Real Estate & Currency Exchange News in Spain from Propertyshowrooms.com

Exchange rates 'favourable for Brits buying property in Spain'

Wed, 8 Feb 2012 00:00:00 GMT

UK buyers who want to purchase a property in Spain may decide now is the time to do so after one currency exchange organisation pointed out the favourable rate between sterling and the euro.

According to managing director of Currency Index Robin Haynes, those who are keen to invest in real estate in the south European nation could benefit from the strength of the British pound.

"Overseas property buyers should rest assured that the single currency devaluation will mean that they will currently be able to get over eight per cent more for their money than if they were buying euros in July last year," he stated.

The firm noted the highest proportion of its currency transactions were sent to Spain in 2011, indicating the nation has not lost its appeal among tourists and expats.

Bob Atkinson, travel expert at Travelsupermarket, recently highlighted Spain's popularity as a holiday destination, which may bode well for anyone investing in a rental property in the country.

He noted it is "cheap" and "accessible" for Brits and, in the current climate, Spain offers good value for money, especially for families.

Investors 'still keen to buy property in Spain'

Mon, 30 Jan 2012 00:00:00 GMT

Despite the current financial problems in the eurozone, Brits are still interested in buying property in Spain.

This is the assertion of the Currency Index, a firm specialising in foreign exchange services, which recorded a 32 per cent increase in the volume of euros transferred to Spain by Brits in December 2011, compared with the same month a year earlier.

Robin Haynes, managing director of the firm, commented: "Buyers who are worried about any currency devaluing could even consider holding debt (such as a mortgage) as well as assets (such as property) to balance out the perceived risk."

Next week (January 30th) will see leaders from the European Union meet at a summit to discuss further measures to bring greater stability to the euro.

Currency Index stressed, though, that with the exchange rate for the single currency at an almost 16-month high against sterling, now is "one of the cheapest times to buy a place abroad in recent memory".

Earlier this month, A Place in the Sun magazine revealed Spain remains the top choice for Brits looking for real estate overseas. The publication added seven out of the ten most popular destinations are in the eurozone.

Buyers of Spanish property 'need to be aware of exchange rates'

Wed, 27 Jul 2011 00:00:00 GMT

Investors who are purchasing a property in Spain - or elsewhere in Europe - could stand to save a substantial amount of money by doing some research into exchange rates.

This is the opinion of Tom Highham, director of currencies.co.uk, who told the Telegraph that many people are losing out by failing to look for the best deals.

"Despite the huge savings that can be made on large currency transactions by using a company such as ours, we're astonished that so many people don't shop around and just use their bank," he stated.

According to the newspaper, just ten per cent of foreign currency sales occur via a specialist provider, even though they usually offer more competitive rates than high street banks.

Finding a favourable exchange rate could make a big difference to investors looking for Spanish real estate.

Research published by the Overseas Guide Company in A Place in the Sun earlier this month indicated that more Brits are turning their attention to the country's property market, with the firm seeing requests for its Spain mini guide rise by 24 per cent between January and May, compared to the same period in 2010.

Spanish property investors could 'lock in' to currency rate

Tue, 17 May 2011 00:00:00 GMT

People considering purchasing property in Spain are among those who could benefit from 'locking in' to a foreign exchange rate.

According to Karl Pierre Sieha, marketing assistant at Currencies Direct, people purchasing overseas property can "lock in a rate now and then choose to do a transaction later on within the next two years or so".

This will allow them to access a foreign exchange rate that might not be available on the open market in a couple of years.

Mr Sieha added: "Because the market is changing and fluctuating all the time, it is all about getting the best rate.

"The ball is in the client's court as to when they want to make the transaction."

The advice follows news from the Spanish Ministry of Industry, Tourism and Trade, which revealed that there was a 2.9 per cent increase in the number of international tourists visiting the country in the first quarter of 2011.

Indeed, nine million visited Spain between January and March, suggesting a strong interest in the region.

Second home owners look to sell, survey finds

Wed, 12 Jan 2011 00:00:00 GMT

A large number of Brits who own a second home abroad are considering offloading their property during 2011, the results of a new survey suggest.

