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Posted February 5th, 2009 by Jackie

Considering a move back to the UK?

If you own a property in the Euro zone, now could be the best time to sell and make substantial profits.  With Sterling being incredibly weak against the Euro, there hasn’t been a better time to make money from changing Euros back to pounds.

Even if you’re forced to sell your property at a below market value (due to slow market conditions), you can still realise hefty profits. Recently the euro has been 30% stronger than Sterling which is a huge difference from when most people purchased or invested overseas.

For example, Mr & Mrs Walker spent £100,000 (€145,000 Euros) on a house in France in February 2007 and recently decided to move back to the UK for family reasons. Unfortunately the house failed to realise any capital appreciation…however, due to the exchange rates, when Mr & Mrs Walker converted their Euros back to Sterling, they realised a £31,000 profit!

Considering this same scenario with larger amounts, £200,000 spent would have net a £62,000 profit and £300,000 would have provided £93,000 in gains. And provided that you’re able to sell your property for a price higher than what you bought it for, the figures will be even more remarkable.

And what about selling at a loss? Property investor, Mr Brown, needed to quickly shift an overseas property that he purchased in 2006.  He sold the €150,000 property at a €20,000 loss in January. After repatriating his funds back to the UK, he actually realised a £24,100 profit.

To ensure that you keep your profits, however, it’s paramount that you use an international payment specialist to exchange and transfer your Euros back to the UK. When using a specialist, you can save up to 4% on better-than-bank currency exchange rates (that’s £4,000 for every £100,000 transferred!) and you’ll have the opportunity to fix a rate. Fixing an exchange rate will allow you to reserve today’s euro rate rather than gambling on where the rate will go in the future.

For example, Mrs Thompson sold a property in Italy in January knowing that she would have €230,000 to exchange and transfer back to the UK in two months time. When calling an international payment specialist she was happy with the rate of on offer and thus fixed it. By reserving the rate, Mrs Thompson knows the exact rate of exchange and thus the total amount of money that will be transferred back to the UK. Mrs Thompson effectively eliminated the risk of her funds depreciating in value.

Selling a property in the Euro zone truly has the potential of providing large returns provided that your intention is to exchange the Euros into Sterling.  It’s uncertain as to how long the strength of the Euro will last so the time to act is now!

Charles Purdy is a Director at Smart Currency Exchange Limited – the international payment specialists. To move money to or from the UK go to www.SmartCurrencyExchange.com for more information.

The Newspaper – August 2010
This Website – July 2010

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