How to Save Money on your Overseas Property Purchase
Have you considered using a Foreign Exchange Specialist ? Many
people are unaware of, or neglect the importance that exchange
rates have on the cost of their overseas property and the
currency risk that is associated with an overseas purchase. If
you're emigrating or buying a holiday home abroad, you are
likely to transfer money into a foreign currency. This needs
serious planning, especially if you are buying a new development
'off plan' where you are required to make several 'stage
payments' during the construction of your property. We therefore
highly recommend the use of a specialist foreign exchange
company who offer services such as these:
Travel Money -- by using a foreign exchange agent you can get
better rates than your bank or travel agent & zero commission
charges. You can also have the convenience of the currency being
delivered free to your home or place of work or if you prefer
you can choose to collect from major airports or railway
stations. Off-shore accounts -- Having an off-shore account can
be beneficial for a number of reasons. As a frequent traveler it
can be convenient and economical to hold an account in the
currency of your destination. Bureau de Change and credit cards
both charge chunky premiums or commission. So, if you know
you'll be spending considerable time abroad, why not transfer a
lump sum in advance and take advantage of savings on the
currency conversion? With today's fluctuating exchange rates, it
can be prudent to hold a number of different currency accounts
to protect your assets from global market variations. Offshore
banking havens can offer high earners and investors low or
no-tax environments in which to deposit savings for attractive
rates of interest. Instructing your agent to exchange and
transfer your money into such saving accounts can help you to
avoid tax and, effectively, stop the bank from pocketing your
hard earned money! Mortgages -- Need to re-mortgage in the UK to
"top up" your overseas finance? Are you unsure about the pros
and cons of Sterling vs. currency mortgages? If you're looking
to finance an overseas property, ask your foreign currency agent
who works with selected mortgage brokers to bring you a mortgage
suitably packaged for your maximum convenience and minimum cost
. Spot Contracts-- the most basic and popular foreign exchange
product is an agreement to buy or sell one currency in exchange
for another. You settle the contract the same day, at a price
based on the current value of one currency compared to another
-- the "spot exchange rate". Spot exchange rate movements are
highly unpredictable however, even during a single trading day.
Relying on the spot market for future foreign exchange is highly
speculative. Forward Contracts -- let you "buy now-pay later"
yet fix the rate in advance and thus avoid the risk of the
exchange rate moving against you. Between June 20th and July
20th 2005 for example, the Sterling Euro rate fell from 1.50 to
1.43. If you had booked a forward contract in June, you would
still have been able to buy at or near 1.50. If you had been
buying a property for 200,000 Euros you would have saved
yourself around