Don't buy a property without knowing its real price
Would you agree to buy a property in the UK if you knew the price could change by a few thousand pounds even after you had agreed a purchase price? Obviously not. Unfortunately, thousands of British people still do this when buying overseas property despite there being an easy way to avoid it.
When you purchase a property abroad, you’ll be paying for it in the local currency, be it euros, dollars or another currency. This means you’ll need to send funds for the purchase, usually from your UK bank account, to an account in the country where your property is – typically yours or a notary’s. However, constantly fluctuating exchange rates mean the amount of pounds you’ll need to exchange to meet the agreed purchase price in the local currency is constantly changing – one day it could mean you need less, the next more.
Here’s a real example. The current asking price of this two-bedroom two-bathroom townhouse, situated in a quiet cul-de-sac in the resort of Cabo Roig on Spain’s Costa Blanca is a tempting €140,000 (for more details contact OGC on 0207 898 0549). However, over the space of just three months the price in Sterling to British buyers fluctuated by a hefty £5,580, thanks to nothing more than exchange rate movements. In this instance the exchange rate has moved in favour of anyone transferring pounds into euros – however, it could go the other way. Here’s how the price in pounds changed
|Date||Approx. Smart £/€ rate||Property price|
The way to eliminate this uncertainty is to use a currency transfer specialist, such as Smart Currency Exchange, for sending money to an overseas bank account – DON’T ask your bank to do it for you. Firms like Smart Currency Exchange will allow you to secure an exchange rate for an agreed transfer, which you can use for up to a year in the future. This means that once you have know what your property abroad will cost you, you can effectively fix the price of it in pounds as well as the local currency. In addition to this, a currency transfer specialist will always offer you a far better exchange rate than your bank.
To find out more, download Smart Currency Exchange’s free guide by clicking here or them NOW on 0808 163 0102
The real cost of an overseas property
Can you guess how much this cheerful property on Spain’s sunny Costa Blanca costs? The truth is, for too many British people it’s impossible to say. Why? Because fluctuating exchange rates mean typical buyers from the UK don’t know until the day they make a currency transfer how many pounds they’ll need to exchange to Continue Reading…
Tracking the pound against key currencies
Readers following the euro would have noticed a spike against the pound at the end of June. This followed the EU Summit when EU leaders finally agreed on measures to start tackling the lingering Eurozone debt crisis. If you were repatriating funds to the UK, it would have been a convenient window to save a Continue Reading…