British people have been able to make their dreams of owning an overseas property a reality by taking advantage of weak foreign economies and plunging overseas property prices. Young people who have been finding it difficult to get on the UK property ladder are also being attracted to the overseas property market while prices are low.
Buying a property abroad can however be a more costly exercise than first thought with additional factors increasing the cost of your “bargain” home or investment. There is unfortunately not a lot that can be done in relation to the associated taxes, legal and agent’s fees but as long as you have done your homework then realistic estimates for these can be factored into your budget.
However there is another considerable cost of buying abroad which largely goes un-investigated or worse ignored by British people. A cost which, if properly considered, can save you thousands of pounds when realising your overseas property dream.
As you will be paying for your property in another currency, you must also consider how the exchange rates will influence the actual cost of your new property. The cost and return on your overseas property can be significantly influenced by fluctuations in the exchange rate. Just a couple of pence in the wrong direction can cost you thousands of extra pounds. This is however one cost you can do something about!
To get the best value from your money when making international payments you should consider how you will manage foreign exchange risks and who will facilitate your payments in foreign currency. It is therefore important to think about when you buy and how you make your payments as getting it wrong can cost you thousands.
Don’t just leave this matter to chance or accept the exchange rate you are given by your bank as there are many options available to reduce currency risks and ensure your money goes further.
Specialist online foreign exchange companies offer competitive exchange rates and more flexible international money transfer options. There is now no need to suffer poor exchange rates and expensive transfer fees offered by traditional high street banks when making international payments.
There are a number of foreign exchange risk management tools that you can give you some protection from the unpredictable foreign exchange whether you are making a lump sum payment, regular payments on a mortgage or transferring funds into a foreign account to pay local bills and fees.
For example, Forward Exchange Contracts enable you to lock in an exchange rate before it falls and pay the funds at a future date. This allows you to protect yourself from fluctuating exchange rates and know the exact cost of your transaction.
Limit Orders permit you to specify a target rate that you want to transact at. When this rate is triggered a specialist dealer can carry out the transaction on your behalf. This can help you get the best possible exchange rate when making overseas mortgage payments.
An additional advantage of using foreign exchange specialists is that they are often able to transfer funds more quickly than high street banks, often on the same day. This can be helpful and put you in a good position when you need to put down a deposit quickly when you find that perfect house abroad.
So make sure that you shop around for the lowest exchange rates and contact a foreign exchange specialist to find out how they can help, not only for any lump sum payment but also for any on-going transactions such as mortgage payments.
Taking advice from a foreign exchange specialist could save thousands of pounds on your international payments. This can reduce the cost of your property and improve its future resale value helping to make your purchase a shrewd investment and not a liability.
Contact Worldwide Lawyers to get connected to an independent overseas lawyer and ask us about how our foreign exchange specialist associates can help save you money on your overseas property purchase.