Tips for buying Spanish property in the midst of Brexit
Thinking of buying in Spain but worried about Brexit
Unsurprisingly, the long drawn out Brexit process is starting to take its toll on the British public. While we’ve not seen a direct impact on property sales in Spain, we can be certain that there are people who are sitting back waiting to find out what’s going to happen and feeling like they’re living in limbo, worried that their dream of moving to Spain may never happen.
So, if you’re coming across from the UK and feel a bit reticent to invest at the moment, here are a few tips to help reassure you that there may be no need to worry.
The strength of the property market despite Brexit
One of the reasons we publish data regularly is to give you the opportunity to see how the housing market is faring, as well as offer qualified advice to buyers who are asking for our opinion.
The most recent Kyero house price report published in May shows that recent growth in the market is very much continuing. In fact annual growth is sitting at 8.5%, with the areas of Cadiz, Granada, Mallorca, Alicante and Barcelona showing the highest rise in prices. This report is extremely positive, showing that things are far from stagnant. Sharing this kind of up-to-date information with prospective buyers gives you some confidence in the current market and allows you to make more informed decisions about the best time to invest.
We suggest that you protect your budget with a currency exchange company to avoid the dips in the exchange rates caused by Brexit
For Brits considering a property purchase in Spain, one of the biggest concerns currently will be the effect of exchange rate dips on the value of their money. The uncertainty of the situation with Brexit means that at any moment a decision could be made by the UK government that is unpopular with the markets, causing the pound to plummet in value. Even if this is only a short-term dip it could have a very real impact on a home buyer’s budget at that time, meaning you can suddenly afford much less. Worst case, if you are in the middle of a property deal as the pound falls, you may even no longer be able to afford the property you’ve agreed to buy.
In order to guard against such an eventuality, talk to us about taking out a forward contract. This is a way of locking in today’s favourable exchange rates for up to a year, meaning that the risks of being stung by a temporary currency dip are far lower.
We Suggest you talk to currency specialists for more information. And always remember that there are risks involved in locking in currency at a particular rate, and you should always seek independent financial advice. We can put you in contact with Currencies Direct who give you no obligation consultations.
If you would like a call from us to explain this in more detail please leave your details in the form below: