Even something as seemingly complex as managing your currency exchange in relation to an overseas property purchase can be simple and cost effective if you use the right tools for the job.
Choosing the right tool will depend on your circumstances, the property you are buying, the convincing process in your chosen country as well as the currency market conditions.
But there are some basic principles which will help.
Buying a property, will usually involve a number of payments; either ad hoc or in a stage payment plan. Thankfully, ensuring your budget doesn’t get stretched is a relatively simple process. Your initial payments can be booked as ‘Spot’ transactions. These are agreements to exchange a fixed amount of currency and a set exchange rate within a few days of the contract being struck.
If you want to set the exchange rate for the stage payments, you can do so with what are known as ‘Forward’ contracts whereby you agree an exchange rate today for a set amount of currency but delay the settlement of the contract until a date up to 2 years in the future. This is a godsend for those who want to cut out all of the currency risk from their plans and it is even more attractive when the exchange rate in question is particularly attractive at the time.
Achieving the best exchange rate for either a Spot or Forward contract is best achieved using another particularly useful tool. The currency market is a 24/7 melee of volatility so catching the best price can be a very hit and miss process. Far better to target an exchange rate which suits your needs and place an ‘Automated’ order into the market at that level which will be triggered if that rate is available anywhere in the world at any time.
Use the right tool and you will save yourself burned fingers and lost opportunities. Leave things to chance and your investment may not be quite as attractive as you had hoped.
To find out how you can take advantage of positive fluctuations in the market and exchange your currency at the right time to get the best possible rate, call 020 7350 5474 or visit www.halofinancial.com
“Halo is by far the most efficient company I have ever done business with. Their monetary transfers are quick and effortless, and many times at a conversion rate that is 3 or 4% better than any other bank is offering. Thanks for a great and reliable service!” Recent Customer quote – from Feefo.com
Written By David Johnson, Senior Analyst, Halo Financial
Authorised by the Financial Conduct Authority under the Payment Services Regulations 2009, FRN: 528727.
Her Majesty’s Revenue & Customs MSB registration No. 12197454.
© 2015 Halo Financial Ltd. Registered in England No. 5155787.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.