Foreign Exchange for Individuals

CD: Why did you want to buy in Estepona?

Mark Manley: It’s located by the sea with views of Gibraltar. It’s close enough to the nightlife of Puerto Banús but not too close to it! There’s also easy access via several airlines to Malaga.

CD: Why did you decide to buy overseas?

Mark Manley: Mainly the weather. I wanted to have a bolthole away from the grey and wet UK in the winter.

CD: How did you research buying your property?

Mark Manley: On the internet and through magazines. I also made visits to several countries and possible locations for purchase. I also had recommendations from friends and clients and finally I spoke to a recommended and reliable agent with a lot of experience.

CD: Were there any problems during the purchase?

Mark Manley: Only just before completion when I learned that asking a UK bank to transfer money immediately is akin to asking for a free flight to the moon! I didn’t get “Que?” as an answer – but it wasn’t far off!

CD: What advice would you offer to others considering buying overseas?

Mark Manley: The research stage is absolutely critical. Make sure you ask yourself the following crucial series of questions:

a. How much can you afford – don’t go beyond your budget
b. What do you know about the area you are looking in? Visit – seeing things on the net is no substitute. Take a year and visit several places. When you think you know the area you want to buy in make several visits to it at different times of the year
c. Accessibility is critical if it’s just a holiday home. How long is the flight there and do a lot of airlines have routes there? Also, what is the travel time from Airport to your home?
d. Do you have friends or family who have bought in that country? Who did they use and were they good?
e. Plan how often you realistically think you can travel to your holiday home
f. When you visit before a purchase, speak to other British people who own homes in the area to find out its pros and cons
g. Do your research on the net about activities in the area, climate changes over the past 5 years, and any planned development where you are thinking of buying
h. Get a good, English speaking agent in the area via recommendation – ditto with the local lawyer
i. Read about the legal and tax aspects of the property purchase on the net and in books – there are hundreds of sites and books with all the information you need
j. Consider banking – look at the pros and cons of having an account abroad (which you will almost certainly need) and take advice on which one to go with.
k. Shop around if you want a foreign mortgage and think twice about taking it. The rates are often lower but in a lot of foreign countries there is the equivalent of stamp duty on a mortgage – not just the purchase.
l. Also be aware of how currency fluctuations can massively affect how much you pay on purchase. You can save or lose a lot of money by agreeing to a completion or transfer at the right/wrong time
m. See it as a long term investment and not a quick kill
n. Beware of schemes which offer you a big reduction on local taxes by doing a “cash” deal for part of the purchase price. Don’t forget that when you come to sell the property the capital gains taxes will then be a lot higher and you are likely to lose out in the long run. Penalties for flouting foreign tax laws can also be severe – just pay the appropriate taxes and ignore cash deals – you can sleep better in your new pad!
o. Don’t start telling all your friends you will let them stay in your place – when you have slaved to get it as you want it you will find yourself far less willing to let your friends and their hyper active children have the keys!
p. Finally, start learning the local language. It is very, very important. You WILL need to use it at some point and you will be accepted much more quickly when you at least try.

CD: If you are using your property as a holiday home how often do you intend to use it and will you rent it out when you are not using it?

Mark Manley: Yes – every 6 weeks for a long weekend and 3 weeks in school holidays throughout the year. Renting – see above! Fully intended to – but not now!

CD: Why did you choose to use Currencies Direct?

Mark Manley: I read about it in the Easyjet flight magazine and in another magazine about buying abroad. It sounded sensible. On the currency transactions I made I calculated that using CD saved me in the order of £12,000. The team’s response times are fabulous and they are willing to give sound guidance on what is likely to happen to currency rates in the next few days/ weeks – Mark O’Sullivan was assigned to me. I cannot sing his praises too highly. He was a star.

CD: Did you approach your bank about arranging the currency transfer?

Mark Manley: Yes and they wanted to help – but it would have been considerably more expensive than using Currencies Direct.

CD: What would you recommend about Currencies Direct’s service?

Mark Manley: Speed, expertise and great customer relations.