Playing the Exchange Game in Spanish Property

As foreign buyers or sellers of Spanish property you may need to pay careful attention to exchange rates. In fact you really should if you want to make your money work for you. Just a few cents in the rates can make substantial differences to your selling/buying power.

Money Exchange in the Hondon Valley

Sadly, many people in our experience, particularly the Brits, in the Hondon Valley areas do not factor currency exchange into their buy/sell goals.

In particular British sellers looking to return to their homeland have not worked out what they may sell for in relation to what they bough for (Euro to Sterling £). Often, they simply want to make a profit based on their original purchase price + added feature costs (like a pool, patio, etc). When we point out that as they bought in the boom years at about 146+ € to the pound they are currently in a great relative position, exchange wise if they take money back to the UK. And it CAN BE THOUSANDS DIFFERENCE!

And for the British buyers in particular you can save thousands on the purchase price by being proactive in checking the exchange rates, buying Euros when the rate is good. Many banks now offer currency accounts.

Maybe not so easy for British sellers who sell when they can so are subject to the rate at the time… But there are still things you can do whilst your property is on the market.

So get wise with your money, make it work for you… Of course it always depends on your personal circumstances, your property goals and target budget. Hondon Villas can advise you but we do partner MoneyCorp who know the way to play this game a lot better than we do and have an enviable pedigree in exchange. They literally could save you literally 1000’s.

TYPICAL EXAMPLE: In early Nov 2019 the rate was 116€ to the £. As I write (mid Dec, pre-Brexit) it’s gained to 119€ to the pound.
So for an average 200,000 property in the Hondon Valley this 3 cent margin could be 6,000 €uros difference! Amazing!
So you’ll agree this is a significant amount and worth punting for if you can.

Of course you don’t have to wait until you buy or sell to play the currency or take advantage of the rates in your favour but MOST people don’t and as in the example above you can see that inertia could cost you dearly. Get wise, get a currency account ASAP!

And the daft thing is it isn’t hard to do with the help of a currency exchange account, like MoneyCorp.

Hondon Valley Property Agent

As we enter BREXIT/ELECTIONS in the UK the future is uncertain and this usually affects the exchange rates. So get proactive NOW whether you are buying or selling. It may be wise to open a MoneyCorp account now if you don’t already have one.

Ask us for more details… so we can get the Rep to chat it over with you. The advice is FREE, so what have you got to lose?

Be Realistic with your Selling Price on Hondon Homes

As much as it hurts, in the current market, property sellers still have to be realistic about the price they want for their property in Spain. Most people in the Hondon area have too great an expectation of their property value.

 

In general houses for sale in the Hondon area have sold for well below their original sale price if they were bought in the boom/pre-2008 (the crash). Very few sellers achieve their initial asking price. And it’s a fact that whilst Hondon Property Sales are definitely on the up in 2017 / 2018, figures such as 30% or 40% below pre-crash values are now common.

It’s a buyer’s market right now.

Not great news if you are selling!  And supply is larger than demand in many areas of the Spanish Costas, pushing prices down even further. Thankfully, most expert reports think this has trend has now bottomed and a slow recovery is now happening. We’d echo that in the Hondon Valley area. as 2017 was a record year and we have already smashed our own target for 2018 (Aug now).

The property portal Kyero keeps tabs on many of the official property indicators and housing data on their blog. They have just reported the news that house prices on the whole are fairly stable now. Read their page as often they do contradict but it might help you when valuing your own house. And do comparisons with similar property in your area. Remember, though that these reports usually talk in averages. > SEE HERE> KYERO “Spanish House Prices Have Fallen by 41.4% Since 2007” ARTICLE

The hard truth though is that the property market usually dictates the average exchange so what we want for a house is not always what we get.

So, please, do your property research or call / visit us for a free no-obligation valuation and an experienced chat.

We are Hondon Villas in Frailes & Nieves, the most experienced agents in the area. AIPP accredited and extremely helpful.
: TEL 965 075 357 property @ hondonvillas.net

Save 1000’s with the MoneyCorp Foreign Exchange

bnr-moneycorp-currency-calculator If you are using Sterling to buy or pay for your Spanish property / mortgage or just need to transfer some larger sums of money from the UK to Spain then you SHOULD be using a Currency Exchange Service.

IT CAN LITERALLY SAVE YOU LOTS OF MONEY ON FEES AND POORER BANK RATES.

