Foreign Currency
It’s essential to understand the potential implications that sharp movements in the currency markets may have on the final purchase price of the property. The following represents a typical example of how a property purchase can cost you far more than you anticipated.
You have been warned!
For example, in five months, from January to May this year, the euro has been as high as 1.5279 and as low as 1.4096. Depending on when you purchased the currency, a property worth €200,000, could have costed either €130,898 or €141,884, a difference of €11,000.
Much of this loss could have been prevented by securing the rate with a Forward Contract. This mechanism is especially useful when market conditions are currently advantageous, but the currency is not actually needed until a future date. The situation can become more complex when purchasing a new property off plan. This will typically involve multiple stage payments over periods of up to 18 months or longer. Due to only guide dates being given for completion of each stage, a series of Forward Time Option contracts could secure the rates right up until the final completion, whist remaining flexible in order to accommodate unspecific dates. No one would dream of buying a house in the UK without knowing the final cost. In the same way, you can buy and fix a rate for your currency ahead of time, so you will know exactly how much you will end up paying for your home abroad. But how many of us have the time or sufficient knowledge to be in a position to confidently gauge when the foreign currency rates are at their most favourable?
If you are considering the purchase of a property abroad and would like to find out how Foreign Currency Direct can help to safeguard your interests – or simply save you money by arranging a better deal than your high street bank – Visit currencies.co.uk . Don’t make an expensive mistake ~ Secure your currency at today’s rate!!
So why should you use Foreign Currency Direct :
- • we are the market leader in foreign exchange
- • each client is assigned a dedicated dealer who, using plain English provides a bespoke service
- • you are kept up to date with currency movements and predictions on market fluctuations
- • both private and corporate clients get competitive rates on all major currencies
- • we work hard to identify the best opportunities for your money
- • no registration fee
- • no obligation
- • no commission fee
- • stress-free, prompt and accurate methods of transferring funds
- • we can help reduce your exposure to exchange rate volatility
- • spot transactions – the Buy Now, Pay Now option, ideal if your capital is readily available and if you need to act swiftly
- • you can forward transactions using our Buy Now, Pay Later option, and ideal if you have time before your money is due overseas or are waiting for funds to arrive. A small deposit secures your rate for up to 18 months securing you currency at a guaranteed cost, protecting the price of your house if the pound falls against the euro.
- • limit orders – place an order with your dealer for your desired rate. Your dealer tracks the market movements and if your desired rate is reached, contacts you to arrange the purchase.
- • Regular Currency Transfers – transfer currency overseas at competitive rates. Ideal for regular monthly payments, foreign mortgages, pensions or salaries.
