Buying property abroad?
If you’re buying a property abroad, you may need to transfer some funds overseas to cover the cost of the purchase.
When it comes to making a currency transfer, the exchange rate you secure can make a massive difference to how far your funds go. However, finding the right time to move your money can be tricky.
The currency market is constantly fluctuating. As a result, the exchange rate could shift significantly between making an offer on a property and completion, potentially leaving you thousands better (or worse) off.
Typical savings on a property purchase
For instance, in May the pound euro exchange rate fluctuated between €1.16 and €1.19. That difference of three cents may not initially seem like much, but with larger amounts it can translate to thousands.
On a pound-to-euro transfer of £200,000, that three-cent shift in the exchange rate amounts to a €6,000 difference.
Fortunately, there are ways to protect against unfavorable movements.
Different currency exchange services
Specialist currencies brokers, such as Currencies Direct, offer a range of tools to help you get the most from your transfer.
With a forward contract, you can lock in a favourable exchange rate for up to a year. This way, you won’t miss out if the market moves against you.
Limit orders allow you to set the lowest exchange rate you’d be happy with. If the market falls to this level, your transfer is automatically triggered. You won’t get less than that targeted exchange rate, but you’re still free to transfer if the rate strengthens.
If you want more control over when you transfer, you can keep up to date with rate alerts. Simply target a particular rate and you’ll get a notification when it’s reached.
These different tools all have their uses, and can help make sure you’ve got the best chance of getting the most from your money when you’re buying a property abroad.
If you want to know more, or need some guidance, you can get in touch with Head of UK Partnerships, Mark Bonard on 020 7847 9400 Ext 4515. Currencies Direct have an excellent rating on Trustpilot and thousands of five-star reviews. They’ve also won the MoneyAge Money Transfer Provider of the Year award four out of the last five years.