The news could be of interest to those looking to buy real estate in Spain, with a number of these homes likely to come onto the market at discounted prices.

Specialist currency broker currencies.co.uk has found that 56 per cent of Brits with eurozone property are considering selling up.

The brokerage claims that this is a direct result of the current volatility between sterling and the euro, which it says is making it difficult for second home owners to work out how much rental income they will receive over the course of the year.

In addition to this, those with real estate in Spain or Greece have also seen the value of their homes fall as a result of economic troubles in the countries.

Stephen Hughes, chief analyst at currencies.co.uk, commented: "For many the reality of owning a second home abroad has become intolerable and what started as a lifestyle aspiration and canny investment opportunity has become a financial millstone."

The group added that this trend had been growing over the past five years, with sales now accounting for a significantly higher proportion of its property-related transactions.

Eurozone destinations to rise in popularity

Tue, 11 Jan 2011 00:00:00 GMT

Popular eurozone destinations such as Spain will see a resurgence in popularity this year as holidaymakers take advantage of the strength of the pound.

According to Tom Hall, travel editor at Lonely Planet, traditional countries will "twist around" the deficit in visitor numbers that they have seen in recent years.

The comments could encourage a number of individuals to consider buying property in Spain, with an increase in holidaymakers likely to boost the country's buy-to-let market.

"When we start thinking about August it remains reasonably expensive to go anywhere. So if you are thinking about going somewhere in the Mediterranean you can certainly look at Spain and Greece as places that offer more good deals at this time of year," Mr Hall said.

Meanwhile, according to the Travel Trends 2011 report from ABTA, enthusiasm for European destinations is set to be "reignited" next year as the pound is likely to rally against the euro, making them a more attractive prospect.

Eurozone offers ‘great value for money’

Thu, 14 Oct 2010 00:00:00 GMT

The eurozone currently offers excellent value for money for Brits looking to get away for some winter sunshine, it has been claimed.

According to Travelex, the pound remains up six per cent on the euro compared to the same period last year, this is despite sterling recently sinking to a five-month low.

"This could mean that popular eurozone destinations, like Spain and Greece, could provide holidaymakers wanting some half-term winter sun great value [for money]," said David Swann, currency strategist at the money business.

His comments come just after it was announced by the International Currency Exchange that although the pound has strengthened in the eurozone, Brits are heading farther afield to get the best value for their money.

However, the news could also be of interest to potential property investors, with the current exchange rate meaning the there is an opportunity to pick up some bargain property in Spain.

In particular, those wanting to take advantage of the trend could start searching for one of the distressed properties available on the market.

Overseas property 'can be a very profitable purchase'

Tue, 7 Sep 2010 00:00:00 GMT

Investing money in overseas property can be a good way for people to make their money work for them, it has been claimed.

According to Lloyds TSB International, if people make good decisions about where to buy and how to finance their purchase they can make a healthy profit from property abroad.

"With the help of extensive research it is possible to identify foreign property markets which are about to take off. For instance, areas which are close to planned new airports or high-speed rail links often see a sustained rise in house prices," the bank stated.

"Buying in the right areas at the right time can allow you to make healthy profits from capital appreciation and rising rents in just a few years."

However, the bank warned that investing in property abroad can be affected by factors such as economic events and exchange range fluctuations, meaning it is important to have a flexible exit strategy in mind.

It also advised anyone thinking of investing in property abroad to consult an independent local lawyer as it is important to follow all regulations carefully.

Last week, financial commentator Katerina Nikolas wrote an article for Helium advising property investors to look at repossessed and distressed properties in Spain, which can be picked up for a bargain price.

Current exchange rates and falling prices attracting investors to Spain

Tue, 9 Feb 2010 00:00:00 GMT

Property searches are up for Spain as investors look to capitalise on falling prices and favourable exchange rates, it has been claimed.

According to British newspaper the Financial Times, many agents have said that price falls in Spain are drawing investors back to the country.

