Quick tips to get a top exchange rate, for your Costa Blanca property.
Are you thinking of buying a property on the Costa Blanca this year? If so, whether you’ve got your heart set on a 2-bedroom modern apartment near the beach in Campoamor, or a 3-bedroom villa with sea views in Mil Palmeras, you’ll want to transfer money to Spain at a fantastic exchange rate.
This is because, when the pound is flying high versus the Eurozone’s common currency, you’ll receive far more euros in your Spanish bank account, to buy the Costa Blanca property your heart desires! With this in mind, how can you maximise your exchange rate? Well, let’s see.
Sterling may strengthen, as Bank of England set to lift interest rates
First of all, the good news if you intend to buy a Costa Blanca property is that the exchange rate may strengthen, above its current 1.1175. This means that, when you transfer money to Spain to buy a property, you’ll receive a much higher euro total.
Sterling could rise, because the Bank of England looks set to lift interest rates above their current all-time low of 0.25%. For instance, just recently BoE policymaker Gertjan Vlieghe said that UK interest rates may rise “as soon as the coming months”. This may boost the pound, cutting the cost of buying Costa Blanca property for you!
Euro could weaken, as Macron struggles to pass reforms
What’s more, buying a Costa Blanca property could also become more affordable for you, if the euro weakens, as France’s President Emmanuel Macron is struggling to pass reforms. For instance, just this week there were huge manifestations in the streets of Paris, protesting Mr. Macron’s proposals to liberalise labour laws, to make it easier for businesses to hire and dismiss staff.
This may drag down the euro, because these protests cut the odds that Mr. Macron will pass his reforms, thus weighing on France’s economy. In turn, this would reduce the price of Costa Blanca property!
3 quick tips to get a great exchange rate, to buy Costa Blanca property
With all this in mind, how can you maximise your euro total, when you transfer money to Spain, to buy a beautiful Costa Blanca property? Well, here are 3 top tips:
1. Plan your money transfer in advance.
To get a fantastic euro total, it’s best to plan your money transfer as far in advance as you can. This is because, the sooner you look at transferring your money to Spain, the bigger the window you give yourself for a strong exchange rate to become available! In turn, this lets you exchange currencies, when the pound is highest versus the euro.
2. Transfer your money when a favourable exchange rate arises.
When we exchange currencies, it’s tempting to try and wait until the exchange rate “peaks”, to get the most euros. The thing is though, the market is extremely volatile, and a rising exchange rate can fall again in the blink of an eye. Given this, instead of timing the market, transfer money when a favourable rate arises!
3. Fix your exchange rate in advance with a forward contract.
To guarantee that you’ll get the euro total you need to buy your ideal Costa Blanca property, you can use a forward contract. This fixes your exchange rate, so you know in advance how many euros you’ll receive, whether the forex market moves in the meantime. This gives you peace of mind to buy your Costa Blanca home!
With these 3 tips in mind, you’ll get a fantastic exchange rate, to buy the Costa Blanca property you’ve had your eye on. Keep these tips in mind!
By Peter Lavelle at foreign exchange broker Pure FX https://www.purefx.co.uk
Peter Lavelle
Pure FX
https://www.purefx.co.uk
+44 (0) 1494 671800
peter.lavelle@purefx.co.uk
