Don’t just cross your fingers, call us!
With Article 50 rapidly approaching, it is worth remembering the satisfied expressions on the faces of those people who locked in a currency before the referendum.
Daffodils and crocuses in the grass, lighter evenings and a bit of warmth; spring is definitely in the air. If that’s not enough to put you in a good mood this weekend, maybe the arrival of February’s pay day will help.
The imminent arrival of spring is the prompt for many of us to think about buying an overseas property. It’s time to open the windows, take a deep breath of fresh air and see the world beyond. This is a good time to organise that viewing trip: many airlines will still have sales on, the holiday hotspots won’t be packed with tourists yet and estate agents will be hungry to get a good sale under their belt early in the season. They have suffered a long cold winter just like the rest of us.
This spring there is, however, a cloud in the sky. No, I don’t mean Storm Doris, which is rocking the south of England outside my window right now, but, of course, Brexit.
Article 50 will have been triggered before the daffodils give way to bluebells and the pound could take a beating. It may not, given that we have known about leaving the EU for some time, but it is nevertheless a risk that makes putting down an offer on a property somewhat problematic. If you find that lovely home in the Costa Blanca or the Dordogne and stick a put a few thousands euros down to secure it, or sign your purchase agreement and put down a 10% deposit at, say, €1.18 to the pound, in the month or two to completion the pound could have suffered an Article 50-sized drop. Then you will be paying the other 90% of the purchase price at a considerably worse rate.
There is absolutely no reason for Article 50, or even a falling pound, to stop you buying your dream home abroad. By taking out a Forward Contract on your currency you can lock in an exchange rate for up to a year. Property buyers who did the same with us just before the referendum saved huge amounts of money on their overseas home purchase – and have been enjoying a considerably warmer and sunnier winter than me!
Give your Smart trader a call on 0203 879 6529 today to discuss your options.