It is vitally important to be aware of currency exchange issues both before and after buying a property in Spain. This section will give you the information that you need to know, on how you can both secure your financial position during the buying process and then importantly, how you can save money by using a currency specialist such as ‘Currencies Direct’, the New Wave Villas preferred currency partner, after you have purchased and when you are sending over regular or ‘one off’ money transfers to pay general bills or a mortgage.
New Wave Villas firmly believes that educating yourself on the implications of currency exchange fluctuations and knowing what your options are to minimise the risks and in fact arrange transfers ‘charge free’, is a very useful part of purchasing and owning a property in Spain. In 2013 the pound to euro rate fell to 1 pound = 1.05 euros. One year on, the rate much improved to over 1.25 euros to 1 pound, offering UK buyers a 20% increase in spending power on their Spanish property purchase.
When purchasing your property abroad you will need to pay for at least part of the purchase, in the foreign currency of that country, so for Spain this will be in euros.
Your traditional high street bank may seem the obvious choice for where you change your savings, due to ease and tradition, but they are likely to offer you the tourist rate on the exchange of your hard earned cash, as opposed to the commercial rate that a specialised foreign exchange company will offer. So it will cost you much more as the rate will not be as good and they will also charge you a set fee.
Due to the longstanding relationship between New Wave Villas and Currencies Direct, we will ensure that you are offered the best preferential rates possible on the day that you order the transfer.
Due to the volatility of the currency market exchange rates are constantly changing, so can vary from one day to the next. However, there are various options available to help customers get a great rate.
- Spot Transactions Buy now, pay now. These are ideal for anyone who needs their currency straight away as the currency is purchased today at the current rate. However, if you have time to spare before your payments are due it may be wiser to consider a Forward Transaction.
- Forward Transactions Buy now, pay later. These allow you to secure a rate for up to 18 months in advance to protect yourself against any movements in the market. A small deposit holds the rate until the balance becomes due when the currency contract matures. This option not only protects against possible drops in the exchange rate but also gives you the security of the currency you need at a guaranteed cost, regardless of fluctuations in the market.
- Limit Orders Allow you to place an order in the market for a desired exchange rate. This has the advantage of protecting you against negative exchange movements whilst still allowing you to gain from a positive movement. Your request is entered into the system and an automatic currency purchase is triggered once the market hits your specified rate. Using the options above clients can save thousands of pounds on their currency transfers what better way to kick start your life abroad?
- Regular Payments Once you have become the owner of your dream property, it is highly likely that you will need to send regular monthly payments from home whether for mortgage payments, maintenance expenditure or transferring pensions or salary. Using a reputable foreign exchange company can make this process hassle free and they are likely to offer you better terms than your high street bank. By setting up regular monthly direct debit payments you can benefit from extremely competitive rates without the monthly worry.
- Currencies Direct If you haven't had to deal with these sort of transactions before it can seem a little daunting, but Currencies Direct, the market leader in foreign exchange, can help give you an exciting and cost-effective start to your life abroad.
The information you need to potentially save thousands is only a phone call away
Offering a tailored service to each client, you will be assigned a dedicated dealer to talk with you, as often as you require, about up-to-date movements and general predictions on market fluctuations in plain English! Offering competitive rates for all major currencies they will identify the best opportunities for you and your money. With no charge for registering, no obligation and no commission fee, Currencies Direct offers a stress-free method of transferring funds promptly and accurately.
So contact New Wave Villas for any further information and let us know when you are ready to set up an account with Currencies Direct or make a trade with them and we will provide you all the advice and assistance that you need.
Call: (+34) 677 475 068