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​3 tips to get the most euros when you buy your Alicante - Torrevieja property

27 Aug 2016
​3 tips to get the most euros when you buy your Alicante - Torrevieja property

3 tips to get the most euros when you buy your Alicante - Torrevieja property

26.08.2016

Do you intend to buy a property in Torrevieja this year? If so, it goes without saying that you’ll want the best exchange rate! After all, you get more euros to buy your ideal Torrevieja property, when sterling is strong versus the common currency. With this in mind, what can you do to get the best exchange rate in 2016, in spite of the UK’s vote for Brexit? Well, let’s take a look.

1. Set up a forward contract. The first thing you can do to get the best exchange rate when you buy a Torrevieja property, is to set up what’s called a “forward contract”. This enables you to lock in today’s exchange rate, protecting you against any possible Brexit-related volatility further down the line. Instead, even if sterling weakens in the months to come, you’ll get the rate you’ve fixed!

To set up a forward contract, just tell your currency broker that that’s what you’d like to do. You’ll pay down 10% of the total amount you wish to transfer, and can transfer your money at any time you like in the next 2 years. There are no fees for a forward contract. Instead, you just benefit from the peace of mind of knowing exactly how many euros you’ll get to buy your Torrevieja property!

2. Don’t get greedy. When you need to transfer money to buy a Torrevieja property, the temptation is to wait and see how high the exchange rate goes. However, the foreign exchange market is in fact extremely volatile, and sterling is liable to fall just as quickly as it rises. With this in mind, instead of waiting, transfer your money to Spain as soon as a good exchange rate becomes available!

After all, the alternative is that, you wait to see how high the pound rises versus the euro, at which point it drops, not long before you need to close your purchase of a Torrevieja property.

3. Use a currency broker. In addition, when you transfer money to Spain to buy a Torrevieja property, use a specialist currency broker instead of your bank. This is because a foreign exchange dealer will get you an exchange rate up to 5% better. This will get you hundreds of euros extra in your Spanish bank account when you buy a Torrevieja property, which is clearly a great bonus!

For example, let’s say you intend to transfer £74,000 to Spain, to buy a 3-bedroom apartment with a swimming pool in Guardamar del Segura. At today’s exchange rate of 1.17, you’ll receive up to €86,580 for this sum, or €370 more than if you’d made the same transfer with your bank! Clearly then, this is a very welcome bonus, and the perfect way to start enjoying your new property in Torrevieja, whichever you buy.

With all this in mind, you're in a fantastic position to buy your property in Torrevieja, in spite of the uncertainty from Brexit!

By Peter Lavelle at foreign exchange broker Pure FX

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