Furthermore, thanks to a strengthening GBP, Spain has become eight per cent cheaper for Brits in the last 12 months.

The number of people searching for properties in Spain in particular rose by 48 per cent in the same period, while they were up 341 per cent since December 2008.

Ann Wright, of property website primelocation.com, told the paper: "Interest in overseas property has shot up in recent months.

"The encouraging signs of recovery in the UK property market and economy and the resulting upturn in consumer confidence appear to have had a knock-on effect on the overseas market."

National Association of Estate Agents International recently suggested individuals looking to buy property in Spain should do so in the early part of 2010.

ECB cuts rate

Mon, 9 Mar 2009 00:00:00 GMT

The European Central Bank (ECB) has announced a cut in the main euro interest rate.

In its monthly meeting yesterday, the board of governors voted to trim the main refinancing rate from two per cent to 1.5 per cent.

Such a move may encourage foreign property investors seeking to buy in countries such as Spain, Cyprus, France, Portugal or Italy, as it could see mortgage rates reduced in those countries.

Any effect the cut may have on exchange rates between the euro and the pound may also be monitored, as if these become more favourable it could increase the buying power of British investors.

The cut this month comes after the ECB decided to keep rates on hold in February.

That decision represented a hiatus in a series of reductions, which have seen the rate lowered from 3.25 per cent before the November 2008 meeting.

Exchange rate 'will not affect Spanish attraction'

Thu, 15 Jan 2009 00:00:00 GMT

The fluctuating exchange rate is likely to have little effect on Britons' attraction to Spain, one independent travel expert has stated.

According to Simon Calder, the country will remain a popular destination, even if the falling value of sterling makes visiting Spain more expensive.

Noting that even though "the pound has been down in relation to the euro", he stated that this "doesn't mean we are going to turn our back to" the country.

"Spain is going to retain its position as our absolute favourite country," he added, news which may bolster the confidence of overseas property investors who have been considering purchasing homes in the country.

Mr Calder's comments echo those of UK-based property developer Taylor Woodrow.

The managing director of Woodrow de Espana, Victor Sague, argued that buyers in the country are continuing to "vote with their feet", despite recent reports of price crashes taking place in Spain's property market.

Investors advised to buy in sterling

Tue, 25 Nov 2008 00:00:00 GMT

Overseas property investors have been advised to use sterling to purchase homes in Spain. According to Martin Dell, of Kyero.com, converting funds into euros could make properties more expensive due to the decline in the value of the pound, reports Homes Worldwide. He noted that a property costing €100,000 would cost £86,000 at the moment...

Protect Your Spending Power From Adverse Exchange Rates

Tue, 26 Aug 2008 00:00:00 GMT

High inflation is a threat to your standard of living because it reduces how much you can buy with your money. Another threat to expatriates’ spending power is the exchange rate – for example, over the last year the Sterling to Euro conversion rate dropped around 15%.

With the Bank of England cutting its base rate in April to stimulate the British economy and the European Central Bank increasing its rate in July to fight inflation, the divergence between the two currencies looked set to continue. If the two banks were to maintain these tactics the exchange rate could worsen for expatriates and those looking to change Sterling into Euros, for example to purchase a Spanish property.

However exchange rates are hard to predict and with both Banks needing to fight the opposing threats of high inflation and low economic growth, future interest rate decisions are far from set in stone. The strength/weakness of the underlying economies will also affect the value of its currency.

If you intend to move to Spain you should look closely at your financial planning and, if necessary, restructure it to protect you not only against inflation but also the adverse effects of the exchange rate.

British retirees living in Spain tend to keep their savings in Sterling bank accounts and investments denominated in Sterling. They are highly likely to have Sterling denominated pensions. Some transfer an amount of money to a Euro account which can be a buffer against facing an exchange rate risk every time they wish to make a withdrawal. Others merely have regular amounts, such as pension income, sent to their Spanish banks, so every time a transfer is made it is affected by the exchange rate.

