Simon explains the current state of play:
“Spain is still in the top five places to buy abroad, but we are finding that some people are waiting to see what happens with Brexit before committing to buying. However, it looks like they could have a long wait before everything has been thrashed out.”
“Although I have seen the number of purchases made by Brits in Spain reduce when compared to last year, they still made up a third of all non-resident purchase enquiries that I receive, which is similar to the previous year’s figure.”
The poor exchange rate has caused an issue, with the pound dropping 14-16% against the euro since Brexit was announced. Exchange rate fluctuations can significantly impact the budget available to buy a property as well as how much you have to live on each month.
Adam Jordan, a senior dealer at Moneycorp, one of the UK’s fastest growing foreign exchange companies, said:
“The current lack of progress with the Brexit negotiations is already having a negative impact on the value of the pound. Not only is there a genuine fear that Britain could leave the EU with no deal, but it raises questions about the current government’s strategy.”
“Given the apparent lack of contingency planning for a ‘no deal’ Brexit, we could argue that this may have a negative impact on the value of the pound making the cost of any future property purchase hard to manage.”
There are three ways to send your money overseas. Either by sending large lump sums as required, fixing a rate today for future use, or by making regular payments each month to pay for a mortgage.
It is reassuring to see that Simon isn’t overly concerned about the current market performance. He said that:
“Personally, I do not think people should be put off from buying in Spain in the current market. It could be unsettled for a long time and things can get worse as well as better. It is still a popular destination to go on holiday and people are still renting out villas/apartments and therefore, if you have the finances and it is your dream to buy abroad, it is still worth considering.”
