Unsurprisingly, the long drawn out Brexit process is starting to take its toll on the British public. While we’ve not seen a direct impact on property sales in Spain, we can be certain that there are people who are sitting back waiting to find out what’s going to happen and feeling like they’re living in limbo, worried that their dream of moving to Spain may never happen.
So, if you’re coming across UK buyers who seem a bit reticent to invest at the moment, here are a few tips to help reassure them that there may be no need to worry.
Demonstrate the strength of the property market
One of the reasons we publish data regularly is to give you the opportunity to see how the housing market is faring, as well as enable you to offer qualified advice to those buyers who are asking for your opinion.
The most recent Kyero House Price Report, published in May, shows that recent growth in the market is very much continuing. In fact annual growth is sitting at 8.5%, with the areas of Cadiz, Granada, Mallorca, Alicante and Barcelona showing the highest rise in prices. This report is extremely positive, showing that things are far from stagnant. Sharing this kind of up-to-date information with prospective buyers will give them some confidence in the current market and allow them to make more informed decisions about the best time to invest.
Suggest they protect their budget with smart currency exchange
For Brits considering a property purchase in Spain, one of the biggest concerns currently will be the effect of exchange rate dips on the value of their money. The uncertainty of the situation with Brexit means that at any moment a decision could be made by the UK government that is unpopular with the markets, causing the pound to plummet in value. Even if this is only a short-term dip it could have a very real impact on a home buyer’s budget at that time, meaning they can suddenly afford much less. Worst case, if they are in the middle of a property deal as the pound falls, they may even no longer be able to afford the property they’ve agreed to buy.
In order to guard against such an eventuality, talk to your nervous buyers about taking out a forward contract. This is a way of locking in today’s favourable exchange rates for up to a year, meaning that the risks of being stung by a temporary currency dip are far lower.
Suggest your prospects look at the websites of currency specialists Smart Currency Exchange, Rational fx and TransferWise for more information. And always remind them that there are risks involved in locking in currency at a particular rate, and they should always seek independent financial advice if they are unsure.
Keep adapting your processes for international buyers
We post a wealth of information about international buyers, what they’re looking for and how best to approach them in terms of making sales. Read up on some of these and make sure you put them into practice.
Try these for starters: Learn everything you need to know about British buyers, understand more about the processes your UK buyers are used to so you can avoid causing unnecessary stress and find out what international buyers really care about so you can sell to them more effectively.
Or if reading isn’t your thing, you can listen to plenty of UK buyers on our podcast discussing their recent experiences of buying property in Spain.
Creating straightforward processes and providing reassurance and support every step of the way will benefit you now more than ever.