Incredibly even a small percentage fluctuation in the rates can make a massive difference in what you get back.

IN FACT if you TIME IT RIGHT you can literally save 1000’s on an exchange deal when paying off your house purchase.

So it is ALWAYS WORTH using a reliable and trusted foreign exchange service, like MoneyCorp as their rates and service are much better than a typical bank or Bureau de Change service.

At Hondon Villas we use and recommend MoneyCorp for your foreign payments. Alan can advise you on the BEST ROUTE fro your needs, he is so helpful. Here is a quick link to » CHECK TODAY’S RATES

FREE! Guide to Buying Spanish Property

Free Download Guides for Spanish Property

As you know Hondon Villas are a proud member of the Association of International Property Professionals (AIPP). This non-governmental, not-for-profit organisation based in London help to ensure we agents improve and adhere to a high standards of service and practices. The AIPP also provide free and impartial information to UK citizens about buying a foreign property.

» Free Guide to Buying Spanish Property

» Free How to Buy Overseas Property Safely (2018 Ed.)

AIPP is also a Trustee of the IESC – International Ethics & Standards Coalition – www.ies-coalition.org

Hondon Valley Property AgentThey are also proactive in making sure YOU THE BUYER and SELLER are informed and well versed in what to expect when buying a property abroad. You can contact them via their website [ https://www.aipp.org.uk/ ] for advice and help. In the meantime download and read the above FREE PROPERTY BUYER GUIDES from the AIPP.

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So many unloved homes in Spain!

WOW! It is estimated (2015 survey) that well over 3 million Spanish homes / houses are unoccupied. There are many reasons for this: held for future investment, unfinished urbs, unpopular areas, occasional holiday homes, derelict or failed projects, illegal builds, land-grab, etc. Many of these are still unoccupied since the financial crash in 2008. Not all are for sale or rent of course but there is a massive glut of homes across Spain, especially on the Costas.

It does now mean lower property prices and indeed it is a buyer’s market right now. Many who want to sell their Spanish property are finding that offers are well below their desired asking price (-25% – 40%). And here at Hondon Villas we know first hand that very few sellers in the Hondon areas get a price they want. And further, with the passing of time and on-line knowledge, all modern buyer’s are much more savvy in making “cheeky” offers and negotiating. Unlike the pre-crash market when we had to fight to get our dream home in Spain!

Be realistic about Hondon house prices

So, as facts are, it is best to be realistic and to expect a lower offer, especially if you want to sell quickly. We have seen clients refusing to budge on price or have a house on the market too high for too long (years) to find that the inevitable has to be done: i.e. to lower the price and magically more people are interested.

You may think you have the most wonderful home, tendered with loving care and hard-earned money but it is the buyer’s market.  Of course we know people don’t want to give their homes away but the question is: Is it worth putting your life on hold?

Factor in relative prices or differing exchange rates

It might help your reasoning if you can factor in that if you want to re-buy in Spain then the national % reductions will also be relative to your next house purchase. So if your home to sell is about 25% lower than when you bought then a new home in Spain may be similar or more.

And, if you are returning to a non-Euro country like the UK perhaps the low Euro is now in your favour as opposed to when you bought years ago. E.G. The low Euro to the pound  can mean significant difference when returning to the UK.

2006 : £200,000 sterling @ 1.46 would buy €292,000
2017 :  €292,000 Euro @ 1.19 would now buy £245,000

As a basic example (not withstanding fees) and of course depends on the exact rates you bought at / sold at. And factor in the price reduction and just maybe there is still some profit or at least a reasonable break-even.

Need help selling your Hondon Villa or Hondon Valley Home?

If you wish to discuss your property situation or get a free valuation then please call into our Frailes office (in the Plaza)
or call our team Monday to Friday : (0034) 965 075 357.
» www.hondonvillas.net

Another good sign !

SoldHouseSignConti has seen the volume of overseas mortgage enquiries increase by 41 per cent over the first three months of this year, and said: “Bargain prices and the opportunity to negotiate these down even further with some very motivated sellers mean that it’s most certainly a buyer’s market.

This, together with historically low interest rates and the growing strength of the pound, is making it much more affordable to buy in Spain.

