Finance......Mortgages......&...... Exchange Rates
It is important to have a clear understanding of the financial commitment you are willing to make in the purchase of your Spanish property and set yourself a clear budget - with perhaps an element of leeway in case that "Perfect" property appears just beyond your reach. Better to know at the start how much your budget can "Stretch" rather than lose the opportunity of that Dream Villa or Cortijo. On the other hand you also need to know what is definately beyond your budget.
Also bear in mind the costs of the 'overheads' in buying a Spanish property. In general this is likely to average around 12-13% of the price of the property and consists mainly of IVA tax (new Properties) or Transfer tax (resale properties) IVA is now 10% on new builds but Transfer Tax remains at 8% of the declared value of the property. In addition you will have your solicitor, notary and land registry fees plus stamp duty all of which contributes to the extra costs.
If required, mortgages can be arranged on your UK property, but if you do not wish to risk the security of your home in the UK then the answer is to raise money on your new Spanish home. Our local Spanish banks will lend up to 70% of the value of the property and mortgage rates are normally lower than in the UK. Mortgages in Spain are normally the straight repayment type. There are also UK banks who will lend against a Spanish property but these tend to be more expensive. You should allowan extra 1% to the overheads if requiring a reasonable sized mortgage.
Obviously getting a mortgage to cover rebuilding work is not quite so straightforward as when buying a finished home but our staff in Spain will be able to advise and assist you with this.
Exchange rates are another key area that should be considered. Getting the best rate when buying a property can save you literally "thousands" of pounds on the total cost of your new home. Exchange rate volatility will play a key role in getting you the best deal.
It is not uncommon for currencies to fluctuate by as much as 10% over relatively short periods of time.....so for example, a couple wishing to purchase a property for 200,000 Euros would have paid the Sterling equivalent of £134,526.13 in May 2005. Two months later they would have paid £136,873.80 for the same property. By securing an exchange rate in advance, they could have made a saving of £2,000.
We have therefore also teamed up with Moneycorp, the commercial foreign exchange division of TTT Moneycorp Limited. Their specialist private client team provides one of the best services in the industry and we have no hestitation in recommending them.....we use them ourselves so can speak from experience!
Benefits offered by Moneycorp are as follows............
- No commission charges
- Fast, efficient worldwide transfers
- A dedicated dealer to guide you throughout your currency transaction
- Online Trading facility available
- 24 hour market monitoring enabling you to benefit from currency fluctuations outside of normal banking hours
- Regular Payment Plan - smaller regular transfers
- Extended office opening hours 7:30am - 9:00pm Monday to Friday and 9:00am – 1:00pm on Saturday.
- TTT Moneycorp Privilege card to purchase currency and travellers cheques commission free and at preferable rates of exchange from any of their retail branches in central London, or at Gatwick and Stansted airports
- Peace of mind dealing with a company that has been trading foreign currencies since 1979, is the only foreign exchange company in the UK to have been certified to ISO 9000 Quality Assurance and last year traded in excess of £11 billion in currencies
So you can see, searching out the best rate (sometimes months in advance) is essential. Click here and let Moneycorp do the hard work for you then return back to this window to continue browsing our site.
Always remember to mention 'Casas Almeria' when dealing with Moneycorp to ensure you get the best rates.
Alternatively you can now open a trading facility with Moneycorp ONLINE! Click here to go to the Application Form and you can be trading shortly after.
Once you have sorted out your budget, it's time to "go view" the properties and whilst some people decide to go it alone, most people choose to go out with a specific agent to save themselves the hassle of finding the properties, instructing solicitors, making sure the property is taken off the market and that it is in a good area and resaleable if need be. All this of course in another language and whilst the procedures are not all that different from the UK they are different and mistakes can be costly.
So.....how do you pick the right agent?
Click to go to the next page on How to Pick the Right Agent
Want the Best Exchange Rate?
Current Exchange Rate
our recommended currency service
Save money when buying your new home in Spain
(or in fact any major purchase in a foreign currency)
click on logo to visit Moneycorp website
or Click HERE to open a trading facility online
Cortijo/Country House in Huércal-Overa, Almería
Apartment in Huercal-Overa, Almería