This requires serious planning, especially if you are buying into a new off-plan development where there are several ‘stage payments’ that fall due during the construction of your property. Even those people buying a resale house will have to put down 10% of the purchase price when entering into a purchase contract.
You will know the price of your new home in Euros and this should not increase unless, for example, you upgrade the specification of your new-build villa by adding a swimming pool. However, you will not know how much it will ultimately cost in Sterling until you have bought all of the Euros to pay for it, and this will be determined by the timing of your currency purchase.
Be aware that the cost of Euros can fluctuate quite rapidly depending on global currency movements and political factors that lie outside your control.
The risk-free solution would be to buy all the Euros immediately, thus fixing the cost at the outset. You will not only know the price of the property but also the cost of the Euros to pay for it. Many people choose to appoint a specialist currency brokers who have teams dedicated to overseas purchasers - to buy Euros as soon as they hit a particular rate of exchange.
Generally speaking, the high street banks and building societies are not in the best position to devote the time and attention required advising you about buying currency.
Specialist currency brokers are the safest means of ensuring the conversion of your Sterling into Euros is done safely and with the minimum of risk. Offering a comprehensive service for moving money abroad, many brokers work closely with agents, developers and lawyers involved in the sale of Spanish real estate.
Once you have the necessary funds, and have decided which property to buy, your next step is to contact the vendors and instruct your legal representative to check that they have a good legal title to the property and carry out the relevant searches at the local Property Register.
© The Rights Group SL 2006 (Marbella)
Mark FR Wilkins
www.therightsgroup.com (under review)
+34 600 343 917
Please note that the information provided in this article is of a general interest nature and intended as a basic outline only. You are well advised to contact a professional for advice specific to your circumstances. Nothing contained in this article should be seen or taken as the writer or publisher providing legal or financial advice.