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Do you long for a Spanish holiday home?

Do you long for a Spanish holiday home?

Category: Offshore Banking

Updated: 03/12/2014
First Published: 02/12/2014

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

There's nothing quite like the thought of having your very own holiday home. You'd have the chance to jet off as soon as the moment takes you, and better yet, you'd have all your creature comforts – it'll be a home away from home, with the minimum amount of pre-planning. It seems that this is a growing desire for a lot of Brits, particularly in Spain, with Spanish property purchases rising at their fastest rate for three years. Isn't it time you got in on the action?

The rise of Spanish property purchases

Figures from Currencies Direct show that property-related money transfers to Spain are up 25% compared with 2013, marking the fastest rate of annual growth for three years. And, compared with 2011, sales are up by more than half (56%), showing the increasingly renewed appetite for a place in the sun.

Analysis would suggest that this is due to a combination of the strengthening pound, more economically-confident househunters and falling Spanish property prices – essentially, you'll be able to get more from your money than you did a few years ago, and a lot of people are hoping to take advantage of the market to snap up a bargain.

And there are some great deals to be found. There's been a particular rise in the proportion of properties bought that are worth more than £250,000 (up 21% year-on-year) – it may be the price of a typical British property, but in Spain it could get you a three-bedroom, second-floor apartment in an exclusive development, complete with marble flooring and access to a pool, gym and spa.

Sales of more modest properties are also on the up, with properties worth more than £100,000 increasing 25% year-on-year, and even that could get you a fantastic holiday home at a fraction of the cost of a typical UK property. In fact, the average sterling value of Spanish properties has fallen by 6% since 2013 and by 9% compared with 2011, sop it could be a great time to buy.

Phil McHugh, trading floor manager at Currencies Direct, said: "For the last 18 months, the pound has strengthened against the euro, making Spanish property more affordable and boosting buyers' confidence. That's almost certain to continue in at least the medium term, making prices progressively lower."

Get the timing right with international money transfer

Are you looking to make the most of it? If so, it could be time to get your finances in order. Looking for the right providers to arrange international money transfers should be at the top of the agenda, but as Phil points out, timing is everything.

"Buyers may want to phase their purchases, to make the most of an even stronger pound in future," he added. "Or, you could take out a limit order, agreeing to buy currency only when the exchange rate reaches a preferred, higher level.

"However, you need to be aware of how currency fluctuations can have an impact on large, international purchases – especially if you're treating it as an investment. The general trend may have been upwards but there have been some noticeable drops in that time – if those correspond with a purchase, that's great news, but if that's when you're looking to sell up, it could cost you thousands. Buyers considering investing in a foreign property should therefore think very carefully and look at ways to hedge their investment."

It all comes down to timing, not to mention having the experts on your side who can make the process as simple and cost-effective as possible. You not only need to find the best exchange rate, but you need to make sure you're not spending a fortune in fees – and you also need to make sure the transfer is arranged in a timescale that meets your needs and expectations. Having the currency specialists to help can make all the difference, so get in touch with the experts and see if you could realise your dream of foreign homeownership.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.