Brexit is causing problems for many expats. It does not matter if you live in Spain or Portugal, you are just as likely to have some financial concerns. Future foreign exchange rates are a major concerned for many expats. How do you know that you are going to have enough money to live on, and how much is your UK pension going to be worth.
Should I sell My Villa in Spain
Property owners in Spain are worried about the property they own. Are they going to be able to keep up the maintenance of your villa on a lower income if your pension is affected by a Brexit? If, you rent your villa in Spain out, are you going to have to pay higher rates of tax? Will people want to pay as much for renting your villa in Spain? There are many things to consider, and there is really very little guidance available.
Property Prices in Spain After Brexit
What is going to happen to property prices in Spain after a Brexit? No one really knows, but it is likely that property prices will slump as Sterling will be lower than it is today. It will be less tempting to buy a villa in Spain because of worsening exchange rates.Most large European banks are betting that the Sterling will slump even further. It goes without saying that a poor exchange rate will lower the price that you get for your villa in Spain, should you want to move back to the UK.
Foreign Exchange Rates for Expats in Spain
Also, if there are more properties on the market, there is a likelihood that many UK property owners in Spain, will lower their prices to get their villas sold off so that they can return to the UK or perhaps go into rented accommodation in Spain. Once again, foreign exchange rates are going to have huge effect on any profit that you may get from your villa. You are likely to make considerably less profit on your villa in Spain.
The Final Outcome – Should I Sell my Villa in Spain?
So, what should you do? Some people say that a Brexit will not effect property values in Spain. The problem is that so many other markets have opened up, and many more markets will open up once the UK complete the Brexit negotiations. There is a surplus in the US housing market, and flights are cheap to the US now. President Trump is keen to increase foreign investment, and the Americans do speak English. It is likely that a lot of Brits will choose to invest in other parts of the world, or even make foreign property purchases a thing of the past. After all, holidays to foreign destinations are cheaper today, and you are spoiled for choice.