One way to overcome unfavourable rates is to use a currency agency. They usually offer better rates than high street banks. You can transfer money on the prevailing “spot rate” or fix a rate for up to two years ahead. The latter option could work in your favour if the exchange rate falls below what it is at the time the arrangement is made. You could lose if the exchange rate improved, but a fixed rate gives you the security of knowing how much you receive each month and that your income will not fall over the period.

A long term solution is to match the currency of your assets to your liabilities. It makes sense that if you are spending in Euros you should hold enough assets in Euros to cover your spending needs. Even if you move to Spain and then return to the UK some years ahead, it is still wise to have around four or five years of your disposal assets in Euros as a safeguard to unfavourable exchange rate movements.

Of course, the exchange rate may well improve but there is no guarantee that it will, and if it does, it is unlikely to reach the favourable level it was when the Euro was first introduced. On the 1st January 2002, when Spain adopted the Euro, the exchange rate was 1.63. A year later it had dropped to 1.53 and the following January to 1.42. It then moved closer to 1.5 and was fairly steady for a few years until last September when it began to drop. By the summer of this year it had fallen to 1.26. The future of the exchange rate is still an unknown and in the long term could climb. In the short term, however, and at the time of writing, experts predict that it could fall even lower.

When you review your portfolio, look at your pension arrangements. If you have a personal or private pension you could switch to a Self Invested Personal Plan (SIPP) where you can choose what investments to hold and in which currency.

Another option for many pension funds is to transfer it into a Qualifying Recognised Overseas Pension Scheme (QROPS) which allows you to change currencies.

QROPS are very flexible and can be set up in Sterling or Euros and so eliminate the currency risk from your pension fund for good.

A financial adviser will explain what the best strategy is for your personal situation.

Full story from www.blevinsfranksinternational.com

Expats 'stung' by poor exchange rates

Sat, 26 Jul 2008 00:00:00 GMT

Many British expatriates are not getting as much as they could when exchanging currency, according to industry experts.

FairFX.com stated that retirees in particular are getting "stung" by less than favourable exchange rates when they are planning a move overseas.

Speaking to the Daily Mail, chief executive Stephen Heath said people could reduce the likelihood of this happening to them by researching the market.

This, he stated, would help people identify which providers are offering the best value for money.

Mr Heath commented: "People who need to stretch their retirement pots as far as possible must shop around for the best rates."

He added that many couples in the UK are currently dreaming of spending their post-working lives overseas.

Research by NatWest recently revealed that many people believe that moving abroad has improved their quality of life.

According to the study, 91 per cent of expats from the UK say they are much happier living overseas.

Tourists advised to consider cost of overseas trip

Wed, 16 Jul 2008 00:00:00 GMT

British leisure travellers have been urged to consider the financial cost of their summer holidays. The International Currency Exchange (ICE) stated that tourists would benefit from taking exchange rates into account when choosing where they would like to visit. This would allow people to get the best value for money on their trip, as they will be...

Economic problems offer opportunities to investors

Tue, 8 Apr 2008 00:00:00 GMT

Overseas property investors could be able to take advantage of the current problems in the global economy, according to experts.

Currency specialist HiFX stated that the credit crunch and the resulting economic slowdown has led to some prospective investors "getting the jitters".

However, the organisation said the financial problems across the world are also having a negative effect on property sellers.

Therefore, people could be able to persuade estate agents who desperately need to meet their sales quotas to offer them a good deal.

Mark Bodega, director at HiFX, commented: "Buyers should remember that a drop in demand will mean vendors are also feeling the pinch."

However, he recommended that investors get a forward contract to fix the exchange rate during the transaction.

This, he said, would prevent people being affected by any market fluctuations and guarantee the final cost of their purchase.

The advice comes after ShelterOffshore.com stated that the credit crunch is not dampening British people's "insatiable desire" to own a foreign property.

Expatriates get lifestyle and financial benefits

Tue, 25 Mar 2008 00:00:00 GMT

Britons who move abroad full-time could reap lifestyle and monetary rewards, experts have stated.

According to Foreign Currency Direct, buying a property abroad is an "excellent investment" that can also enable people to enjoy a better quality of life.

