Buying property abroad is a popular ambition in the UK. The option of living a life of leisure in a place that offers guaranteed sunshine, or just having a holiday home at your disposal at all times, can be hugely tempting. Some might be drawn to the money-making opportunities foreign real estate can offer, either from rental income or from capital growth.
Regardless of precisely why you are buying a property in another country, you are unlikely to achieve your desired goals unless you have planned everything very carefully – including the process of exchanging currency to pay for your purchase. After all, this is a highly costly and complex transaction, and nobody wants to end up paying over the odds unnecessarily if they can possibly help it.
Sometimes, overseas property buyers can be easily swayed by their emotions, with their natural eagerness and excitement clouding their judgment. As a result, they can end up making very expensive mistakes, so it might be a good idea for you to get a foreign exchange service involved in the transaction.
They not only have extensive expertise and know-how on the finer points of purchasing real estate abroad, but also offer highly competitive exchange rates when compared with traditional banks, and they generally don’t charge commission either. This can potentially lead to considerable savings, freeing up cash that you can put towards other vital expenses.
Dealing with changing rates
In these turbulent economic times, exchange rates can be highly volatile and if you’re purchasing a foreign property, you can’t spend all your time monitoring fluctuations in order to decide when you should start transferring money. However, a foreign exchange specialist will be able to determine exactly when is the right time to start making international payments for a property purchase, so you can be confident of getting the best possible deal.
They can also offer you a forward contract that enables you to fix your exchange rate for a certain period of time. This guarantees some stability in these uncertain times, so even if a massive economic shock occurs and leads to chaos on the worldwide currency markets, it will not affect the cost of your transaction.
Changes in currency rates can add thousands of pounds to the cost of any deal and, in the worst case scenario, can end up making your dream of buying a foreign property completely unaffordable. So, securing your exchange rate and sticking to a particular figure can act as a valuable safety net to stop this happening. It also allows you to keep on top of your wider finances, as knowing exactly how much your property is going to cost will let you plan for other expenses, such as tax and insurance.
Ease the stress
Purchasing a property at home can be incredibly stressful and buying abroad can be just as difficult, if not more so, given the fact you have to consider exchange rates, rules and regulations in different countries, and the likelihood of key legal documents being written in another language.
Foreign exchange specialists can take some of the stress of managing such a complex transaction away and offer valuable support throughout the process. Experts will have good knowledge of the area in which you are purchasing and will be well-placed to answer any questions you may have. The advice you get won’t be of the one-size-fits-all variety and will instead be specifically tailored to your individual needs – and be straightforward and easy to understand.