How to keep your overseas property dream on track in 2017
As we wave goodbye to a somewhat eventful 2016, it’s time to look ahead to what 2017 could have in store for the currency market and your plans to buy a property overseas.
You won’t be surprised to hear that Brexit will continue to dominate sentiment towards the pound over the coming 12 months. Sterling is likely to face a rollercoaster ride next year as policymakers start the process of leaving the EU. If Article 50 is invoked towards the end of the first quarter of 2017 – as promised by the PM – the value of the pound is likely to plummet.
Election season is on the radar in the Eurozone. France is gearing up for its presidential election in May and a victory for Marine Le Pen of the National Front is no longer seen as unthinkable. The Dutch have an election in March which could have similar results, as the far-right anti-EU Geert Wilders shoots up the polls. If the anti-establishment vote prevails on the continent the euro will come under significant downward pressure.
As the rest of the world attempts to digest Donald Trump’s shock victory, the US dollar has actually benefitted from a ‘Trump Boom’. Time will tell if this trend is set to continue when the ‘chosen one’ is sworn in as President in January.
If you decide to buy a property overseas in 2017, 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.