DON’T PANIC YOU CAN STILL BUY !!!
October 19, 2016
OK don’t panic, you were going to buy a small property in Spain for about ??? euros but now the pound to euro rate is poor. This of course means that your budget won’t go as far. What can you do?
- Don’t buy
- Wait and see what happens
- Buy anyway
- Look for alternatives
- This is the simplest answer though you may be disappointed. Or you may need to buy a smaller property or more basic property than you planned.There are still plenty of cheap options available though they may not be in the location you were thinking about.
- Waiting to see what happens could mean you have to wait until Brexit is completed and the dust has settled. On the other hand the pound may strengthen and we will be back to square one! Even economists have no idea what or when things will happen as with the best will in the world exchange rates don’t do what is expected all the time! Waiting could mean that prices in the Spanish property market will rise while you are waiting so you are still in the same boat! British buyers may have problems, but for those buying in euros anyway, things won’t have changed. The property market will continue with its ups and downs. At the time of writing pricesareup. As new phases are built, many developers are also charging higher prices.
- You may feel you might as well buy anyway. If your budget is small it may make the search for a property you can afford more difficult. This is where a Spanish Property specialist will be able to advise where the best deals can be found. Often they will have access to properties not on the open market. You may, if you can, need to find some extra money in your piggy bank to fill the gap caused by the exchange rate. Take care not to over-stretch yourself as money worries will take away some of the pleasure the property gives.
- Look at different ways of buying ( see also number 1). We recently wrote a blog about clubbing together with friends or family to buy in Spain. This could be one solution. Another possibility is using your money as a deposit and having a mortgage. There is still availability on certain properties to have a 115% mortgage. This means thatall fees incurred with the purchase are accounted for. Mortgage payments may be relatively small. So, though you may finish up with a larger more expensive property you get the use of it straight away by using your budget to cover mortgage payments. Plus you avoid any price rises you may have incurred while waiting to buy! There is of course the possibility of re-mortgaging your own property in the UK. This again is where specialist advice will be needed to get the best deal.
With resales if you see a property you like and the vendor is British, we can make the negotiation quite simple – he/she as vendor is at present going to get more pounds for the euros which buy the property, whilst the cost to the purchaser who has the monies in pounds will see that this effectively cancels out the drop in the exchange rate of pounds/euros. Everyone’s happy!!
ASK US FOR MORE DETAILS OF HOW IT WORKS
You May Also Enjoy
London property values set to fall
The latest market analysis from House Buyer Bureau has found that London is now the only region of Britain where house prices continue to trend downwards, with the average home in the capital forecast to lose almost another £5,000 in value before the end of the year should current market conditions persist. House Buyer Bureau analysed…
Read More 
Second-steppers turn to higher LTV mortgages as deposits fall
Barclays mortgage data shows the average value of home movers’ (non-first-time buyers) deposits fell -24.8 per cent year-on-year However, the average purchase price for home movers increased 1.0 per cent year-on-year in June, as borrowers make use of higher loan-to-value mortgage products to climb the ladder 34 per cent of prospective second-steppers say they feel…
Read More 
Conservatories fall out of fashion
Conservatories fall out of fashion as fewer than one in 10 homes boast the former must-have feature The latest market analysis from eXp UK has revealed that conservatories appear to have fallen out of favour with England’s homeowners, with fewer than one in 10 properties currently listed for sale offering the once-popular home improvement.…
Read More 
95% of estate agents say homebuying reforms could speed up property transactions
The latest survey by GetAgent.co.uk has found overwhelming support from estate agents for the Government’s proposed homebuying reforms, with the vast majority believing the changes will create a faster, more stable and more efficient property market. The proposed reforms are designed to modernise the homebuying process by introducing greater upfront information, earlier legal certainty and measures…
Read More 
Private rent and house prices, UK: July 2026
1. Main points Average UK monthly private rent increased by 3.3%, to £1,388, in the 12 months to June 2026 (provisional estimate); this annual growth rate remained unchanged from the 12 months to May 2026. Average rents increased to £1,446 (3.4%) in England, £843 (4.9%) in Wales, and £1,012 (1.3%) in Scotland, in the 12 months…
Read More 
Tenant demand continues to strengthen in Q2
The latest research by The Letting Partnership has found that tenant demand across England continued to strengthen during the second quarter of 2026, with 29.7% of all rental listings already securing a tenant. Demand has increased by 2.3% over the quarter and now sits 0.3% higher than the same time last year, demonstrating the continued…
Read More