> See this article for details > http://www.euroweeklynews.com/…/128275-spain-back-as-number…

FINALLY … Spain wise up to a more flexible Mortgage Product

KYERO SAYS: Historically low rates are enabling extremely cheap mortgages to be offered by lenders. Flexible term interest rates are currently being advertised at less than 1.5 percent above the Euribor, and the latest Euribor rate has just been announced, with March’s figure being only 0.2 percent.

With a more pro-active attitude from banks and the surplus of unsold property gradually reducing, the number of new mortgages issued this year is nearly 20 percent higher than last year and has maintained 8 months of consecutive growth.

The vast majority of Spanish mortgages (90 percent) are agreed on flexible rates, based on the Euribor, and although these rates are unlikely to rise too much in the foreseeable future, the Euribor went as high as 5.39 percent in mid-2008.

It’s therefore worth mentioning again that buyers do have the possibility of fixed term rates, with some lenders reportedly agreeing 30 year loans at less than 4 percent interest, providing very attractive long term payment stability.

Analysts are viewing the mortgage figures extremely favourably, with one of the ‘big three’ credit agencies (Fitch) marking an end to house price falls in Spain and a return to slow but gradual growth.

» More here:  http://us8.campaign-archive1.com/?u=4ced9c1e7ebb84944d3c3e207&id=6d954c6838&e=84bf63dd72

2015 UK Budget… Good for Investors?

What does the latest UK budget and new UK Pension / Annuity Rules mean for buyers / sellers of foreign property? Here’s an interesting post-budget reaction from Opps about cashing in pensions to invest in property. Good or Bad?


In a boost to the UK housing market, Chancellor George Osborne announced that Help to Buy ISAs will be introduced to help first-time buyers save for a deposit. For every £200 they save, the government will top it up with £50.

But were no other major announcements in the Budget directly affecting the housing sector, apart from confirmation of plans for 20 new housing zones.

Turning to the economy, Mr Osborne says the squeeze on public spending will end earlier than planned due to stronger growth and low inflation, as the Office for Budget revised its growth forecast for 2015 up 0.1% to 2.5% and for 2016 from 2.2% to 2.3%.

Focusing on pensions, Mr Osborne confirmed the Government will give five million pensioners increased access to their savings.

Louise Reynolds, Director of award-winning, Overseas Estate Agency, Property Venture, says pensions should seek professional advice when considering investing in property.

“In a budget taking the country from ‘austerity to prosperity’ pension savers need to ensure they don’t put themselves into ‘austerity’ with reforms announced to extend pension access to Annuity-holders.

It is a sad indictment of the industry, but we are likely to see a rise of the get-rich-quick brigade entering the property market, to wax lyrical about the advantages of investing in property, as an alternative way to invest liberated pension potsread more on Opps

Now is the time to buy Spanish Property

Kyero.com Director, Martin Dell, said “Foreign interest in Spain has been slowly creeping up for a few years, but in the last 12 months we have seen a massive resurgence of purchasers from overseas”.

Spanish Property Look PromisingLast year, foreign buyers were already making up the largest proportion of all home purchases in Spain in history. With property price indices starting to rise and building permits increasing for the first time since 2007, the results are already indicating another record breaking year.

“Not only have prices in Spain bottomed out so far as residential property has concerned, but for British buyers in particular now is the time to buy due to the fantastic exchange rate,” concluded Martin.

Spanish Real Estate Recovery predicted for 2015

BBVA-logoAccording to BBVA Research, Spain’s economic growth prospects and more favourable financing conditions will lead to a new increase in housing sales in 2015.

They have estimated that the return to economic growth, the recovery of the labour market – with the creation of some 425,000 jobs – and improved financing conditions, have encouraged the return of consumer confidence and, as a result, the growth in home sales.

In March, the FT website also reported that “Spanish housing prices rise at fastest rate in 6 years” since the start of the country’s financial crisis, fuelled by a broader economic recovery and increased availability of credit.

They go on to say “Spain has started to recover, emerging as one of the fastest growing economies in Europe. Mariano Rajoy, Spain’s prime minister, last month raised the official government forecast for economic growth this year from 2 per cent to 2.4 per cent.

Newly built homes in particular seem to experiencing an upsurge in prices, with figures in the second quarter of 2014 increasing by 1.9 percent. Although excellent news, this recovery will have to continue for some time before house prices regain a more than 30 per cent loss in value during the recent economic crisis. » New Build and Spanish Resale Villas in Hondon

Looking to the future it hoped that a sustained increase in housing prices will boost Spain´s struggling construction industry.