it can more or less be wiped out by the extra you would be paying at the moment to buy your Euros.
I've recorded a video on this subject for Eye on Spain. Watch the video here.
If you want to leave any comments please click the "comments" link below.
You could negotiate a discount on a property in Spain but it can more or less be wiped out by the extra you would be paying at the moment to buy your Euros.
I've recorded a video on this subject for Eye on Spain. Watch the video here.
If you want to leave any comments please click the "comments" link below.
posted by Eye on Spain at 6:21 PM
9 Comments:
Hi an excellent video well done.
Gill Nicholson
Hi Justin.
Yes very good information well done.
I purchased of plan at the end of Nov 2001 on a 2 year build time.
I followed the same informaton as you give in the video. At the time of my forward purchase I managed to get a Euro/pound rate of 1.6375 to the £. Thus purchasing all the Euros that I needed to complete Dec 2003 all fo a 10% deposit with an agent. Yes following some sound advice goes a long way.
I had a friend that purchased at the same time who did not follow advice and paid all his payments by sterling cheques. But at the end of the build time. His property cost him £12.000 more than he had planned for. The cheques were only as good as the rate when the builder presented the cheque to his bank. Also the Builder loaded the ballance at the end with all his bank charges.
Keep up he good work Justin. If you are at anytime in the Puerto area. My shout. Sorry for aany wrong spelling.
I'm sorry this is not about the video havent watched it yet, but i will. Does anyone know if the mortgage rate is going to at least even out or come down. My sons have a mortgage in Spain, taken out 2 years ago, at under 3% its now nearly doubled on their place in Spain and is crippling them.
Thanks
Norma
People are advised about the benefits of buying currency in advance when they initially buy the property. Of course you cannot forward buy the currency unless you have a deposit for this, adn if you do not then, the costs for this increase if you have to borrow to acheive this and pay interest. This can vary depending the currency company you decide to work with. There are many to choose from, some better than others. tIt is true that he rates have fluctuated over the past 2 years,past performance is never a guarantee of the future on either property or currency exchange. There are other ways of reducing the impact of the current los rates on the cost of your purchase. Ie, taking a mortgage in Euro's and if this is not something you had planned on keeping in the long term, this can be repaid when the currency rates increase again. The real message here is not to Panic.The people who generally give opinions and panic people, do not have all of the information and lose the point along the way. If we all took literally everything we read, we would never do anything.For example - now is not a good time to buy in Spain. I hear the Uk housing market is suffering and many people are not buying? Not sure this is being talked about much though?
Hi Justin,
Very interesting video.What i dont understand is why the exchange rate has dropped so violently and what would need to happen for the pound to strenghen again.Without some information i wouldnt be able to judge when to buy euros unless of course the exchange rate was artificially high as was a few years ago.
Hi Justin
Great Video and well done to you!!!
We took a Spainish mortgage due to the rates being better then the U.K.
We have amended our Standing Order that we send to our Spanish bank due to the other items that people never inform you off i.e. Life Insurance.
Hi Justin.
Just watched the video, well done.
I am moving to Spain this year about March and buying outright. I will be taking your advice, and contacting 'moneycorp' asap.
Keep up the good work.
Ian Mc
Hi Justin
Goood information but unfortunately a liitle late for some.
When we agreed to buy in May 2006,the same day we opened a Spanish bank account and on our return to the U.K. transferred all the Euro's we would require to finalise the purchase and buy furniture to the account. We have received a decent rate of interest on the monies in the meantime.
After reading your article, I decided to work out how much more it would have cost us if we were to transfer the money now, how glad we are for what we decided to do.The extra amount worked out to be approx £15000.
An excellent video Justin. We are completing on a resale next week but unfortunately, didnt watch the video until we realised our place was going to cost us another £6000+ because of the drop in the exchange rate. However, we contacted Moneycorp, arranged a rate, transferred the money to our Spanish account and hopefully have saved some money. Moneycorp are so easy to deal with and really friendly. If only we had watched your video in November when our offer was accepted. No doubt the exchange rate will improve now we've purchased our money - if it does, you can thank us!
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