When buying property abroad for the first time, you may be forgiven for thinking that investing money overseas is not that different from investing here in the UK. In some ways this is true, however, there is one very significant factor which needs to be taken into account when making any foreign money transfer: currency movements. Small (or sometimes large) shifts in foreign currency exchange rates happen frequently and can occur in relatively short spaces of time. Exchange rates constantly go up and down during the course of any normal day, so if your chosen currency suddenly loses value against the pound, your dream investment could quickly turn into financial nightmare.
For example, imagine that the foreign exchange rate goes against you by 10% just before you make your money transfer to pay for your property. This will effectively increase the sterling price you pay by 10%. Naturally when dealing with hundreds of thousands of pounds, 10% is a very big deal and so could leave you in a very uncomfortable situation if you’re on a tight budget. In the worst case scenario, you might even lose your overseas property altogether.
Thankfully, help is at hand. Our team here at Foreign Currency Direct are experts at monitoring and assessing currency movements. Our brokers know when it is better to purchase currency in advance and when it makes more sense to wait for better circumstances. For professional advice and unbeatable service, get in touch with us here at www.currencies.co.uk, today.