24.01.2017

Are you thinking about buying a Castellón property in 2017? If so, whether you’ve got your eye on a 5-bedroom villa with a swimming pool close to the beach for 850,000€, or a 4-bedroom villa near to a golf course in Grao de Castellón for 1,150,000€, you’ll want the best exchange rate.

After all, the higher the exchange rate, the more euros you’ll get in your Spanish bank account, to buy a Castellón property!

With this in mind, how can you ensure you get the best pound to euro rate this year, especially in light of Brexit? Well, here are 3 top tips, to get you the most euros to buy in Castellón.

1. Transfer your money with a currency dealer instead of your bank.

This is because your bank expects you to come to them as your first of port of call, so they offer your a worse exchange rate.

Instead, a currency broker will get you an exchange rate up to 4% better. So for example, let’s say that you intend to transfer £1,000,000 to Spain, to buy a Castellón property. With a foreign exchange dealer, you can obtain up to 40,000€ extra!

Clearly, that will go some way to paying your real estate costs and legal fees when you buy a villa in Castellón, so it’s worthwhile using a broker.

2. Fix your exchange rate in advance with a forward contract.

Are you worried that the exchange rate could weaken this year, because of Brexit? If so, to protect yourself against sterling’s decline against the euro when you buy a Castellón villa, set up a forward contract.

This locks in the current exchange rate for up to 2 years, so that if you buy a Castellón property in 6 months when the pound may be weaker, you’ll still get today’s stronger rate.

Hence, you won’t have to worry about sterling’s volatility while Theresa May negotiates the UK’s EU exit. Instead, you’re totally protected.

3. Don’t wait to see how high the exchange rate goes.

If you try to transfer your money to Spain to buy a Castellón property when the exchange rate is at its “peak”, you may lose out.

This is because the exchange rate is extremely volatile, meaning it’s very difficult to say how long sterling will rise versus the euro, even if you watch the rate constantly.

Instead, transfer your money to Spain as soon as a good enough rate becomes available for you to buy your Castellón property. This will ensure you’ll receive a sufficient euro total in your Spanish bank account, and won’t lose out.

With these 3 tips in mind, you’ll get the best exchange rate, to buy your dream Castellón property in 2017!

by Peter Lavelle at foreign exchange broker Pure FX http://www.purefx.co.uk