Brits buying in the US or Europe right now won’t need reminding of what the exchange rate is doing, with the pound hovering at two-year lows against the dollar and euro. Here are five tips to help today’s buyers get the most from their currency transfers…
– Organise your funds and work out your budget. Before you even start looking for an overseas property, you need to establish how much Sterling you have – or will have – available for your purchase. Above all, be realistic and wary of over-stretching yourself. If your allocated funds include savings or money tied up in other investments, such as shares or bonds, make sure they will available when you need them. If you will be using the proceeds from the sale of your UK home to purchase abroad, ideally wait until you have accepted an offer to start planning your overseas budget.
– Prioritise currency transfer, don’t ignore it! Too often buyers don’t think about their options for transferring currency, whether that’s euros or dollars, until the last minute, typically the day before they need to make a payment. This route limits your options, leaves you exposed to whatever exchange rate is available on the day and invites unnecessary stress. Instead, start planning your currency needs the moment you have an idea of your budget. This way you’ll have a clearer idea of what you can afford in euros or dollars and be in a position to minimise your exposure to exchange rate movement.
– Register with Smart Currency Exchange. It’s never too soon to speak to the leading currency transfer specialist – their expert service has helped thousands of buyers buy abroad successfully. To get the most from their service, which includes access to a personal currency trader, talk through your buying plans with them as early on in the process as possible.
They will ask about timeframes, explain how your budget could be affected by the exchange rate and then outline different solutions for transferring currency, dependent on your personal preferences. They are one of the three key specialists needed for a successful property purchase, the others being an estate agent and independent lawyer. Download your free guide from FCA-authorised Smart Currency Exchange today!
– Don’t try and beat the market. Never lose sight of your primary reason for transferring currency – it’s to buy an overseas property, not to make a fast buck on the currency markets. Being obsessed with achieving the best exchange rate, such as waiting till the last minute in the hope the pound will strengthen, is a dangerous strategy. Of course, getting a competitive rate and optimising your buying power are important, but having peace of mind is also key to a smooth purchase.
For most people this means being able to fix the cost of their property purchase in pounds, as well as the local currency, as soon as possible. This allows you to budget effectively by removing the uncertainty – and worry – caused by fluctuating exchange rates during the purchase process. Smart Currency Exchange can make this possible with a forward contract, which enables you to secure an exchange rate for a future currency transfer, such as completion day. This typically requires just a 10 per cent deposit.
– Keep up to date with currency markets. Information is power and having an understanding of how and why currency rates move will help you comprehend why planning is vital and could influence decisions you make. Smart Currency Exchange sends regular currency updates and registered clients are always welcome to discuss how market conditions could affect their own situation.
Written by Overseas Guides Company.
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If you are considering an overseas property purchase, whether for lifestyle or investment, opening a no-obligation account with FCA-authorised Smart Currency Exchange will enable you to benefit from their competitive exchange rates and specialist currency knowledge, ultimately saving you money and time. For more information, download Smart Currency Exchange’s free report or visit the Currency Zone.