Tips to Get A Top Exchange Rate when You Buy Your Spanish Property
Do you intend to buy a property in Spain this year? If so, whether you've got your eye on a 4-bedroom elegant flat in Barcelona, or a 5-bedroom spectacular apartment in Madrid, you'll want a fantastic exchange rate.
After all, when the pound flies high against the euro, you'll receive more euros, when you transfer money to your Spanish bank account, to buy your ideal property in Spain! Given this, what can you do to maximise your foreign exchange rate this year, and lift your euro total? Well, here are 5 easy tips for you. Keep them in mind to save on your currency!
1. Transfer money with a currency broker instead of your high street bank, to get more euros.
This is because your high street bank expects you to use them to transfer money to Spain, as your first port of call. Given this, they use this as an excuse to offer you inferior exchange rates, taking larger margins for themselves.
Instead, a currency dealer will provide you outstanding exchange rates. Why? Well, because they’re foreign exchange specialists, meaning they deal exclusively in currency, unlike the banks. So, you'll receive a higher euro total to buy your dream Spanish property!
2. Plan your money transfer to Spain as far in advance as you can.
This is because, the earlier you think about transferring your money to Spain, the more time you give yourself for an excellent exchange rate to become available.
By contrast, if you wait until the last minute to exchange currencies, just when you need the money in Spain to complete your property purchase, you'll have to accept whatever exchange rate is available there and then. For instance, in 2 months between October and December 2016, the pound moved 10 cents against the euro. So, it pays to plan ahead!
3. Accept a great exchange rate as soon as it becomes available.
When we transfer money, it's tempting to wait as long as we can, to see how high the exchange rate goes. The thing is though, the foreign exchange market is extremely volatile, and a rising exchange rate can fall in the blink of an eye.
With this in mind, to ensure you transfer money at the exchange rate you need to buy your beautiful Spanish property, exchange currencies when an acceptable rate arises. This will ensure you obtain the euro total you're looking for, getting your dream in Spain off to a flying start!
4. Protect yourself against volatility in the exchange rate, with a forward contract.
Are you worried that the exchange rate might fluctuate between today and when you buy your Spanish property? If so, you can shield yourself against ups and downs in the exchange rate with what's called a forward contract.
This fixes your exchange rate, so that even if sterling shifts dramatically against the euro in future, you get the exchange rate you've previously locked in. This way, you're safe from currency volatility! This gives you security and peace of mind to buy your Spanish property.
5. Seek guidance from a friendly, professional currency broker.
Is this the first time you're transferring a significant sum of money to Spain? Are you curious about what's affecting the exchange rate at the moment? If so, just speak to your foreign exchange dealer. They'll talk you through the transfer process in simple, straightforward language, and answer your questions.
What's more, they'll tell what factors are influencing the currencies right now, so you'll be in a fantastic position to decide when to transfer your money. Hence, you can relax about buying a property in Spain!
With these tips in mind, you'll get a fantastic exchange rate to buy your dream property in Spain. Keep them in mind to lift your currency total!
By Peter Lavelle at foreign exchange broker Pure FX
Peter Lavelle
Pure FX
+44 (0) 1494 671800