In this article I’ll share some tips with you to make the most of the strong pound to euro exchange rate, for when you buy a property in Marbella.
Are you thinking of buying a property in Marbella? Then great news! It’s now significantly cheaper to do so, because the pound to euro exchange rate this week hit 1.35, +15 cents higher than 21 months ago, at the start of 2014. What this means is that, when you transfer money to your Spanish bank account, you’ll receive a far higher euro total than the recent past.
For instance, were you to transfer £250,000 to buy a Marbella property, you’d now get +€37,500 more than 21 months ago. Hence, buying your dream home in Marbella is now far more affordable! In fact, with this rise in the exchange rate, you could buy a much more luxurious Marbella property than you’d hoped for until now, get an extension or a swimming pool, in brief really live the high life.
So, with the pound to euro exchange rate so favourable, how can you ensure you make the most of it for your Marbella property purchase? Here are 8 quick tips.
1. Exchange currencies with a specialist currency broker, not your high street bank. This is because you’ll get an exchange rate up to 4% better, which will add greatly to your euro total.
2. Don’t leave exchange currencies to the last minute. This is because the rate is volatile, and if you leave exchange currencies to the last minute, you may be stuck with a unfavourable rate.
3. Seek guidance from your currency dealer. They’ll be able to tell you what’s affecting the exchange rate, so you get the best deal, and walk you through the transfer process.
4. Don’t get greedy. If you see the exchange rate is rising, transfer your money there and then. This is because, if you wait too long, the exchange rate is just as likely to fall again rapidly.
5. Check the exchange rate with Google. To find out the current exchange rate, just type ‘pound to euro’ into Google. This will keep you up to date!
6. Always ask your currency dealer for confirmation that your money has been sent. This lets you know to expect the money in your Spanish bank account.
7. Fix the exchange rate with a forward contract. To lock in the exchange rate at its current level, you can use what’s called a “forward contract.” This ensures you get today’s top rate!
8. Make sure you feel comfortable with your currency dealer. If you don’t feel they know what they’re talking about, or if they’re pushy, try speaking to someone else elsewhere!
With these tips in mind, you should be able to make the most of today's great exchange rate, and get the highest euro total when you buy property in Marbella!
By Peter Lavelle
Pure FX
peter.lavelle@purefx.co.uk