Speaking to the Daily Express, chief executive Peter Ellis said that moving abroad would be a "great opportunity" for those who want to improve their lifestyle.

However, he recommended that people consider practical issues before packing their bags and buying a home.

Mr Ellis commented: "We would urge Britons looking to relocate to research the local amenities and resources of their chosen destination thoroughly."

This comes after research by Alliance & Leicester identified the main reasons for Britons opting to move abroad.

The weather was found to be a key motivation for 40 per cent of expats, while one in five people said they left because they were worried about rising crime in the UK.

Cheaper countries 'popular with Britons'

Thu, 4 Oct 2007 00:00:00 GMT

Many Britons want to enjoy a cheaper cost of living in foreign destinations such as Spain, a new poll has found.

Currency specialist HiFX said that expenses such as mortgage repayments in the UK were leaving many financially stretched.

As a result, many were said to be considering relocating to other countries in which they would pay less on housing and general expenditure.

A poll by the firm showed that Spain was a particularly popular destination, along with Cyprus, France and Italy.

Commenting on the findings, HiFX director Mark Bodega said: "It would now seem that more and more people are no longer considering emigration as a luxury but a necessity."

However, he added that people had to "do their homework" when considering a move abroad in order to avoid future financial difficulties.

According to Bank of Scotland International, some Britons expats are unaware that they can still claim some benefits from the UK government, even if they are living abroad.

Growing number of Britons 'want to buy abroad'

Thu, 30 Aug 2007 00:00:00 GMT

An increasing number of Britons have thought about purchasing a property abroad, according to a new study.

A survey by Foreign Currency Direct found that 23 per cent of respondents were considering investing overseas - up from 14 per cent six weeks earlier.

The firm described the increase as "no surprise", since Britain had experienced record levels of rainfall during the summer.

Peter Ellis, chief executive of Foreign Currency Direct, said: "We have had a truly miserable summer and property abroad continues to offer attractive investment opportunities."

In addition, the survey found that television shows were also highly influential in inspiring people to move abroad.

Currency specialist HiFX has also cited the wet summer as a major factor behind a recent surge in interest regarding overseas properties.

The firm said that the number of enquiries it had received this summer was twice that of 12 months ago.

Overseas property market 'booming'

Fri, 3 Aug 2007 00:00:00 GMT

Property prices in France, Spain, US and Italy have risen by more than 50 per cent, according to an expert.

Mark Bodega from currency specialists HiFX said that the Economist Research Unit calculated increases in the value of property in developed economies as $30 trillion (about £15 trillion) over the last five years, hitting a new total of $70 trillion.

"Whilst this boom has created a whole generation of potential property investors, it seems that those Brits who bought 20 years ago are now selling up, and choosing to purchase smaller properties," he said.

"In Spain, for example, Brits tend to move more inland away from the busy Costas,” he added.

Previously Mr Bodega had explained how the prospective entry of Cyprus and Malta into the EU in 2008 had already boosted overseas property purchases.

He said that higher tax payers in particular were enquiring about luxury apartments in Malta for investment and all investors were attracted to the island because of the lower taxation and absence of council, property and inheritance tax.

France and Spain top with overseas property buyers

Fri, 31 Mar 2006 00:00:00 GMT

France and Spain remain the most popular choice for overseas property buyers, according to a new survey. This is because the majority of British overseas property buyers are 'traditionalists' who see their overseas purchase either as a holiday home or somewhere to retire to. Foreign currency specialist HIFX reports that France and Spain made up almost half (43 per cent) of all its currency transactions.

