The 23rd of June is the date that most Europeans are waiting for as it will set the future of Britain and could be critical to many British especially those planning to buy a property in Spain. The Brexit will definitely have an impact on various political and economical aspects, but those wishing to purchase their dream home abroad will face the risk of not getting enough for their pound and maybe having to put in more than they can afford. Even at this stage, we can see that the pound has already fallen against the euro, driving many to sit on the fence till after June. Besides the currency matter, a vote to leave the EU will add to the uncertainty on many levels especially in issues like the taxes involved, residency rights, inheritance etc. So, is it all doom and gloom?
Surely, the most natural and obvious reaction would be to wait and see what the outcome will be and then decide whether buying a property abroad is a sound idea or not. This might mean missing out on many deals and in the worst cases, giving up on the dream of becoming a property owner in Spain.
As we all ignore the real outcome of the Brexit and how it will affect our lives, it would be rather foolish to hope that things will turn ok but even more foolish to think that everything will deteriorate. Nevertheless, it is possible to manage the risk and protect your money when purchasing a property abroad. If you want to go ahead with your plans, you could have a safety net to apply when wanting to buy or sell pounds, and this safety net is called Hedging. Hedging in simple terms is locking the current exchange rate to use in future currency operations. This will give you the peace of mind of knowing exactly how much money you will have to pay to buy a property whether the rate rises or falls without all the risk and speculation. This strategy is widely used especially in property purchase transactions and can give you the advantage of securing the current rate as well as saving you a lot of money on bank charges and hidden fees.
It is best to talk to an experienced and well-established currency provider such Currencies Direct, who will explain the whole process and what can be achieved realistically, as well as how can you get more for your money.
Buying a property in Spain is such an exciting and fun process especially if you are fully aware of what to expect and are completely informed every step of the way. Despite the current economic volatility and political uncertainties and the Brexit looming on the horizon, we are still quite lucky, in this day and age, to be able to find solutions to protect our finances and assets without having to give up on our lifestyle.
If you would like an expert opinion on finding the right property on the Costa del Sol, please get in touch with us, or if you wish to find out more about Currencies Direct, visit their website or contact their representative quoting: A012736 and they will be more than happy to help.