Exchange rate consideration (yes again)
 

I've just nipped back into the forum after a long time not reading/posting and found an interesting thread only to find it had been randomly closed! OK. Maybe it was going nowhere. However I'd just like to state my experience in exchange rate change situations. We were building at the time of the last massive drop and ended up owing a lot more than we had. Things since then have been VERY difficult. I'm sure we aren't the only people who got caught out at that time. Please be careful if you have one foot in each country and are about to make the move that you don't fall in the middle as we did. We're still struggling but we are still here. Many have given up and gone back in a much worse state than when they started. If you are making an offer on a house make sure your money is in the currency you are buying in. If you are building, Make sure you have enough money in the currency that your contract is in to get your house into a secure state at least.

Re: Exchange rate consideration (yes again)
 

Previous thread I don't think was randomly closed. There was a lot of good advice and information put on for the OP as you have also given in your comment above, the OP from that thread though didn't seem to want to hear what was being said or accept what information was being offered.
Like yourself but for different reasons we too were hit hard by the last deflation of the pound. Also like you we still have our property and as no longer a mortgage holder will not be hit as hard should similar happen. Many may say now, it wasn't that bad but strangely you see them out socialising etc now where they were not back in 2009 - 2012. Only thing I would add yes it is a problem when buying renovating etc but for many with income being from UK pensions then it is a problem ongoing if the rate falls too low, forget that at your peril!

Re: Exchange rate consideration (yes again)
 

Hi angiescarr,
Nice of you to post this thread. It shows that you care for those who follow in your footsteps and wish them well. I pray that you do well and flourish for the future.
Best regards
jonboy

Re: Exchange rate consideration (yes again)
 

Thanks very much Jonboy :-) Someone once asked me "why do you always seem to get what you want?" My answer then...and now. "Sometimes you have to want the things you've got, when you can't get (all) the things you want" And we do ;-)

Re: Exchange rate consideration (yes again)
 

We were looking at buying our place in June this year but we might have to put that off depending on what the exchange rate is doing closer to the time. It's now looking like.it will go low for a while.

Re: Exchange rate consideration (yes again)
 

It's not all about exchange rate. Property price rises may negate that benefit. Similarly if you are releasing funds from other equities etc. eg shares, then these values may/are falling.
There's a lot good fortune when it comes to the timing of a purchase. If you can afford it go for it, otherwise you may keep putting it off until it's too late.

Re: Exchange rate consideration (yes again)
 

Good advice thanks. In going to purchase with cash from my lump sum and severance payment. I will take these factors into consideration.

Re: Exchange rate consideration (yes again)
 

It's may be a bit late now but when I was looking at buying I took out a foreign currency account with HSBC, this secured your exchange rate but kept your money in the UK, I'm sure other banks have similar

Re: Exchange rate consideration (yes again)
 

Exactly!

And, if a 10 cent shift down from what has been a high point of many years is making you hesitate then I think you should take a moment to consider how committed you really are.

In a property market with so much stock and that still offers the chance to negotiate prices down, a shift from 1.40+ to 1.30+ shouldn't be the deal breaker, unless you are moving to a highly desirable area where things go for asking price and you are having to stretch yourself to the limit for the property you want.

Make it happen. You can if you really want to.

Re: Exchange rate consideration (yes again)
 

I agree if it was only ten cents. But exchange rates can fall dramatically too in my case it crashed from 1.50 euros to the £ to 1:1. That's a life changing crash that you never recover from if your money is in the wrong place at the wrong time. And of course it can happen in reverse.

Re: Exchange rate consideration (yes again)
 

I wouldn't say I was hesitating myself in any way about moving to Spain. Looking for the best exchange and timing is what I was doing but maybe not as important as I thought

Re: Exchange rate consideration (yes again)
 

Can I ask whether when building/buying property here, how did you bring your money over? I am considering both buying and building with an autopromotor loan but I have been told the best way to bring money over from the UK is through 'divisas' and to wait until the exchange rate is good before making the exchange into euros.

Also, although I am aware that the market is at its lowest here now, I am still thinking investment here is a good idea due to it being due to (slowly) pick up and due tot he fact it certainly can't get any worse and prices are at their lowest. However, does anyone regret buying or building here and advise against it for whatever reason?

Re: Exchange rate consideration (yes again)
 

It makes sense of course to as you say buy when the rate is favourable. However it can be difficult to decide when the right time is. But you can safeguard yourself a little once you have decided on a property and committed to buying by setting up a forward exchange contract. This at least locks in your final payment at a known exchange rate, all the currency transfer co's can arrange it for you of course there is a few but you get peace of mind.

Re: Exchange rate consideration (yes again)
 

Set yourself a price limit for property in UKP and stick to that regardless of what happens to the rate. Negotiate down to that level. As long as you get the property you want for the price (UKP) you are willing to pay, what happens to the rate really doesn't matter.

Although there is the cost of living thereafter, of course.

Re: Exchange rate consideration (yes again)
 

Thanks all good advice. We are looking at parity when we look at our cost of living in Spain. Work pension, rental income for living expenses etc and a contingency account.