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Overseas property investors and those buying property abroad as a second home are missing out on opportunities to save money on their overseas property purchases. Property abroad is providing cheap property prices and in many emerging markets short term capital gains are made even before a brick laid. However when it comes to transferring money abroad many property buyers are leaving foreign currency exchange to chance. A good percentage of those buying property abroad simply accept that they may lose or gain on foreign currency exchange rates. Some overseas property buyers actually calculate their losses when transferring money abroad and see this money as part of their buying costs.
Staying in control in a fluctuating currency market
Overseas property buyers and anyone making regular payments abroad can stay in control of their finances. Indeed large corporations do it everyday so why not individuals. No longer do you have to be at the mercy of adverse currency rates. You can achieve this freedom from the swings of the foreign exchange rates quite simply.
How to save money on your money transfers
Specialist currency brokers are the key to success. Foreign currency brokers can book good exchange rates for long periods in advance therefore protecting the overseas buyer from the uncertainty of the currency markets. Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% or more, the sterling Euro or US Dollars amount that you will have to pay. There are various organisations that can convert your currency into whichever currency you need. Specialist currency dealers will normally offer you a better rate of exchange than your bank and provide a more personalised service. Foreign exchange companies often offer a proactive service to their clients, using their expertise to monitor exchange rates on the clients' behalf in order to achieve the best possible rate of exchange.
Proving that currency specialist can save you money
An overseas property investor wishing to purchase a property abroad in Spain for 200,000 euros would have paid the sterling equivalent of £135,107 in December 2005. Three months later they would have paid £139,034 for the same property. By securing an exchange rate in advance, the wise property investor would have made a saving of almost £4,000. This example although out dated can occur every day of the week depending upon how volatile the currency markets are.
Emigrating or living abroad you need a currency broker
Foreign currency specialists can save those who are emigrating or living abroad a huge amount of time and most importantly save money. Many good currency brokers provide facilities for those who need to pay bills or payments abroad on a regular basis. Imagine living abroad with bills in your home country. Now imagine being paid in Euros and your bills are in US dollars. How much do you pay into your account to cover those bills every month? The answer is impossible to know as exchange rate fluctuations make the process impossible to predict.
By fixing the exchange rate, you will know how much in you need to pay many people don't know that currency specialists can fix the rate of your currency purchases for periods of between 6 and 24 months. What is more when you deal with a specialist company they often achieve better rates and have lower fees than say your own bank
In summary it makes sense to look at your currency transfer facilities as this could save those making large transactions overseas a great deal of money.
Nicholas Marr is a lifetime property investor and CEO of Marr International Ltd a UK based property marketing company that is responsible for one of Europe's fastest growing overseas property web sites at www.homesgofast.com . He continues to work closely with specialist currency brokers.
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