Plans for buying property may have been postponed for a while due to the Coronavirus lockdown restrictions, but as these begin to ease, Brits’ interest in foreign property has been reignited. Now cities in such European countries as Spain, France, Italy, Portugal and Greece are sought after, as Brits’ love for warm climes and sandy beaches has been rekindled.
Costa del Sol in Andalusia, southern Spain, has always been one of the most sought-after locations for Brits and will continue to remain one of the most desirable places for property investment. While the real estate market has suffered considerably during the coronavirus crisis, since 18th May when viewings have been permitted again, there has been an increase in requests, boosting confidence that the real estate market will undergo a quick recovery.
Costa del Sol
Famous for its beautiful beaches, art and culture, amusement and national parks, the birthplace of Picasso has always been among Brits’ favourite places, both for their holidays, but also for living and buying property.
Its beauty and popularity have not faded due to the pandemic. Instead, luxury villas and high-end developments in hot spots have retained their value. Other areas might become even more overpriced, while other less sought-after locations might have more realistic prices. According to Olive Press, “when it comes to new developments along the Costa del Sol, again, this wonderfully touristy area ensures a healthy outlook. The construction industry is seeking help to ease it through these difficult times, with calls to rethink new construction tax and bureaucratic processes.”
What to consider
- Prices and Currency Volatility: The cost of a European property in Sterling can change drastically due to currency volatility as a result of political, economic or other events such as the current pandemic. Markets will always be moving, and prices will remain unpredictable, especially with Brexit uncertainty, the Bank of England’s possible move into negative interest rate territory and the increasing worries about the slow economic recovery.
- Brexit: This is another topic that is likely to concern home buyers as there might be significant changes in regulations including the stamp duty and increased taxation. Despite the uncertainty, UK citizens will be able to buy homes abroad and live there. You will be able to stay, if you are legally resident in Spain before the transition period ends on 31 December 2020, but you will need to register as a Spanish resident if you want to stay in Spain for more than 3 months. If you are living in Spain before 1 January 2021 and register as a resident after 6 July 2020, you will be issued with a biometric residence card (Tarjeta de Identidad de Extranjero). If you move to Spain after 31 December 2020, there will be different immigration requirements.
- Your strategy when transferring funds: Since you will be transferring a large amount of funds, you will need to consider how much that will worth after the exchange. Getting in touch with a currency specialist such as Universal Partners FX can help you navigate the current market while taking into consideration your specific needs, goals and your budget.
If you are considering buying your dream home in Spain, get in touch with Universal Partners FX so you can have peace of mind when sending a large amount of money overseas. If you want to schedule ahead and safeguard your funds, talk to one of their foreign exchange experts today.