When you have secured your dream overseas property, you may then need to purchase the property in the currency of that particular country. Your traditional high street bank, may seem the obvious location for converting your savings, however they will likely offer you a "Tourist Rate" on your hard earned cash, rather than the "Commercial Rate" offered by specialised foreign exchange companies. Therefore by using a foreign exchange company with its more favourable rates, you can potentially get more currency for your pound!
Due to the volatility of the currency market, exchange rates are constantly changing. This can also leave you vulnerable to poor exchange rates when converting your money. However, when using a specialised exchange company, there are several options available to help you secure the best rate possible.
Spot transactions
These are simply a buy now, pay now option, where the currency is purchased immediately at that days "Commercial Rate". This type of transaction is ideal for those who require their currency immediately. However, should you have some time before your payments are required it may be more favourable to purchase currency using a forward transaction.
Forward transactions
These are the buy now, pay later option. A forward transaction will allow you to reserve a rate up to 18 months in advance of your requirement for the currency. A small deposit will hold your selected rate until the currency contract matures. This option not only allows you to protect against the risk of a drop in the exchange rate, but also gives you the security of having the currency you require at a guaranteed cost, regardless of fluctuations in the market.
Limit orders
A limit order allows you to place an order in the market for a desired exchange rate. This has the advantage of protecting you against negative shifts in the exchange rate, while still allowing you to benefit from positive changes to the exchange rate. Your order is placed into the currency system, and an automatic purchase is made once the market hits your specified rate.
Regular payments
It is important to remember, that when you have purchased your overseas property, it is more than likely that you will still be required to make payments in foreign currency. This could be to make mortgage payments, pay for maintenance or transfer your pension or salary. Again using a reputable foreign exchange company can simplify this process and reduce your costs, by setting up monthly payments which will be subject to extremely competitive rates.
If you haven't had to deal with currency exchange before, the options available to you and their implications may seem daunting. This is why we here at Edison Ford Investment Property would be happy to discuss this process with you in more detail and make a recommendation to a suitable, reputable foreign exchange company. The full information you require to potentially save thousands is only a click away. To protect yourself from this unecessary risk, submit an enquiry now.
You will notice that every property listed on EFIP.co.uk has the price automatically displayed in Sterling and Euros, whilst offering an additional link to a currency calculator, should you wish to convert the price into another currency. However, it is important to note that foreign exchange rates fluctuate and that the rates are provided for indication purposes only. Please contact us for current rates or advice on the markets.
To use our currency converter, please use the following link: Currency Converter