Overseas Property CURRENCY OPTIONS: Save Money With the Right Conversion

Sun, 27 Nov 2005 00:00:00 GMT

The excitement of buying a new home in Spain or Portugal means it is easy to overlook one painless way of saving substantial sums of money " by booking your currency in advance to avoid exchange rate fluctuations and minimise bank charges. Ray Williams, the 68-year-old chairman of film and TV production company Moorcroft Productions, is a recent convert to this route. In 2001, he bought a two-bed apartment, off plan, at Cala Mijas on the Costa del Sol for pounds 70,000. He opened a Spanish account with Solbank, transferring sums from his UK HSBC bank account to pay the deposit and stage payments as work continued. 'I didn't know any better " I thought it was the obvious route to take,' he says. Until this year he continued moving a few thousand pounds at a time from the UK to Spain to cover running costs like taxes and service charges, and each time he paid bank charges. But in 2005 he discovered that foreign exchange firms sold to private individuals at commercial exchange rates, significantly better than those offered by high street banks. After comparing exchange firms he chose Currencies Direct. 'I could have saved tens of thousands over the years,' says Williams, who splits his time between his Spanish and High Wycombe homes. 'This year alone I think I've saved up to pounds 2,000. The bank rate today is about EUR1.42 to pounds 1, whereas with Currencies Direct it's EUR1.47 to pounds 1.' There are now scores of foreign exchange companies operating in the UK. They work like this: *You register with the firm, usually free of charge. *You are assigned a 'personal dealer' who will discuss the best way to get your chosen currency at the best date " timing is crucial in deciding on a rate to get so you can buy immediately, at a fixed future date, or at a time when rates are most favourable (see box). *You sign a faxed or e-mailed confirmation and payment form, stating where the funds will come from to buy the currency (typically your UK bank account) and where it will go to (typically your Spanish account). Independent on Sunday, The By Graham Norwood

Currency deals can greatly cut cost of foreign homes

Thu, 14 Jul 2005 00:00:00 GMT

By Hundreds of thousands of Britons leave the country every year to set up homes in foreign countries far away from the damp and the UK taxman. But whether fleeing to a retirement home in the sun or fulfilling a long-term dream to renovate a rustic ruin, buying a property abroad can be fraught with risks - not least from fluctuations in the currency markets.

The strong pound and ludicrous UK house prices have influenced many to pack their bags over the past few years. For a fraction of the cost of an average UK home, anyone with some sizeable savings can afford a comfortable property on the Continent.

Not surprisingly, one of the last things that most people consider when emigrating or buying abroad is where to get the best deal when switching sterling into foreign currency. A survey by Moneycorp, the foreign exchange provider, found that 80pc of overseas property buyers do not take this into account.

Even modest exchange rate movements can add thousands of pounds to the purchase price of an overseas property. A growing number of people also want their UK pensions or mortgage paid in a foreign currency and face the same risks.

Alexander Wright, director of private client services at foreign exchange provider Hifx, said: "To show just how much currency movements can affect the cost of actual buying abroad, we saw a property in Florida recently, priced at $250,000. It would have cost £131,000 on May 5 but by May 10, due to a strengthening in the dollar, it would have cost £133,333. That's an increase of £2,333 in just five days, or almost 2pc."

Whether converting a lump sum for a deposit on a house, or making several staggered payments to acquire a new- build home, most people still rely on their bank or building society to look after foreign exchange transactions. But for those who shop around and consult a specialist, significant savings can be made in lower charges and more competitive exchange rates.

Most people rely on banks for foreign exchange but significant savings can be made by shopping around

Typically, the high street banks charge £20 to £40 for an overseas transfer and some still charge commission for the currency exchange. HSBC charges existing customers a £9 transfer fee on transactions less than £2,000 or £21 for "priority payments" - most of the larger transactions - over that level, but no commission. Customers transacting through a bank rarely receive the most competitive exchange rate. Banks usually offer a "tourist" exchange rate, which is significantly less competitive than the inter-bank borrowing rate - the rate at which banks lend to each other - which many specialist currency providers track more closely.

Specialist foreign currency houses offer more commercial rates, do not charge commission and levy a much lower fee for electronic transfers.

Travelex, the foreign exchange provider best known for its high street bureaux de change outlets, also offers currency services for property purchases, emigration, buying antiques or even bloodstock such as racehorses abroad. It does not levy a transfer charge on exchange transactions.

Dino Leo, of Travelex, said: "Our rates are most competitive for transactions of £5,000 to £10,000 and upwards. For smaller sums, the rates are slightly less competitive. We are also about to launch a 'Regular Payments' service for pension or mortgage payments made abroad, which will cost £10 per transaction."

