Financial new year resolutions home and abroad

If your New Year’s resolution is to ‘sort out your finances’ don’t forget ways to save money on a property abroad says currency specialists HiFX. Almost a quarter of a million Brits already own a property abroad and with an average 15% increase in the number of buyers each year up to 285,000 Brits could have financial commitments overseas in 2008.

Mark Bodega, Director at HiFX who help over 30,000 people buy and sell currency every year, recommends people consider the following New Years resolutions in order to put their overseas finances in the best possible shape for 2008:

Resolution #1 – ‘I will save money when buying or selling a property abroad’

“People can save money when buying a property abroad by pre-planning the currency aspect of the transaction. Fluctuating exchange rates make a huge difference to the final price of dream home overseas - especially true when buying ‘off plan’ which requires several ‘stage payments’ during construction. This process can take up to a year in which time currency may have fluctuated by as much as 20% for some volatile currencies. People should consult a currency specialist to fix the exchange rate on their purchase – you would never agree to buy a property in the UK unaware of the final cost; if you agree to buy an overseas property without fixing the exchange rate at the outset, that's exactly the gamble you are taking”

Resolution #2 – ‘I will shop around to get the best deal on my international mortgage’

Anybody whose overseas mortgage is up for review should make sure they shop around for a better deal. Don’t just go to your bank as there are an increasing number of overseas mortgage specialists who can search the market and find a mortgage which is right for you.

But beware – many independent mortgage brokers will charge you introducer fees of up to 2% which on an overseas mortgage of £150,000 could mean you shelling out £3,0000 for the privilege. Make sure you use a broker that doesn’t charge you any up front fees.

Resolution #3 – ‘I will save money on my money transfers abroad’

“Maintaining a property abroad can require several regular payments abroad from mortgage repayments and maintenance payments to repatriating rental income. People can save thousands by using a currency specialist rather than their bank to transfer these payments. Currency specialists do not charge commission or transfer or receiving fees – typically 2% and 0.5% respectively of the amount transferred. Furthermore currency specialists allow you to fix the exchange rate of payments into a foreign currency account for up to two years – offering peace of mind that the sterling value of your repayments will be the same each month.”

As an example – if you have a Euro mortgage of €1500 a month, at the beginning of 2007 (11th Jan) your monthly payments would have cost you £986. Due to currency fluctuations, by November 2007 the cost of these repayments would have risen to £1063.

Resolution #4 – ‘I will get the best deal on overseas property insurance’

If you are one of the many Brits who bought a property in one of the world’s many emerging property markets such as Dubai, Bulgaria, Cape Verde, Croatia, Morocco, Poland and Romania, 2008 is the time to shop around for cheaper overseas property insurance as many insurance brokers have responded to this increasing demand for a place in the sun or snow by widening their insurance protection. Canny owners could take advantage of risk related discounts of up to 40%. However buys should beware; do not be tempted to use a normal home insurance policy and avoid disclosing that the property is a holiday home as this could invalidate your insurance.

Also, when arranging your cover, it is important that you carefully consider what you will be using your overseas property for. Will you be using it occasionally as a holiday home or residing there permanently?

Resolution #5 – ‘I will not book my flights last minute’

Many airlines, particularly the low cost carriers have a January sale which include some great deals for the more organised owner. At the time of writing, Ryanair for example was offering one way flights to many popular destinations from £5 one way including taxes and charges and Easyjet had a January Clearance with flights from £13.99.

To get your overseas finances in order in 2008, visit hifx.co.uk.