Titan Properties fixes exchange rate dilemma

June 2008 confirms a 17% drop in value for the pound against the euro versus this time last year. British investors are tapping at their calculators and talking themselves out of an overseas purchase. But in the case of off-plan property many are scaring themselves unnecessarily and in fact crunching the wrong numbers. Titan Properties offers some assistance.

Andrew Benitz, Director of Titan Properties comments, “In Western Costa de la Luz the majority of smart property transactions are still off-plan due to growth yet to be realized in this area, so the counterproductive exchange rate only applies to any down-payment and not on the entire purchase price – unless of course you’re a cash buyer. In a typical 20% - 80% payment scenario, the weakened pound would only affect that first 20% with a euro denominated mortgage covering the final 80% and therefore no further exchange rate risk to bear, assuming rental income is in euros and goes some way to cover the monthly mortgage payments. People are erroneously frightening themselves by adding 17% on to the full asking price falsely believing they have to find tens of thousands of pounds more, whereas just a couple of thousand is more likely. Your loss on currency exchange on a €200,000 euro property from 1.4 euros to the pound versus 1.26 to the pound is not £16,000 pounds but just over £3,000 pounds.”

The good news is that Titan Properties is taking the hit from the pound’s tumble by guaranteeing for a limited period an exchange rate of 1.4 euros to the pound (today’s actual rate is 1.26) for any required deposit payments on its best off-plan developments. These include Nuevo Portil apartments and townhouses, much of the property available in Costa Esuri, projects within Isla Canela and also its inland gem – Jardines de Guzman.

To help you with the number crunching, here are two working examples:

Hoyo 19, golf side townhouse development in Nuevo Portil
Three bedrooms priced from 227,900 euros with 20% - 80% payment terms
20% down-payment December 2007 at 1.4€/£ – £32,557 pounds
20% down-payment June 2008 at 1.26€/£ - £36,175 pounds
Titan Properties fixed 1.4€/£ exchange rate - £32,557 pounds
A saving of £3,618 pounds to the purchaser.

Jardines de Guzman apartments and townhouses set inland
One bedroom apartments priced from 75,541 euros with 20% - 80% payment terms
20% down-payment December 2007 at 1.4€/£ – £10,792 pounds
20% down-payment June 2008 at 1.26€/£ - £11,991 pounds
Titan Properties fixed 1.4€/£ exchange rate - £10,792 pounds
A saving of £1,199 pounds to the purchaser.

For further clarification and to take advantage of this limited offer, visit titan-properties.com.