The smart way to transfer money for your overseas property
When the winter is cold and dreary at home, the attraction of an overseas property in sunnier climes is very tempting. There are many reasons to invest in property abroad and your new home could be a very sound investment for the future. Whether you are looking to purchase a holiday home or to move abroad permanently, you will want to get the best returns from your property investment.
Whatever your reason for buying overseas property, the dream can often turn into a nightmare if you don’t transfer your money wisely. Buying property anywhere in the world is a huge decision and often a long process riddled with legalese and delays so the last thing you want is to add a money transfer problem into the mix.
The good news is that there are many dedicated money transfer specialists that can give you advice that is tailored to your exact needs and that will ensure you are totally at ease with the transfer process. Banks take a massive £50 on every £1000 you transfer, so it’s well worthwhile shopping around for alternatives.
Finding the right money transfer service to suit your needs
According to Aviva Tabachnik, Partnership Exec at comparison website MyCurrencyTransfer, ‘‘Just like any other financial services such as mortgages or loans, you can shop around for the best money transfer deals.’’ In doing so, you can get a good feel for the professional companies that can offer you the most competitive rate, specialist services and also loyalty deals (such as fee free transfers) and personalized products. You might also want to think about arranging a ‘forward contract’ that gives you access to currency at today’s rate, for payments in the future. It gives you security to know the true cost of your property will never increase. Many money transfer specialists offer these services and can fix your contract up to a period of two years.
You might also want to buy your currency at what is known as the spot rate. If you’ve been watching the markets and spot a good rate (or you can have your money transfer broker do this for you), you can choose to buy all of your currency in one go at today’s exchange rate. By doing this you fix all of your money in one go making it very easy to plan ahead and know exactly how much you are spending. Always look to benchmark the rate you are offered against the live exchange rate.
Overseas mortgage payments
Many property investors choose to arrange an overseas mortgage on their foreign property and this arrangement also needs careful financial planning. The good news is that your money transfer broker can also help you to secure a great rate on your mortgage payments, via a regular overseas payment plan. This will certainly reduce your currency risk and your personal broker can arrange regular monthly transfers that keep you on top of your finances year in and year out.
Investing in property abroad can be risky if you opt for the first deal or service provider that you come across. The trick is to research money transfer brokers, keep a close eye on exchange rates and only agree to a money transfer once you are aware of the exchange rate you are paying and any fees involved. When you are transferring the amounts involved for property purchases, it pays to be extra cautious.
