16/08/2018 Buying a holiday home abroad or planning to relocate to the sun represents a major investment and perhaps the realization of a long held dream. It may come after many years of planning and saving, or maybe a life-changing decision to retire to warmer climes.
Of course, choosing the right property and location is of paramount importance. But for many the choice of professionals to help with this often-daunting prospect is a secondary consideration.
The obvious relationships need to be established with the real estate agents, and then a reputable lawyer, but for those buyers coming from a non-Euro environment, surprisingly few think of talking to a recognized currency specialist early enough in the process. But why is it so important to do just that at the outset?
Of course, when planning a move, buyers will look at the exchange rates when establishing their budget. But of course, rates move, and as recent months have shown us such moves can be fairly dramatic, albeit maybe not at first glance. Economic, political and social factors can have a big impact on the amount of hard-earned money required to complete the purchase, often many weeks or months after a deal has been struck.
The impact of timing
Take this last year, for example. The Pound would have bought around 1.2 Euros back in April, but by September it would have managed a meager 1.08 Euros. That’s a 12% difference!
So what can buyers do to avoid this potential risk? Well, there are a number of things, such as fixing rates when the market is in the right place, but certainly choosing a respected currency broker at the beginning of the process to help develop a currency strategy for the purchase can reduce or remove the risks of such movements in exchange rates.
Reduce your risk
Because exchange rates are driven by market forces, and heavily influenced by events worldwide – and there have been a few of those in 2017 – the market is always subject to volatility. It is virtually impossible to forecast where exchange rates for any currency pair are headed. And this makes it even more important to plan ahead and reduce risks, enabling you to enjoy the excitement of buying your home in the sun with no nasty surprises along the way!
So why not get your plans for 2019 off to a flying and more predictable start by talking to a currency exchange broker?
Related articles to currency exchange.
Find your apartment, villa, finca home on Mallorca
More about Real Estate Agents on Mallorca
Real Estate Agents on Mallorca
The top and most experienced real estate agents on Mallorca help you find your ideal home in any location within the island. Find out more here! […] Real Estate Agents on Mallorca
More about Relocation to Mallorca
Relocation to Mallorca
It’s no use finding the perfect location if you are unprepared for the pitfalls of relocation. Mandy Van Zuydam finds out what it takes to make a successful new start in Mallorca. […] Relocation to Mallorca
More about Moving to Mallorca Guide
Moving to Mallorca Guide
Once you decide to move to Mallorca, here is your guide to take you through the process of moving and to make your relocation as easy and as possible. […] Moving to Mallorca Guide
More about Living on Mallorca
Living on Mallorca
Living in Mallorca means a relaxed cosmopolitan lifestyle but it helps to know as much as possible about making a new life here. Find out more here!
We hope you found this article about Buying a home on Mallorca – Currency Considerations useful and that moving to and living on Mallorca gets even easier as a result of our recommendations.
We are always pleased to hear from you, so do send us your feedback by email to: content@abc-mallorca.com.
Enjoy Mallorca!!
