Why Using A Bank To Help Buy Overseas Property Is Wrong
By Nicholas Marr
If you're looking to buy an overseas property, have you considered how you'll deal with
paying for the property? An overseas property purchase will require you to convert your sterling into euros,
dollars or other currency. This exposes you to the volatile foreign exchange market and the amount you pay for
your property could be significantly affected by exchange rate fluctuations.
Savvy Property Investors
Seasoned international real estate investors all know that when buying property abroad profits are made on
the day of purchase. Securing the best price means that profits are easier to obtain on the sale. Selecting a
buyers market and examining the exit strategy are two tips I would recommend to reduce the risk on your bottom
line.
Don't Ever Use a Bank!
One way to avoid any unwanted surprises is to use a specialist currency company when buying property abroad.
Here are two reasons to speak to a currency broker before you buy your overseas home.
Fixing your exchange rate
Imagine that you've saved up for years to buy your dream foreign property, only to find that the price has
increased by a quarter. This is entirely possible due to the volatile foreign exchange markets which can see
exchange rates move by over over 20 per cent in just a few weeks. Suddenly, your proposed purchase can suddenly
be more expensive than you'd anticipated.
Currency exchange brokers can help solve this problem by allowing you to fix your exchange rate up to a year
ahead. It allows you to find a property at a price you can afford and then to fix the exchange rate so the
price remains constant as the transaction proceeds.
Save money on your exchange rate
When you need to transfer large sums of money from one currency to another to buy an overseas property -
your best option is again to use a currency broker.
Currency brokers make their profit from the 'currency exchange margin rate'. This is the additional rate you
are charged on top of the interbank rate for converting currency.
When buying a property abroad, it is sensible to use a currency broker that quotes a low currency
exchange margin. Currency exchange brokers usually offer the best deals because they specialise in currency
transactions and can therefore afford to give the most competitive rates.
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