Moneycorp, another large foreign exchange provider, charges a £15 transfer fee for large transactions or £4 per transaction for smaller regular payments of no less than £250. Neither charges commission.

Mr Leo said the process of transferring sterling abroad is straightforward: "Our customers complete a registration form, which can be printed off from our website, and post or fax it back. We then request a copy of a passport and utility bill from the customer. One of our dealers then calls back to talk through the exchange rate options, a rate is settled on and we send out a confirmation letter.

"The client then sends the money to a Travelex holding account, from where it is transferred to the foreign bank. It usually takes 48 hours to transfer the money from the holding account, but it can be done on the same day in emergencies." The process is similar for small, regular transactions, although people often fix the exchange rate for a year, or even two.

Fixing an exchange rate for a year or more can be useful for those setting up a mortgage in euros, to ensure the buyer knows exactly what their euro payments will cost in sterling terms.

Transfer charges for regular payments typically range from about £4 to £10 across the industry. Some currencies - such as the South African Rand - are more volatile than others and as it can take several weeks between sending a deposit and completing on a property, currency movements are important.

Mr Wright said: "This type of currency risk can be avoided by fixing an exchange rate at the outset - known as a forward contract. It is especially useful for anyone buying 'off-plan' where they are required to send staged payments to a developer."

Customers usually have to pay a deposit of 5pc to 10pc to secure a forward contract. Martin Briggs, a senior consultant at Hifx, advises anyone making sterling to dollar or euro transactions to hold off a few months because both currencies are expected to weaken against the pound.

"Over the next two to three months we expect the dollar, which has been trading at around $1.83 against the pound, to settle at around $1.95 and the euro, which is trading within an €1.42 to €1.52 range against the pound, to settle at around €1.50. There will be good buying opportunities in a few months, although that will change later in the year."

The Federation of Overseas Property Developers, Agents and Consultants can advise on companies specialising in currency transactions.

Overseas property investors - Beware of currency fluctuations

Mon, 4 Jul 2005 00:00:00 GMT

UK property investors looking to purchase overseas should be aware of potential currency fluctuations in order to get the best deal, according to market experts. News From Assetz Property News Service Buying abroad has grown increasingly popular an option among UK property investors in recent times, with many attracted by the promise of cheap holiday homes in bright, popular locations. Figures show that growing number of UK property investors are turning their attentions overseas, looking for new investment opportunities in foreign markets. As many as three in four property investors are thought to be considering buying abroad in the near future, largely focussing their attentions on established holiday home hotspots in France and Spain for example. Conversely, surveys indicate that over the coming 12 months only 7.5 per cent of serious investors are likely to buy new properties in the UK. This is despite a high level of confidence among buy to let investors in general, recent studies having found more than half of all these investors to predict that the market will remain stable over the next 12 months, and 22 per cent anticipating a moderate rise. With house prices having picked up throughout 2005 and the pound remaining strong, many investors are looking overseas for a dream holiday home in the sun. Last year saw somewhere in the region of 54,000 people move to Spain alone, some 15 per cent of the total number of people (360,000) who moved abroad last year. However, a worryingly large proportion of these investors may not be taking enough notice of currency changes, potentially putting themselves at risk of losing money. A new survey conducted by foreign exchange provider Moneycorp confirms that 80 per cent of potential buyers do not even take into consideration how to get the best exchange rate. The concern here is that even slight differences can have weighty ramifications on property prices, especially for larger, more expensive properties. Examining this issue Alexander Wright, director of private client services at foreign exchange provider Hifx, uses a practical example. "To show just how much currency movements can affect the cost of actual buying abroad, we saw a property in Florida recently, priced at $250,000," he told the Telegraph. "It would have cost £131,000 on May 5th but by May 10th, due to a strengthening in the dollar, it would have cost £133,333. That's an increase of £2,333 in just five days, or almost two per cent." To avoid losing out buyers are strongly advised to shop around and investigate the best deal as opposed to relying on their bank or building society to look after the foreign exchange transactions.