Do you intend to buy a property in Barcelona in 2016? If so, whether you’d like to buy a 1-bedroom apartment with a balcony, or a 3-bedroom penthouse for you and your family, you’ll want the best exchange rate. After all, if the pound to euro exchange rate is flying high when you transfer money to buy a property in Barcelona, this cuts your costs!
With this in mind, what’s in store for sterling versus the common currency in the 2nd half of 2016, especially in light of the UK’s vote for Brexit? Let’s take a look, and see how you can make the most.
Protect yourself against volatility with a forward contract
To start with, you should be aware that the exchange rate could be unusually volatile in the coming months. This is because, given the UK’s vote to leave the European Union in late June, the UK is at an unprecedented economic and political crossroads. Right now, we don’t know if Great Britain will retain access to the Single Market, or just seek a Canada-style free trade deal, and this may swing sterling higher and lower.
Fortunately however, the pound’s volatility needn’t affect you when you buy a property in Barcelona. You can protect yourself by setting up what’s called a ‘forward contract’.
A ‘forward contract’ is when you lock in your exchange rate before you need to transfer your money. Hence, you don’t need to worry about the possibility of the pound weakening in the months to come, as the UK thrashes out the details of Brexit. Instead, because you’ve fixed your exchange rate ahead of time, you’re protected.
To set up a ‘forward contract’, just tell your currency dealer that that’s what you want to do. All you do is pay down 10% of the total sum you wish to transfer, with no fees and no extra cost, and you can transfer your money any time you like in the next 2 years.
Get the best exchange rate with a currency broker
Second, to get the best exchange rate when you buy a property in Barcelona property, you should transfer your money with a currency broker instead of your bank. This is because currency brokers can get you an exchange rate substantially better than your bank. This means you’ll receive hundreds of euros extra in your French bank account, when you buy your Barcelona property.
With all this in mind, you’re in a great position to get the most euros when you buy a property in Barcelona