Three reasons why buying abroad still makes sense
It is understandable that some people who were thinking about buying property abroad, whether in the Eurozone, the USA or elsewhere, are delaying their plans due to the recent fall in the pound. I want to suggest three reasons not to delay your purchase:
- The pound could easily go lower. Until the effects of the negotiation are known no-one knows what leaving the EU will do to the British economy. Most financial experts predicted it will suffer post-Brexit, and if correct the pound could fall further. Another variable, however, is how the EU will cope without Britain. If the EU fails to thrive, the falling euro could match the falling pound.
- Property prices in some parts of the Eurozone are rising fast, especially in areas such as the Spanish costas, where many of us like to buy. Delaying your purchase therefore makes little sense.
- General inflation is beginning to rise in the UK, while savers continue to be hit by low interest rates. In those circumstances investing in overseas property is an increasingly attractive prospect.
If you decide to go ahead, we can help design a currency strategy that will give you peace of mind by reducing risk, and by saving you money. We have a number of tools on offer when booking your transfer that could help protect your funds and minimise your risks.
If you need to make your transfer now, you can benefit from exchanging your currency at the live exchange rate at the time that you contact us. Booking this rate now means you are protected from further exchange rate fluctuations but you do have to pay up front. You can discuss your options with your trader, and monitor the exchange rates beforehand.
If your transfer is planned for some date in the future you can secure your exchange rate now to protect yourself from any adverse fluctuations after the result has been announced. This also allows you to plan your budget with price certainty, as you will know exactly what exchange rate you will receive on your future transfers.
Regular Payments Plan
If you need to send funds overseas on an ongoing basis setting up a Regular Payments Plan can save you both time and money on every transfer. You can also lock in the exchange rate on these payments to ensure that you always know how much you are sending and receiving every time.
To talk through the best currency exchange tools for you in the run up to the EU Referendum, make sure you give us a call today on 020 3542 7829.