This summer is proving to be one of the hottest and longest we have seen for some time here on Mallorca. And with record numbers of tourists descending on the island, many homeowners have been enjoying the peace and comfort of their own homes here as they entertain family and friends from around the world.
Of course, such times are when we use our houses and apartments the most, and plans are hatched to make improvements here, change something there, expand this, re-model that. Many people emerge from the summer with lists and ideas, planning to make such changes during the cooler months in time for the following summer. They get busy consulting builders and gardeners and interior designers, juggling ideas and costs until finally, quotations are accepted and work starts.
All of this has to be paid for, of course, and with all prices being quoted in Euros, homeowners from elsewhere in the world have to base their decisions on those pesky things called exchange rates to be able to calculate costs in their own currency. And that is where a potential problem lies. Exchange rates move, meaning that a decision based on the rate 3 months ago may very well end up costing a lot more by the time the bills are to be paid. But fear not, there are things that can be done to reduce or even remove this risk altogether.
Having a relationship with a specialist currency broker can have a real impact on how much people end up paying for goods and services abroad. Some people simply don’t consider it until it is too late, others like to watch the markets themselves and make decisions when they believe it is right. But there are other things that can be done which take away the risk and give budget certainty.
The most fundamental of these is the fact that exchange rates can be fixed, for any amount and for up to two years. Of course, making this decision requires a little bit of expertise, and this is where the broker can help, but the benefits are very clear, especially when the rate is expected to fall over the timescales of the work. There are other options too, depending on the precise circumstances. But considering that exchange rates between the British Pound, US Dollar and the Euro have fluctuated by some 10% in recent months, it doesn’t take much to work out that having a plan is better than having no plan at all!
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This article was written on the 14th of August, 2017.