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
Savvy summer sellers drive best July for sales agreed since 2020
The average price of property coming to the market for sale drops by a seasonal 1.3% (-£4,969) this month to £368,740. August’s price drop is in line with the ten-year average following the bigger than usual falls in June & July Savvy summer sellers are pricing realistically to attract holiday-distracted buyers. Lower asking prices and…
Read More 
Expert Review: Pantego Electrical Services – Reliable and Affordable Solutions
When it comes to maintaining safety and comfort in your home or business, high-quality electrical work is crucial. For residents and businesses in Pantego, reliable electrical services are available through licensed professionals who prioritize customer satisfaction. In this review, we explore Pantego Electrical Services and highlight why Darby Electric Service is a trusted choice for the community.…
Read More 
Storytelling for Homeowners: Producing Content That Connects Emotionally
In the quick-paced global of online facts, information by myself is rarely sufficient to encourage or have an effect on. Whether you’re a home owner sharing your protection adventure, a blogger covering indoors traits, or a real estate professional assisting customers discover their dream homes, storytelling is the important thing to building belief and emotional…
Read More 
This Summer’s Extreme Heat: What It Means for UK Gardens
The UK has been enjoying plenty of warm sunshine during the early weeks of the 2025 summer season. In predictions made by the Met Office for the three-month outlook there is plenty more hot weather to come. According to the government agency, the UK’s meteorological summer is twice as likely to be hotter than normal…
Read More 
No-fault evictions by bailiffs up 8%
New figures show that in the 12 months since Labour came into Government, no-fault evictions by bailiffs in England have risen by 8%. Labour has pledged to end no-fault evictions under its Renters’ Rights Bill, which is going through Parliament. According to the latest figures from the Ministry of Justice there were 11,402 repossessions by…
Read More 
Leasehold Lettings Under Pressure: Landlords Blocked from Improving Flats
New research from LRG (Leaders Romans Group) reveals that leasehold structures are creating a growing barrier to progress in the rental sector, limiting upgrades, pushing landlords away from flats, and lowering tenant confidence in how buildings are managed. According to LRG’s most recent Lettings Report, 58% of flats let by landlords are leasehold. Among these,…
Read More