The purchase of a property in Mallorca involves a major financial commitment and with it come important decisions ranging from opening bank accounts; considering mortgages; putting in place appropriate insurances; currency converting and currency transfer.

It is important that due consideration is given to these matters at the very earliest stages, when planning for a proposed acquisition, and not left to when a property has been identified and you are negotiating the purchase. By considering these matters at the outset you will be in a much better position to complete a purchase successfully and at the best price. At Novi Property Mallorca we recommend:

• Before you start searching for property consider your budget and whether you need a mortgage. If you do, try to put this in place at the outset, either directly with a bank, or via a broker. In this way you will save time once you have identified the property you want to buy; are therefore less likely to lose the purchase to another person prior to signing contracts; and will also be in a position to help negotiate the best price as the owner will know you are able to act quickly.
• Open a bank account at the outset and make arrangements to transfer, or have ready to transfer, your deposit monies, generally 10%. Again this will allow you to act quickly, while still undertaking the appropriate due diligence, negotiate harder when the moment comes and, importantly, reduce the risk of losing the property to another by acting promptly.
• Decide how you will transfer money (if it is from outside the Euro Zone), and when and whether you want to consider fixing an exchange rate for at least some of the monies you will be transferring. Remember each time the exchange rate changes, so does the effective price of any acquisition to you. The movement may go in your favour but equally it may not and suddenly your dream property could be 5%, or more, more expensive! We recommend you work with a currency specialist to discuss your requirements and manage some of this risk by transferring money at the outset, or fixing the exchange rate.

At Novi Property Mallorca we will be happy to help and guide you in relation to all these financial aspects, working in partnership with a selection of carefully chosen institutions, consultants and advisors.

Further Financial Information:

• Arranging mortgages in Mallorca - How to arrange a mortgage in Mallorca and what information do you need.
• Get a mortgage quote - Independent and professional mortgage advice.
• How to get the best exchange rates - Currency exchange services from our Currency Partners HIFX
• Property insurance - Specialist property insurance for residents, non residents and holiday home owners